Why Nevis Offshore Services

Background

Nevis and its sister country St Kitts, form the Independent Federation of St Kitts and Nevis. They are located in the Leeward Islands approximately 1,200 miles southeast of Miami, Florida. Although an independent two-island nation, they retain many traditions of the British, who settled and developed them. St Kitts was founded in 1623, it was the first British Colony in the Caribbean. Nevis was considered "the richest jewel" of the Caribbean and St Kitts was known both as the "Mother Colony" and the "cradle" of the Caribbean.

Admiral Horatio Nelson, arguably Britain's finest naval commander of all time, married a Nevisan, made Nevis the center of British naval operations in the Western Hemisphere, and considered it the most lovely place he'd ever lived. Alexander Hamilton, the first Secretary of the Treasury of the United States of America, and a signer of the Declaration of Independence and participant in the drafting of the U.S. Constitution, was born in Charlestown, the current capital of Nevis.

Miles of beaches facing onto aquamarine and turquoise seas encircle the island. The natural beauty of Nevis is breathtaking. Tourism is a major revenue source and the Nevis Four Seasons Resort has recently been rated the Number One Resort in the world for the third straight year in a row.

Nevis was sighted by Christopher Columbus in 1493 and settled by the British in 1623. Even today, cricket is a favorite pastime, the motorists drive on the left, and the official language is English. Formerly one of the West Indies Associated States, it became an independent state within the British Commonwealth in 1983. Nevis is a democracy based on the British parliamentary system and has an elected local assembly.

The legal system is based on English common law, served by a high court of justice and court of appeals. A Nevis offshore company is known as an International Business Corporation ("IBC") and although formed in a British Commonwealth country, corporate structure is based on the USA State of Delaware model.

The East Caribbean dollar is the official currency although U.S. dollars are accepted anywhere. The East Caribbean dollar is fixed to the United States dollar at EC $2.70 per US $1.00 and therefore a stable rate of exchange has been in force for many years. Nevis banks allow for accounts to be held in either U.S. or Caribbean dollars.

Nevis offers excellent communication facilities with direct dialing to Europe, the U.S. and Canada. Cable and Wireless operates the local telephone company and now provides ADSL internet service.

Nevis offshore companies are exempt from Nevis taxes on all income, dividends or distributions not earned on the island. Indeed the government collects no income taxes but relies primarily on indirect taxes and import duties.

A low-key economic promotional program authorized by the 1984 "Citizenship Act" offers nationality and a passport in return for a $200,000 investment, usually the purchase price of a seaside condominium and certain "fees." Citizenship for the investor and spouse are included in the deal. (A less expensive route to citizenship is marriage, since St. Kitts & Nevis is one of the few countries that gives instant citizenship upon marriage to a spouse of either sex.)

The Nevis Business Corporation Ordinance

A Nevis offshore company is called an International Business Corporation or "IBC" and it is TAX EXEMPT on all income earned from anywhere in the world accept Nevis island. An IBC need NOT file annual returns. Corporate records may be kept anywhere in the world and annual general meetings or meetings of the Board of Directors are NOT required to be held in Nevis. An IBC has a number of other very attractive advantages:

1. There are no income taxes, social security taxes, capital gain taxes, withholding taxes, stamp, or duty taxes.
2. There are no gift, death, estate, dividend, distribution, or inheritance taxes.
3. No minimum authorized capital; bearer shares permitted.
4. A business license is not required.
5. Officers, directors, and members are not identified.
6. Plaintiff bringing civil suit must post US $25,000 bond.
7. Statute of limitations for civil suits is one year.

The registration process is simple and can be accomplished with little effort.

A Company may be incorporated to conduct any lawful business and there is no need to enumerate the particular objects for which the company is incorporated.

An IBC registered in Nevis is required to maintain a registered agent at all times. The Minister of Finance licenses trust companies and registered agents. A Nevis IBC is also required to maintain a registered office in Nevis. This requirement is easily satisfied as the legislation permits the office of the registered agent to act as the office of the company.

The Nevis Business Corporation Ordinance Act was enacted in 1984 and is modeled in large part on USA Delaware corporate statutes. The legislation is contemporary and user-friendly. It is routinely updated to ensure that it remains progressive and avant-garde.

On Nevis there are no exchange controls, no tax treaties with other nations (including the U.S.), and the government will not exchange tax or other information with any other foreign revenue service or government. Principal corporate offices and records may be maintained by Nevis companies anywhere in the world.

The Nevis corporation law is almost unique in that it contains a very modern legal provision allowing the international portability or transfer of an existing foreign company from its country of origin to the island. Known as the "redomiciling provision," this allows the smooth and instantaneous transfer of an existing American, British, Panamanian or any other nation's corporation, retention of its original name and date of incorporation -- all without interruption of business activity or corporate existence. The only requirement is the amendment of existing articles of incorporation to conform with local laws.

In 1995 Nevis enacted the Limited Liability Company Ordinance, which provides for the existence of what is sometimes known as a Limited Duration Company, or LLC, with the added benefit that the company may be structured in such a way as to be treated as a partnership under United States tax laws.