Nevis is considered one of the most promising offshore jurisdictions where a wide spectrum of tasks can be solved. Thanks to balanced legislation and well-thought-out instruments of confidentiality protection, Nevis has become the jurisdiction of choice for entrepreneurs from all over the world and from the United States of America in particular. In a sense, Nevis is one of the last frontiers of true economic freedom in the world of today.
What opportunities does Nevis offer to a foreign entrepreneur who wants to start a business venture in the jurisdiction? The opportunities are great indeed but before starting a company in Nevis, you have to find out about the specifics of the local business climate. To begin with, you have to read the laws. The offshore corporate legislation is based on the following acts in Nevis:
- Corporations Act (2002, with amendments);
- International Insurance Act (2006, with amendments);
- Offshore Banking Services Act (1996, with amendments);
- Limited Liability Companies Act, 2008;
- International Trusts and Foundations Act (2002, with amendments);
- Types of Companies Act 2004.
The jurisdiction is part of the Federation of St Kitts and Nevis and the Federation, in its turn, is a member of the British Commonwealth of Nations. The country has signed the Hague Convention.
The legal system of Nevis is based on English Common Law but it has also borrowed some elements of the US legal system. The corporate legislation has been stable in Nevis for years and this fact allows making long-term plans and solving everyday business issues without worrying that the regulations may change.
What advantages does Nevis offer?
Nevis is an extremely business-friendly jurisdiction in general terms but probably the most important advantage that Nevis boasts is lack of taxes for non-resident companies. Such companies are exempted from the following taxes in Nevis:
- Profit tax;
- Capital gains tax;
- Succession tax;
- Inheritance tax;
- Gift tax;
- Corporate income tax.
In addition to that, there is no currency control in Nevis. We must note, however, that certain changes to the tax system are currently being discussed at the moment. It is too early to say how much the tax system is going to change: you have to keep track of the latest news from Nevis.
Today, you only have to pay a company registration fee when establishing a company in Nevis and then you will have to extend the company registration every year. Naturally, a registration extension fee is due every year. The fee is not large at all (only a couple hundred dollars) but if you fail to pay it on time, your company is going to be struck off the register. Practice shows, however, that your company can return to the register without too much trouble after you pay the fee.
What types of business activities are legal in Nevis? Any types of business activities that are not prohibited by law are legal in Nevis. We must note, however, that companies providing banking, trust, insurance, and reinsurance services need licenses.
When setting up a company in Nevis, you can choose from several types of companies. Yours can be:
- A private company;
- A public company;
- An exempt private company;
- A limited partnership;
- An exempt limited partnership;
- A trust.
The local legislation allows buying ready-made companies.
Registering a company in Nevis: main provisions
- The name of the company shall be unique; it has to reflect the company ownership form and contain words such as Limited, Incorporated, Corporation, Limited Liability Company or acronyms such as Ltd, Inc., Corp., LLC, etc;
- The company shall have a brick-and-mortar office in Nevis and a registered agent;
- The company shall engage in no business operations in Nevis to remain tax-exempt;
- There are no requirements as to the authorized capital;
- Issuance of shares without par value is allowed;
- The shares shall be kept at the company office in Nevis;
- Nominee directors and shareholders are allowed;
- Company shareholders and directors can be natural or legal persons; their nationalities are of no significance;
- Shareholders and Board of Directors’ meetings can be held in any country of the world;
- There are no requirements as to the bookkeeping, annual reports, or audits (Nevertheless, we highly recommend keeping corporate and financial records anyway. In this case, you will be able to prove your innocence with the help of these records if somebody sues your company);
- The information about company directors and shareholders is confidential and it can be disclosed only on a court decision (and it has to be a local court only);
- Corporate documents can be kept anywhere;
- A company can be established within 1 to 2 weeks in Nevis;
- It is possible to register a company in this jurisdiction remotely.
Company registration procedure in Nevis
The procedure of registering a company in Nevis consists of the following steps:
- Ascertain with the Register that the proposed company name is unique;
- Prepare all the required application documents;
- Pay the state duties and fees;
- Apply for company registration to the Business Register (your application will be processed within 1 to 5 days);
- Make copies of the statutory documents, have them notarized and apostilled.
List of documents required to register a company in Nevis:
- Passport copies for company shareholders and directors;
- Bank statements from their banks;
- Proofs of their residential addresses (recent utility bills);
- A letter of recommendation from a professional or a business partner;
- An application form – completed and signed.
In accordance with the Nevis legislation, any person who discloses personal information of company ownership without a court decision will face imprisonment for up to 1 year and/ or a US$ 10,000 fine.
The company registration and registration extension fees constitute a considerable portion of the local state budget.
To wind up, we will reemphasize the pluses of the jurisdiction and point out a few minuses.
Nevis boasts the following advantages:
- A favorable business environment;
- Zero taxes for non-resident companies (local companies are taxed at 33%);
- Flexible corporate policies and government support;
- Ironclad asset protection;
- An opportunity to become a citizen of St Kitts and Nevis by investment;
- Information confidentiality (Nevis is probably the best jurisdiction when it comes to confidentiality of company owners’ information);
- Low cost of company registration;
- English is the official language in the country;
- Nominee services are legal;
- No local company secretary is required;
- A company can be re-domiciled to and from Nevis while keeping its name;
- Authorized capital does not have to be deposited;
- A company can be fully owned by a foreigner.
Nevis also has some disadvantages including the following ones:
- Real property is rather expensive on the island;
- Qualified specialists are hard to find in Nevis;
- You would have to pay a higher salary to a qualified specialist in Nevis than you would in Europe or America.
Offshore jurisdictions share many properties as they actively exchange information with each other. At the same time, each offshore jurisdiction is unique and it may offer some advantages that could not be found anywhere else. If you would like to start an offshore company, you certainly need some professional advice to make the best choice.
