What Type of Company Should You Register in Nevis: an LLC or an IBC?

Part of the Federation of St Kitts and Nevis, Nevis has its own financial service sector and its own corporate legislation that is more beneficial for foreign company owners than the legislation of St Kitts. This is why we are going to talk about registering a company in Nevis rather than in St Kitts and Nevis.

Nevis is not the most popular offshore jurisdiction in the world but it has a good international reputation. It has been able to avoid all sorts of scandals that some other offshore financial centers have had to go through. ‘A reputable offshore jurisdiction’ does not have to be an oxymoron: Nevis can be rightfully described by this phrase.

The Federation obtained independence from Great Britain in 1983 but it remained a member of the Commonwealth of Nations. (Initially, it was a Federation of St Kitts, Nevis, and Anguilla but Anguilla decided to return to Great Britain and be its overseas territory again.) This is a very nice status, we must admit. On the one hand, the Federation is independent from London. On the other hand, it can always count on Britain’s support because it’s part of the Commonwealth. Interestingly, quite a large number of residents of British overseas territories (such as the BVI or Caymans, for example) choose to relocate to Nevis. Probably, living in an independent country gives them some warm feelings.

In addition to that, Nevis-based companies have vast experience in cooperating with US companies. American business people are well acquainted with Nevis-registered LLCs and American lawyers admit that Nevis is one of the best jurisdictions in the world as far as legal protection of assets is concerned. Here you can find a lot of information about the asset protection mechanisms that you can find in Nevis.

Key advantages that Nevis offers

  • Political stability in a combination with the Government policies of promoting the financial sector.
  • A well-regulated jurisdiction with adequate guarantees.
  • No personal or corporate taxes are levied on incomes earned outside Nevis.
  • The companies registered in the jurisdiction have to keep the records but they are not obliged to submit any reports or go through audits.
  • There is no currency control in Nevis and capital can be freely repatriated from the jurisdiction.
  • A corporate bank account for a Nevis-based company can be opened in Nevis and in other countries as well.

A Limited Liability Company in Nevis

An LLC created in accordance with the Nevis corporate legislation is a legal entity with its own rights and obligations that are separate from the rights and obligations of the LLC founders and managers. Therefore, the LLC is liable for the company’s debts and other obligations rather than its owners. Company founders can manage it or they can hire an external manager: both opportunities are available.  .

Key advantages of a Nevis-based LLC

  • An LLC in Nevis is a pass-through entity for taxation purposes.
  • An LLC is extremely flexible in conducting business operations. It is an ideal form of company ownership for small businesses. Besides, LLCs are often used for holding assets.
  • There is no publicly available register of company owners, directors, or managers.
  • No corporate formalities such as General Meetings, Minutes, etc. need to be observed.
  • The assets written in the name of an LLC become the property of the company: they do not belong anymore to the company founder who passes the assets to the LLC. This means that the company manager’s role is similar to that of a trustee but he or she does not have so many restrictions. For example, unlike a trust, an LLC can engage in active business operations.
  • An LLC can be structured in a way that is optimal for control and interest distribution between the company founders. Wherever the assets of a Nevis-based LLC are located, they are under exclusive jurisdiction of the Nevis courts of law. A foreign court decision is invalid and forced repatriation of assets is impossible.
  • A creditor cannot seize any share of company ownership if the LLC fails to pay back the debt. All creditors have is payment orders that do not give them any ownership or business control rights. A new member can be added to an LLC but only with consent of existing members.

A Nevis-based LLC is an efficient instrument of asset protection because the form of company ownership cannot cause any fiscal problems. It is transparent for the tax authorities and it is more flexible as far as asset protection is concerned compared to a corporation. An LLC is also a type of company that is well-known in most countries of the world, unlike a trust, for example.

An LLC can be merged with other LLC or other types of companies to solve some complex business planning tasks. The simplicity and the transparency of the company structure make LLCs desirable clients for banks all over the world. LLCs go through the due diligence procedures very fast and opening a corporate bank account is not a problem for a Nevis-based LLC.

An International Business Corporation in Nevis

An International Business Corporation (IBC) was the first form of company ownership that Nevis offered to foreign investors back in 1984. The corresponding legislation had been drawn up by American lawyers based on the corporate legislation of the state of Delaware. The IBC has stood the test of time and it offers all the advantages that a traditional corporation boasts. This form of company ownership is for those who would like to have a company owned by a large number of shareholders.

Corporations are recognized all around the world and everybody clearly understands that a corporation is a legal entity distinct from the shareholders. In Nevis, you will also find a high level of confidentiality as well as a fast and efficient company registration process if you decide to register an IBC there.

Key advantages of a Nevis-based IBC

  • A Nevis-based IBC is entitled to engage in any legal business operations around the globe. Some restrictions apply only if business is done in Nevis.
  • The company name can be in any language and it can contain suffixes used in English-speaking countries as well as non-English-speaking countries: Inc, S.A., BV, SARL, KFT, and so on. However, the name has to be written in Latin letters.
  • Any person or legal entity from any jurisdiction can be a shareholder in a Nevis-based IBC. It is legal if an IBC has only one shareholder and/ or only one company director.
  • No taxes are payable in Nevis.
  • The company ownership and management details are not available to the public.
  • You can re-domicile your IBC to Nevis and from Nevis. Besides, urgent re-domiciliation is possible.
  • The documents are legalized in accordance with the Hague convention.

With qualified professional assistance, you can register an IBC in Nevis and open a corporate bank account for your company within a couple of days.

What form of company ownership should you choose if you would like to register an offshore company in Nevis? The answer will depend on your goals and objectives as well as the results that you want to achieve.