St. Kitts and Nevis the best option for offshore business

11.02.2021

Nevis is more than a popular holiday destination. Its competitive offshore banking and company formation capabilities, together with its stable political and economic system, low crime rates, and English as its official language, make the Nevis offshore bank system a reliable option for high-net-worth individuals who want to protect their corporate and personal assets.

Nevis Offshore Jurisdiction & Company Formation

The ease of forming a corporation, competitive pricing, regular improvements to its law to meet modern demands are why a Nevis offshore company formation option is ideal.

The Nevis offshore company formation costs are among the lowest. For less than US$ 2,000, an investor can form an LLC, making it one of the cheapest Nevis offshore company solutions.

The Nevis Business Corporation Ordinance allows a company to incorporate a Nevis offshore company under the same laws as an international business corporation (IBC). Once registered the company may conduct any legitimate business offshore.

Types of Nevis Companies

There are two forms of legal entities, the IBC (International Business Corporation) and LLC (Limited Liability Company). The IBC is an international business company that issues shares; an LLC is a limited liability company without shares.

Nevis Offshore Company Formation Requirements

To form an offshore business in Nevis, an investor may follow the simple requirements outlined below and adhere to the restrictions set out by the Nevis Business Corporation ordinance.

  • Identifying an agent:

Investors are required to register their Nevis offshore company with a registered agent. The agent must possess an administration license to operate in Nevis and have a registered office in the country. An agent can be a solicitor or barrister registered as per the 1984 ordinance.

  • Corporate name registration:

Nevis law requires any new business to utilize a unique name for its company. It must not be similar to another existing business in the country.

  • Shareholders:

All corporations in Nevis need to have a minimum of one shareholder at any given time. This shareholder can be an entity or individual and may reside anywhere in the world.

  • Directors and management:

Directors of a Nevis corporation can either be appointed managers or shareholders. The company needs to have at least one director at all times. Company directors can either be entities or individuals. A company secretary is also required. The secretary can either be an entity or an individual.

  • Licensing and permits:

Corporations need to acquire a license or special approval to conduct certain business activities. These include savings, banking, loans, fund management, insurance, building societies, investment fund, chamber of commerce, municipal, or a university. A Nevis LLC may not conduct any business within the country relating to real estate.

  •  Office address:

If the investor is working with a registered local agent for incorporation purposes, the investor may use the agent’s office for the company’s official notices. The investor may also maintain an office for its Nevis offshore company anywhere in the world.

  • Authorized capital:

There is no minimum authorized capital required to incorporate a Nevis offshore company.

  • Accounting and auditing:

There are no requirements for statutory accounting and auditing. That said, Nevis’s laws require LLCs and IBCs to maintain their company accounts and documentation.

Nevis Offshore Company Taxation

Offshore companies with no operations in Nevis are tax exempt. There is no corporate, income or property tax, or stamp duty. As such, Nevis does not require any tax returns to be filed by Nevis Business Corporations. In place of taxes, IBCs and LLCs pay an annual registration fee of US$ 220.

Nevis Offshore Bank Account

There are two options for opening offshore bank accounts in Nevis, a personal account held by an individual or a Corporate account through the formation of an LLC or IBC.  For investors, opening an offshore Nevis corporate account is best as it creates a separation between the individual and their assets, strengthening the asset protection capabilities.

The banking features and offshore services Nevis bank account offers include:

  • Multiple currency Accounts
  • Low currency risk: the XCD is pegged to the USD
  • No in-person requirements
  • Credit cards, internet banking, and telebanking services

Advantages of Banking in Nevis

The Nevis Banking system features two advantages, the country’s tax and privacy laws.

In Nevis, there is no taxation on any income earned outside of the jurisdiction. Nevis offshore LLCs and their owners and directors are not subject to withholding tax, capital gains tax, estate tax, dividends, capital distribution, wages, and other incomes.

Nevis has a strong reputation for providing financial privacy by not making any information public regarding owners and directors of offshore companies. The government has exhibited a total commitment to maintaining the confidentiality of those involved in a legitimate business.

Bank Account Requirements

An investor opening a Nevis offshore bank account will need to provide the following:

  • Notarized copy of passport
  • Bank and professional reference letter
  • Proof of physical address
  • Incorporation documents
  • A deposit of USD$ 10,000 USD

Which are the banks used for offshore accounts in St Kitts and Nevis?

Investors wanting a Nevis offshore account may consider the following banks in Nevis for offshore companies.

  • Nevis International Bank & Trust
  • RBC Royal Bank of Canada

If you would like to learn more about the benefits of a Nevis offshore company and bank account, contact us today for an individual consultation with our citizenship experts.

Frequently Asked Questions & Answers

What is the Saint Kitts tax year?

St Kitts and Nevis have an 'Unincorporated Business Tax’ calendar consisting of three separate tax periods. The first is from December – February, the second is from March-May, and the third is from June – August. Details about the St Kitts tax rates and respective tax schedules can be found at the tax office in St Kitts.

Is the Country included in the CRS?

St Kitts and Nevis actively participate in this tax matter. On December 21, 2016, the National Assembly of St Kitts and Nevis passed the Common Reporting Standard (Automatic Exchange of Financial Account Information) Act to implement the Common Reporting Standard. The Act is also supported by the Common Reporting Standard Regulations and made official on December 29,2016. All reporting financial institutions in St. Kitts and Nevis are required, in respect of the calendar year 2017 and every following year, to file with the Competent Authority all prescribed information on reportable accounts.

Do I need to file a tax return?

There is no personal income tax for individual St. Kitts and Nevis passport holders; thus, it is unnecessary to file a tax return form, nor is there a need to deal with filing payment or penalties. With corporations, any business incorporated in St Kitts and Nevis will need to file an Income Tax Return, even if the corporation did not have any business transactions during the year or even if it applied for a tax holiday. Any non-resident, corporation, or otherwise, with a permanent business establishment in the Country must file an annual Income Tax Return. An offshore corporation's local branch office will be considered as if they were incorporated in St Kitts and Nevis and as a separate tax entity from their head office.

Is St Kitts and Nevis a tax haven?

A trust incorporated in Nevis is exempted from taxation on any income earned anywhere in the world outside of Nevis, including dividends and interest, withholding taxes, capital gains taxes, or estate taxes. Nevis trusts or offshore banking from Nevis are not required to pay stamp duty on transactions. There are no exchange controls in Nevis, and the Country has steadfastly refused to sign any taxation treaties with other countries.

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