St. Kitts and Nevis company formation
Basic facts regarding St. Kitts and Nevis
St Kitts and Nevis is a Federation of two islands with a combined area of about 261 sq km and a population of 50, 675 (June 2007 estimate), of which roughly seventy-six (76 %) per cent resides in St. Kitts. The Federation is situated about 225 miles southeast of Puerto Rico in the Eastern Caribbean. Basseterre is the capital of St Kitts and the administrative capital of the Federation.
St. Kitts and Nevis is a common law jurisdiction which has a stable and democratic system of government (constitutional monarchy with Westminster-style parliament).
St. Kitts and Nevis taxation
Qualified companies enjoy full exemption from taxes on corporate profits for up to 15 years. Corporate tax is 35% of net profits. This tax does not apply to exempt companies or to enterprises that have been granted a tax concession. Individuals and ordinary companies remitting payments to persons outside of St Kitts must deduct 10% withholding tax from certain services, but this tax does not apply to exempt trusts, limited partnerships, companies or foundations.
Foundations can elect to establish tax residence and pay 1% corporation tax. This may be beneficial to the overall structure, for example, to take advantage of double tax agreements.
Offshore business in St. Kitts and Nevis
Offshore companies
With most of the offshore financial activity concentrated in Nevis, it has developed its own offshore legislation. As of November 2009, Nevis has one offshore bank, 106 licensed insurance companies, 11,809 international business companies (IBCs), 4,511 limited liability companies (LLCs), 1,026 international trusts, 83 multiform foundations (used for estate planning, charity financing, and special investment holding arrangements), and 58 registered agents. Figures from 2009 indicate St. Kitts has 1,780 exempt companies and foundations, 100 captive insurance companies, four trust service providers and 31 corporate service providers. Internet gaming entities must apply for a license as an IBC.
Nevis multiform foundations
The Nevis Multiform Foundation is an attractive asset protection tool which offers unique planning advantages. It is a legal entity which can be seen as an umbrella within which [subject to given rules that define the structure] a subscriber can personally design their form of Foundation.
With a single filing an entity can function as:
1) A corporation
2) A trust
3) A limited liability company
Each Nevis Foundation has a stated Multiform, which means that the constitution of the Foundation states whether it should to be treated as a trust, a corporation, a limited liability company or an ordinary Foundation. Whether an entity is designated to function as a corporation, a trust or a limited liability company would also be determined by the registration filed with the Registrar.
Citizenship by Investment Programme
For more information on Nevis economic citizenship program, please see here.
Main features of St. Kitts and Nevis entities
Exempt Corporations are governed by the Companies Act, 1996 in St. Kitts and IBC‟s are governed by the Nevis Business Corporation Ordinance, 1984, in Nevis. The provisions of the each Act set out the requirements for incorporation of an IBC/exempt company.
Trusts can be either local or international and are governed by the Trusts Act, No. 23 of 1996. Both Ordinary and Exempt Trusts must be registered by the Registrar of Companies. The Register is not open for inspection except that a trustee of a trust may authorize a person to inspect the entry of that trust on the register.
Offshore banking in St. Kitts and Nevis
As at June, 2008, St. Kitts and Nevis had six (6) commercial banks, one (1) international bank (a subsidiary of a commercial bank), and one (1) finance company. As at 2007, the total asset size of commercial banks was E.C. $3.7 Billion. With regard to persons carrying on securities business, there were ten (10) broker dealers (traders & underwriters) with eleven (11) registered offices.
International cooperation
St. Kitts and Nevis has executed Tax Information Exchange Agreements with Aruba, Australia, Belgium, Canada, Denmark, Faroe Islands, Finland, France, Greenland, Iceland, Liechtenstein, Netherlands, Netherlands Antilles, New Zealand, Norway, Portugal, Sweden, United Kingdom.
[Sources: United States Department of State Bureau for International Narcotics and Law Enforcement Affairs; Caribbean Financial Action Task Force; Organisation for Economic Co-operation and Development]
Offshore companies formation
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