Nevis Types of Company

Back to Nevis Information, Business, Taxation and Investment

On this Page:

- Nevis International Business Company
- Nevis Limited Liability Company
- Nevis International Exempt Trust
- Nevis Multiform Foundations Ordinance

Nevis International Business Company

This type of company is formed under the Nevis Business Corporation Ordinance, 1984 as amended, particularly in 2000, and is suitable for use as a holding company or an investment company. The legislation closely follows Delaware law and is useful to those familiar with this legislation. Characteristics of the IBC are as follows:

• Nothing required to be maintained in the place of incorporation except the Registered Agent’s details.
• Total tax exemption is automatically provided by law for IBC companies.
• No minimum capital required.
• Prior approval required of company name. Some words are sensitive eg Assurance, Bank, Trust etc. Must end 'Limited', 'Corporation', 'Incorporated', 'Societe Anonymne' , Gesellschaft mit beschraenkter Haftung or their abbreviations.
• Incorporation takes one or two days.
• Shelf companies are available.
• Capital duty is USD200 based on an authorised share capital of 1,000 shares at no par value or on USD100,000 of par value shares.
• The minimum number of shareholders is one.
• Bearer shares and shares of no par value must be held by a custodian.
• The minimum number of directors is three, however, if there are fewer than three shareholders then there may also be fewer than three directors.
• A secretary is required who may be a company.
• There is no requirement for a registered office, but there must be a registered agent.
• Information available publicly consists of the articles of incorporation and the name of the registered agent.
• There is no requirement for the production or filing of accounts, and no annual return is required.
• Annual fees amount to USD200.
• IBCs do not have access to St. Kitts and Nevis double tax treaties.

Back to top

Nevis Limited Liability Company

Nevis LLCs are formed under the Nevis Limited Liability Company Ordinance, 1995, whose features include:

• No corporate tax, income tax, withholding tax, stamp tax, asset tax, exchange controls or other fees or taxes are levied on assets or income originating outside of Nevis;
• Members may be individuals or business entities of any nationality or domicile; there may be a single member;
• No annual or other reports are required;
• Foreign Limited Liability Companies or other business entities may re-domicile to Nevis;
• Limited Liability Companies may have limited life.
• The name of an LLC must end in one of the following: "Limited Liability Company", "LLC", "L.L.C.", "LC" or "L.C.".
• Shelf companies are available immediately; the formation of a company normally takes 2 to 4 working days.

Back to Top

Nevis International Exempt Trust

These trusts are formed under the Nevis International Exempt Trust Ordinance of 1994, as amended to September 2000. The Trust Ordinance includes special provisions to enhance the use of Nevis as a preferred jurisdiction for the establishment of Asset Protection Trusts.

Highlights of the Trust Ordinance include:

• Exemption from all forms of Nevis taxation and exchange controls provided that transactions take place only with non-residents;
• The trustee may be either a trust company licensed to do business in Nevis or a company incorporated under the Corporation Ordinance;
• The proper law may be the law of Nevis or the law of another jurisdiction;
• The rule against perpetuities does not apply;
• Forced heirship rules are specifically excluded;
• Spendthrift and charitable trusts are permitted;
• There is a USD25,000 bond requirement prior to the commencement of an action or proceeding against trust property;
• There is no registration requirement other than for the Trust's name, name of Trustee and the registered office address;
• Settlor and Beneficiary must be non-residents and may be the same person;
• One trustee must be a Nevis offshore company or a trust licensed company;
• Protectors are allowed for and may be the same person as the Settlor and Beneficiary of the Trust;
• An IET is valid and enforceable notwithstanding that it may be invalid according to the law of the Settlor's domicile or residence or place of current incorporation;
• The Trust is not considered fraudulent if settled up to 2 years after the date of the creditor's cause of action;
• The creditor must prove the intent of the debtor to defraud with "clear and convincing" evidence;
• The Statute of Queen Elizabeth is excluded.

Back to Top

Nevis Multiform Foundations Ordinance

The Multiform Foundations Ordinance came into force on October 1st 2005. It introduces a flexible hybrid multiform of foundation into the Nevis international financial services regime.

The Nevis Multiform Foundation is a legal entity shell into which a subscriber can self-design the form of the Foundation, subject to given rules that define it. Therefore, each Nevis Foundation will have a stated multiform, meaning that the constitution of the foundation will state how it is to be treated: whether as a trust, a company, a partnership or an ordinary foundation.

Through the multiform concept the stated identity of the Foundation can be changed during its lifetime, thus allowing for greater flexibility in its use and application.

The Ordinance provides for other entities to be converted or transformed, continued or consolidated or merged into a Nevis Multiform Foundation. Therefore, an entity incorporated outside of Nevis can be transformed into a Nevis Foundation; an existing Nevis entity can be converted into a Nevis Foundation; and any two or more entities from outside or within Nevis can merge into a Nevis Multiform Foundation.

The Ordinance provides for a balance between privacy and transparency and also provides for healthy corporate governance. In light of this, the Ordinance anticipates that Nevis Multiform Foundations will be used for estate planning, charity, financing and special investment holding arrangements.

The Ordinance has a section on forced heirship, making it clear that any Multiform Foundation governed by the laws of Nevis cannot be made void, voidable or liable to be set aside, or defective in any manner by reference to the law of a foreign jurisdiction.

The Ordinance provides that a Foundation can become tax resident in Nevis, subject to an annual fee of USD1,000. The Multiform will then be subject to Corporation Tax at a rate of 1% of net income (net profits) with a minimum tax payable of USD1,000 per annum. This is particularly important for some jurisdictions, and again enhances the flexibility of these entities.

Back to Top

Back to Nevis Information, Business, Taxation and Investment