The Federation of St Kitts and Nevis is a union of two former British colonies in the Caribbean: the island of St Kitts (officially, the island of Saint Christopher) and the island of Nevis sitting about 3 kilometers away from St Kitts. The country occupies no other Caribbean islands. The neighboring island of Anguilla used to be part of the Federation for a while but the people of Anguilla held a referendum and decided to return under British rule. St Kitts was among the first Caribbean islands colonized by Europeans and it was among the last islands to become independent from Great Britain in 1983.
St Kitts and Nevis is the smallest federative state in the world in terms of its territory as well as population. It is a true federation in legal terms, however. Each of the islands is a self-governed territory to a large degree and the legislation of St Kitts is different from the legislation of Nevis. From the point of view of an international entrepreneur wishing to establish an offshore company, Nevis looks more attractive than St Kitts does. St Kitts is the larger of the two islands, it has a better-developed infrastructure and local economy, and the capital of the country as well as the Parliament and the Government are located on St Kitts.
Nevis, on the other hand, has legal frameworks that are better adapted to the needs of international business people. The island focuses on providing offshore services and it has been a popular offshore jurisdiction for decades. Nevis has gained recognition as a reputable offshore jurisdiction and it has probably done so at the expense of its local economy. You can find nice little hotels on the island and some fantastic Caribbean beaches but life is more comfortable in St Kitts overall.The country administers a citizenship-by-investment program and a foreign national can become a citizen of St Kitts and Nevis if he/ she purchases a piece of real property in the country.The development project has to be approved by the Government for citizenship-by-investment purposes and all such projects are located on St Kitts. This said, there are other financial routes to citizenship of the country too.
Therefore, if you would like to relocate to the Caribbean citizenship program, finding a place on St Kitts would be a better idea than settling down on Nevis. However, if you would like to register an offshore company, you should prefer Nevis to St Kitts. Below we discuss the main advantages that a foreign entrepreneur can gain by incorporating in Nevis and the reasons to register an offshore company in this jurisdiction.
First, the company owners’ confidentiality is well protected in Nevis. We have to make a disclaimer before we go on, however. Total anonymity of the company owner is a thing from the past: it is impossible to conceal the company ownership information from everybody in today’s world. At the same time, the names of the company founders, directors, and officers do not have to be disclosed to the local government. Nevis keeps no public Business Register thus far and the names of the company owners are known only to the Registrar. Nevis may be forced to make the company ownership information publicly available in the future because the global de-offshorization continues. As things stand for now, this information remains private.
Second, Nevis is a great place for asset protection. By writing your property in the name of a Nevis-registered company, you can safeguard the property from any legal claims made in other countries. If somebody wants to sue a Nevis-based company, he or she will have to do it in Nevis: the local judges pay no heed to any court decisions made in foreign countries. Now, filing a lawsuit in Nevis costs a pretty penny and your creditor or your greedy ex-spouse, for example, will have to think twice before taking your Nevis-registered company to court. If he/ she fails to win the case, he/ she will lose a considerable sum of money.
Besides, you can set up a Limited Liability Company in Nevis with a charter capital as small as one dollar or a hundred dollars. An LLC registered in Nevis is a much more powerful instrument of asset protection than an LLC registered in St Kitts. The corporate legislations differ in the two parts of the Federation and the legislation of the smaller island makes it one of the best countries to register an offshore company without doubt. What is more, an LLC can be registered in the name of only one person in Nevis. This opportunity is rarely found in onshore countries. In addition, you can establish an International Exempt Trust in Nevis and it can prove an even more secure asset protection instrument.
The third reason why you should consider registering an offshore company in Nevis is its beneficial tax system. No taxes are levied on the global income made by the companies registered in Nevis. We have to issue two warnings at this point, however. First, you will have to pay the taxes in the countries where the income is obtained anyway. Second, you do not want to engage in business operations in Nevis and make profits from business dealings on the island. Locally earned income is taxed and it is taxed heavily. If you make money in jurisdictions other than Nevis, your company maintenance costs are going to be close to zero. They are not going to be zero costs exactly as there is an annual company registration fee to be paid. But the fee is comparatively low and a Nevis-based company can help you save on taxes.
The fourth advantage that Nevis offers is the ease of company formation. About 2,500 companies are registered in Nevis (IBCs and LLCs) and over a hundred trusts. The local company registration officers are very knowledgeable and they work in a fast and efficient manner. Incorporating a company in Nevis is a matter of a few days. You are likely to need some professional assistance if you would like to set up a company in Nevis.