Nevis, an island located in the northeastern part of the Caribbean, is popular in the business world for its favourable taxation and asset protection regulations. Due to its attractive business environment and accessibility for various company structures, the island serves as a major global financial hub.
Why should you structure a Nevis legal entity?
- Attractive business environment
- Strong asset protection laws
- Strategic location
- Availability of emergency re-domiciliation
- Fast incorporation
- Flexibility in company structure
Different legal entities in Nevis — their key benefits and formation process
Nevis Limited Liability Company (LLC)
The Nevis LLC is a legal entity distinct from its managers and members, who are not personally accountable for the LLC’s debts and liabilities. It is a business entity that provides an option to those who might use corporations or partnerships.
For an LLC formed in Nevis, any lawful business purpose is acceptable. It may be used for any legal business operation or professional activity, which includes financing arrangements for US or foreign businesses, real estate holdings and as a vehicle for operations or investments for global trusts.
What are the key benefits of a Nevis LLC?
- There is no requirement for members or managers to provide information to the public.
- Ideal for holding assets, and the operating agreement is flexible.
- Company records may be maintained in any location globally.
- Nevis LLC does not require the appointment of officers, allowing for a flexible management structure.
- There is no initial capital requirement to incorporate a Nevis LLC, and it is not necessary to issue any membership interests to start operations.
How to set up a Nevis LLC
- Choose a name for the LLC that is not currently in use and follows Nevis naming guidelines.
- Appoint a registered agent in Nevis who will receive legal and tax documents on behalf of the company.
- The LLC must maintain a registered office in Nevis, though a physical presence is not necessary.
- Submit the Articles of Organisation to the Registrar of Companies.
- Pay the registration fees and annual renewal fees.
Nevis Business Corporation (NBC)
A Nevis Business Corporation (IBC) is equivalent to a corporation formed under the Nevis Business Corporation Ordinance (NBCO). The NBCO permits the incorporation of a corporation to engage in any legal business.
Nevis corporations are separate legal entities with distinct rights and obligations from their shareholders. Moreover, Nevis has legal provisions for confidentiality and a fast registration process.
What are the key benefits of NBC?
- NBCs are free from taxation on the income generated outside the country.
- The corporation can be set up to protect the identities of its owners, as there is no public register of NBCs.
- NBCs may be managed abroad (by directors or a management company). Additionally, it does not require physical presence on the island.
- Individuals of any nationality and from any country can serve as shareholders, officers and directors, as there is no residency requirement.
- There is no requirement to file corporate financial reports or audits.
How to set up an NBC
- Work with a registered agent in Nevis, like Bolder Group, to streamline the legal requirements of NBC incorporation.
- Choose the NBC name and comply with Nevis’ naming requirements to ensure it is distinct from existing corporations.
- Draft and submit the NBC’s articles of incorporation, which contain important details about the NBC, including its purpose and the rights and obligations of shareholders.
- Appoint at least one director, one shareholder (companies or natural persons) and a local registered agent licensed by the Nevis Island Administration.
- The NBC must keep an office address in Nevis, but the main office can be located anywhere.
- Pay the registration fee to the government.
- Open a bank account in the corporation’s name.
Nevis IBC vs. Nevis LLC
|Ownership||Shareholders own shares of the corporation||Members own membership interests|
|Management||Managed by a board of directors elected by shareholders||Managed by its members or appointed managers|
|Taxation||Not subject to Nevis income tax||Not subject to Nevis income tax|
Other structure options in Nevis
- Nevis Exempt Trust: A trust exempt from Nevis income tax and protects the beneficiaries’ assets. The trust may be established for a particular objective or the benefit of specific individuals or charities.
- Nevis International Exempt Trust: A more flexible trust type that can be utilised for asset protection, estate planning and tax reduction. The trust may hold various assets and may have non-Nevis residents serving as its settlors, beneficiaries and trustees.
- Nevis Limited Partnership: A partnership in which one or more limited partners provide capital but have limited liability and one or more general partners operate the business and have unlimited liability. The partnership is not subject to the jurisdiction of Nevis.
- Nevis Multiform Foundation: A hybrid business entity with features of both trusts and corporations. The foundation is a separate legal person with the authority to own assets, enter into agreements and conduct business. It can have beneficiaries, council members and officers, and a charter regulates it.
Bolder Group as your partner in forming a company in Nevis
Bolder Group has an active presence in Nevis. Our team of experts can streamline the company formation process for our clients and those looking to establish an LLC, NBC or other legal entities on the island.
We can assist you with setting up your chosen business structure remotely. Get in touch with Bolder Group Nevis today to get started.