Why Going Offshore in Nevis is popular in international business

Ever thought about an offshore company in Nevis? Offshore Nevis is a small but important financial center in the Caribbean, located within the twin-island country of St. Kitts and Nevis.

As a rule, companies and trusts here are created by foreign investors to protect their personal wealth and assets, since local corporate law provides the strongest protection of investor interests. The primary reason for this choice is the stable, British-based legal system, which is distinct from the owner’s country of real residence and tax residence.

If you need to create a classic offshore company in Nevis, a trust, or a more complex structure such as the intriguing Nevis Multi-Form Foundation with a valid corporate bank account in Nevis or elsewhere… contact our experts!

Key Takeaways

• Nevis continues to be a well-established global leader in forming international companies and protecting assets due to its high level of privacy protections, flexibility in corporate law, and efficient company incorporation process.
• Companies based in Nevis are often used for investment, holding, consulting, and other international business activities.
• However, regardless of the choice of a foreign entity, all entities will still have an obligation under international AML laws, as well as tax laws and reporting obligations.
• Therefore, it is necessary to choose the correct legal form that meets your current personal income tax residency status, conducts your proposed business, and also considers your long-term goals.

Where to start your offshore business

Many classic jurisdictions without corporate tax are identical in the requirements and conditions imposed for the creation of an international business company (IBC). However, the tightening of rules and requirements by the OECD to curb the erosion of the tax base has necessitated revisions to domestic legislation in almost every offshore haven. 

Nevis has adapted with the times and is no longer viewed as “classical offshore.” Rather, it is a modern jurisdiction with an optimal balance between compliance with international regulations and minimal bureaucracy for international companies and foreign investors.

Note an important fact: offshore Nevis offers the strongest protection for personal data and investors’ interests and is not blacklisted by supervisory and regulatory bodies, including the OECD, the EU, and other communities.

Is Nevis offshore? Yes, in the broad sense of the word. “Offshore” simply means somewhere outside your own country. However, the lists of classic offshore states are regularly updated, and jurisdictions are constantly removed from the blacklists, making it possible to conduct international business freely and enjoy zero taxation on a legal basis. Nevis, a Caribbean island nation, is currently on the OECD White List.

Besides tax, what are the other benefits of Nevis?

Other important privileges of the jurisdiction for those who wish to protect their own capital and savings:

• Stable political and economic system;
• Complete independence or sovereignty of the state (unlike jurisdictions such as BVI, Cayman, and TCI that are ultimately controlled by the UK);
• The existence of internal legislation on asset protection, anti-money laundering, and confidentiality;
• Government incentives to attract foreign investment from EU countries and non-EU jurisdictions;
• Other tax incentives;
• Low costs for maintaining the company and maintaining an active status;
• Cheap and fast company formation;
• The ability to open a corporate bank account either on the island or worldwide (including in the UK, USA, EU, etc.) for suitably qualified clients.

At the moment, we can confidently say that “offshore Nevis,” whether or not it’s considered a tax haven, allows you to conduct business with few restrictions on the part of financial institutions, potential counterparties, and international initiative groups. The country’s legislation has been thoroughly revised, all BEPS provisions and recommendations have been taken into account, and regulatory mechanisms have been established to control offshore companies’ activities.

One of the options that every portal visitor seeking to set up a company should consider is Nevis, a real pearl in the world of offshore business, where creditors will find it really hard to get to you. Look at the facts and see for yourself.

General information about offshore companies in Nevis: requirements and conditions

According to economists, a jurisdiction’s economic status is determined by the primary activities that directly affect the stability of the local economy. 

Here, the lion’s share of the GDP belongs to two sectors: tourism and the offshore sector. It should also be noted that Saint Kitts and Nevis together form the strongest electronics sector in the East Caribbean region. Agricultural trade is developing in the Federation – many goods are exported to the United States, for example. If we consider development by region, the Nevis offshore jurisdiction is stable across almost all sectors.

The classic, internationally known IBC is known in Nevis as the Nevis Business Corporation — governed by the Business Corporations Ordinance, as amended in 2011 and 2016. Under modern substance regulations, such legal entities are required to keep records of financial transactions and, if necessary, be able to prove the company’s current financial position. However, there is no requirement to file the accounts for audits.

Next, we will consider how the registration of an offshore company in Nevis is carried out and what requirements must be met.

Statutory Capital of the company

Corporate legislation does not establish minimums or restrictions on the share capital. You can declare any amount from 1 USD, but the standard amount is 100,000 USD. At the same time, the company must issue shares with a par value of 1 USD totaling 100,000 shares. The declared statutory capital of the corporation can be deposited at any time.

Business structure

According to the law, foreigners are allowed to form any type of offshore company in Nevis, such as an LLC, but in terms of sheer numbers, the most popular is the Nevis Business Corporation, colloquially known as the Nevis International Business Corporation. A less popular, but more modern structure is Nevis LLC, similar to US-style limited liability companies. In both cases, any type of commercial activity is allowed – including regulated or licensed activities, subject to obtaining a special license.

Directors and shareholders

For 1 person, the director and shareholder can be the same legal entity/individual, combining obligations. Offshore Nevis does not impose any requirements regarding the tax residency or nationality of founders/directors. The only exception to this rule would be residents of countries that are subject to international sanctions.

Reporting and audit

Not needed. By law, all of the “offshore” legal entities are exempt from the need to audit financial statements and/or prepare annual financial statements for filing with the tax authorities.

Taxes and duties

0% corporate tax, capital gains tax, dividends, royalties, and interest income. Offshore Nevis assumes only annual payment of duties to the state treasury in the amount of 220 USD.

Attention! Nevis has double-taxation treaties with certain countries, which help enhance its standing in the international community.

Who Typically Uses Nevis Companies? 

Companies in Nevis are frequently used by global entrepreneurs in digital businesses, consultants, investors, e-commerce operators, and globally mobile individuals for an effective corporate structure.

Examples of the most common uses include:

• Consulting businesses internationally;
• Companies that hold investments;
• Companies that hold intellectual property rights;
• International e-commerce operations;
• Trading across borders;
• Planning estates and succession plans;
• Strategies for protecting assets

Procedure for creating an offshore company in Nevis

Registration of an offshore company includes selecting a name that must include a suffix indicating its structure. For example, limited corporation, BV, AG, SA, and others. Further, a corporate charter and a memorandum are drawn up, and one or more directors are appointed by the first meeting of shareholders or by the incorporators. For Nevis IBC or Nevis LLC formation, all legal entities must have a registered office address in Nevis and a licensed registered agent. Contact us for a quick remote registration of your offshore company in Nevis.

Foreign exchange control

Absent! Your Nevis company can move funds around the world in any currency without restrictions. This is another incentive from local authorities to attract new flows of investment capital. 

Forced Heirship

There is none. If you live in a country that limits your ability to dispose of assets as you see fit after your death, you can be sure that Nevis will only recognize its local laws on succession matters.

Requirements for financial documents in accordance with the new OECD rules

Foreign investors should remember that the company’s directors are responsible for retaining the primary accounting documents for 7 years and for informing their registered agent of the place of storage of such documents. In this case, the Nevis offshore company will be able to prove its financial condition and active status.

Shareholders meetings

They can be held anywhere and are typically held remotely, by conference call or Zoom.

Other requirements for registration of an offshore company in Nevis

Forming any Nevis company within the “offshore Nevis” jurisdiction implies compliance with applicable regulations. Every investor who wants to register an offshore company in Nevis has the right to complete a simple online company formation process. 

Our lawyers point out that the following legal aspects should be kept in mind here:

• You cannot open an offshore company in Nevis on your own directly with the Registry, as the Registry only deals with licensed agents who are trained to help you;
• The latter must be certified in accordance with applicable law and have its own office on the island;
• IBC and LLCs are prohibited from providing registered agent services themselves, as well as from owning any property in Nevis unless special permission is granted;
• The reservation of the company name is also carried out by the agent using a special online system;
• Legal entities of foreign origin are not allowed to conduct commercial activities in the country, except for opening bank accounts, without registration;
• corporate information is not subject to public access;
• The beneficiary has the right to use a professional director service;
• A shareholder can be either an individual or a legal entity;

Nevis offshore companies operating in the banking and credit industry, construction, insurance, and education are subject to compulsory licensing. Investment companies and funds, as well as organizations working with loans, must obtain a license.

Offshore Nevis allows you to use your agent’s legal address as the company’s registered office – this is where corporate notifications will be sent. The second option is to open your own office (rent or buy).

Nevis vs Other Offshore Jurisdictions

While Nevis may be a very attractive location to form an offshore company, it will likely not meet all the needs of your business. The attractiveness of a particular offshore center, in addition to providing some level of asset protection, privacy, and low-cost compliance requirements, lies in the fact that each offshore jurisdiction has its own unique characteristics. These could include operating costs, reputation, and overall “long-term” international strategy, which are important factors when determining whether a particular jurisdiction meets the needs of your business.

How can registering an offshore company in Nevis help you avoid high taxes?

When starting a business for tax optimization and international tax planning, it is important to consider the beneficiary’s current residence. For example, if you manage the company from a country with high tax rates and the main income will be directed here, the company will be regarded as a resident in that other country, so all the benefits of Nevis taxation will be nullified. Therefore, it is especially important to properly structure a business to take full advantage of the offshore Nevis jurisdiction.

Typically, Nevis companies are created for trust and investment activities, electronic commerce, or work in the financial sector. The law of the jurisdiction contains fairly strict provisions for protecting the assets of legal entities from creditors, lawsuits, and government agencies. If we compare offshore Nevis with other similar states, international asset protection lawyers agree that Nevis is one of the two jurisdictions in the world with the strongest asset protection laws—the other being the Cook Islands.

With regard to taxation, the following rules apply to offshore companies in Nevis:

• 0% income tax;
• 0% inheritance tax and capital gains;
• 0% personal income tax (personal income tax);
• 0% on dividends, capital distribution;
• 220 USD annual fee.

It is quite easy to maintain an active company status here. The approximate cost of the annual service of a Nevis is typically around 2,000 USD, or less in some cases. If necessary, you can always order additional services from our experts, as well as full legal support for your new enterprise via reputable local law firms.

We would also like to draw your attention to the fact that every Nevis offshore company has the right to independently set the dates and frequency of shareholders’ meetings. This moment is spelled out in the company’s charter by the general agreement of the owners. It is not necessary to visit the state – all procedures are carried out remotely, with courier delivery of documents.

Compliance Requirements for Nevis Companies

While flexibility is provided to companies operating on Nevis, compliance with international regulations and local laws is required for owners.

This can be an example of some of those that are included:

• Maintain accounting records;
• Keep the information about the beneficial owner(s);
• Work through a licensed registered agent;
• Observe AML & KYC protocols;
• Compliance with Economic Substance Requirements, if necessary;
• Meeting your obligation to report taxes in your country of residence.

Real-World Example: Why an International Entrepreneur Chose Nevis

A recent Q Wealth client, an international e-commerce entrepreneur who operates in both Europe and Asia, created a Nevis company as part of their overall strategy to protect and conduct international business and to plan for future growth by establishing a global corporate entity.

The Nevis company established a clear separation between clients’ personal and business assets and provided them with a single point from which they could operate and manage all of their European- and Asia-based businesses. The company’s ability to grow and expand into new markets was enhanced due to its flexibility as a corporate vehicle.

Ongoing compliance obligations were managed easily and consistently by the client because the company had been properly established, maintained, and appropriately advised.

Conclusion

Entrepreneurs, investors, and globally minded companies continue to look to Nevis for its flexibility, sound regulations, privacy, and business-friendly environment.

You cannot create a tax planning project by setting up an offshore company. Businesses will need to comply with all local regulatory bodies, tax authorities, and/or economic substance rules. Before creating a structure, it is highly recommended that you get professional advice.

All of the previously stated reasons why you may want to create an offshore company could be valuable if you create a proper Nevis company as part of an overall international business plan.

Frequently Asked Questions