Nevis has a stable economy, making it an attractive destination for expanding your business. The jurisdiction also offers numerous incentives, such as tax advantages and a robust legal framework that provides a strong foundation for offshore company formation.
Moreover, Nevis’ firm is also a perfect vehicle for accessing international banking and investment markets, as well as for protecting your assets. Whether you are an investor or an entrepreneur, this guide will help you understand the benefits, requirements, and the process of company registration in Nevis. Let’s get started and learn in detail.
Why Should You Form a Company in Nevis?
A Nevis company can open avenues for international trade without any hassle. Aside from this, there are numerous other benefits to consider:
Numerous Tax Treaties: Nevis shares a strong relationship with multiple nations across the globe. The jurisdiction has signed numerous double taxation agreements with several Caribbean Community (CARICOM) countries, as well as specific treaties with countries such as the United Kingdom, Canada, and more. All these treaties help reduce the tax burden and enable information exchange by the countries that are party to the treaty.
Asset Protection: Nevis is known for its robust asset protection laws. By setting up a Nevis trust, you can transfer your assets and separate them from your personal assets. Moreover, the Nevis International Exempt Trust Ordinance (NIETO) does not recognize foreign court judgments, which enable you to bypass the heirship laws of your home country.
Favorable Tax Framework: Nevis has a territorial tax system. That means only the income earned from operations within the country is subject to taxation. This allows foreign-sourced income to be absolutely tax-free as long as kept in the jurisdiction. However, this does not exempt you from your home country’s tax laws. You would have to pay the tax there if you repatriate the income.
Citizenship by Investment Program: You can access offshore opportunities by obtaining citizenship through its investment program. The jurisdiction has no restrictions on having dual citizenship. Both residency and citizenship offer generous incentive packages and the ability to reside in most other Caribbean countries.
What are the Popular Company Structures in Nevis?
Choosing the right structure is essential to getting your firm off to the right start in Nevis. Here are some of the popular structures that an offshore company can use:
Nevis Limited Liability Company: Also known as Nevis LLC, it is one of the common company structures that a firm can use. Its major benefit is the pass-through taxation, which allows you to pass the profits and losses. This helps you avoid double taxation. On top of that, a limited liability company is a separate legal entity that offers limited liability to the owners. Thus, making them liable only for the amount they paid.
Nevis International Business Company: Also known as Nevis IBC or Nevis business company, it is one of the most sought after structure for company setup in Nevis. This type of structure is easy to set up, as it requires only one shareholder and one director. These two can also be the same person. On top of that, you can enjoy numerous tax benefits as an international business company is typically exempted from corporate income tax, capital gains tax, and withholding tax. All of these advantages make it a popular choice for starting your business operations in Nevis.
Nevis Multiform Foundation: It is one of the modern foundation structures unique to Nevis. A multiform foundation in Nevis is governed by the Nevis multi-form ordinance. This structure can change its legal form from a foundation to a trust foundation, a company foundation, an LLC foundation, and so on. Moreover, foundations formed in other jurisdictions can transfer to Nevis and operate as multi-form foundations.
How to Set Up an Offshore Company in Nevis?
Forming a business in Nevis is not an easy task and requires adherence to numerous regulations. You can follow the steps below to set up a firm in Nevis:
Choose a Business Consultant
Complying with the requirements can be overwhelming. That’s why hiring consultants can make it easier for you. Consultants such as Business Setup Worldwide are well-versed with the local rules and requirements. They ensure your firm remains compliant with the rules and faces no obstacles.
Select a Company Structure
Before going forward with company formation, it is ideal to choose the right company structure. Nevis has numerous popular structures, as mentioned above. You can choose a limited liability company or an international business company to begin international trade.
Decide on a Business Name
You must select a business name for your firm based on the legal requirements. The name must not be a copy of another firm, must not be misleading, and so on. Before finalising the name, you must ensure that it is not already registered in the Nevis company database.
Fill Out the Application Form
Once you have decided on the business name, fill out the accurate details in the application form. Typically, you require the company’s name, the company’s registered address, the name and contact details of the shareholders/directors, and so on.
Submit the Documents
You must draft and submit the documents, such as the Memorandum of Association, Articles of Association, business plan, and so on. The required documents can vary depending on the company structure you choose.
Wait for approval
Once you have submitted the application form and the documents, pay the required fees. Once the authorities approve your company, you can begin operations.
Nevis offers numerous growth opportunities for businesses to expand. Setting up a firm in Nevis is one such option that allows you seamless access to the international market. But following the legal requirements can be tough for any new business owner. It is advisable to seek legal guidance from an expert and move forward with your company setup.
