By using our website you consent to all cookies in accordance with our Privacy Policy.

Conveniently nestled just a few hours away from Miami and other financial centers, Nevis is long known for its ideal environment for offshore seekers worldwide. A stable British-Common-Law-based legal system, an open economy, and tons of ideal conditions are what set Nevis apart from other offshore jurisdictions.

nevis-limited-liability-company

There are two most opt-for types of offshore companies in Nevis: Limited Liability Company and International Business Company. While these two share lots of things in common, strong security and asset protection are what set LLC apart from IBC.

Let’s dive into the most favorable entity type of this beautiful tropical island – Limited Liability Company!

1. Characteristics of a Nevis LLC

There are some really good reasons for the popularity of Nevis LLC.

Fiscally transparent entity. The first and foremost feature of Nevis LLC is that it is a transparent and flow-through entity. What it means is that the income generated by the LLC is taxed directly to its members.

Here is a quick example to wrap things up:

Anne is a tax resident of the UK and the sole member of Xavier LLC in Nevis. In the last year, Xavier LLC managed to earn two million pounds in profit. As it happened, Anne had to pay taxes on that income as well as her other streams of income in the UK. Xavier LLC and Anne don’t have to pay any tax in Nevis.

In Nevis, your company and you are exempted from tax on income, profits, dividends, interests, and capital gains. From a tax perspective, incorporating a Nevis LLC brings no benefits in terms of tax unless you are the tax resident of a tax incentives jurisdiction.

tax-in-nevis

Entity structure. It is no exaggeration to say that Nevis LLC has a quite simple management structure. In this type of entity, there is no shareholder, just members and managers. And that member can also be the sole manager of the LLC.

Only one member LLC is allowed. Another cool feature about Nevis LLC is that an LLC with only one member is also allowed to incorporate.

Separate rights and liabilities. Under the Nevis Limited Liability Company Ordinance 2017, a Nevis LLC is a legal entity with separate rights and liabilities from its managers and members.

Separate control and ownership interests. The manager of a Nevis LLC doesn’t need to have any ownership. However, this manager can control all of its operations and assets.

Members and managers can be individuals or corporations and of any nationalities. According to the Nevis Limited Liability Company Ordinance 2017, members and managers of a Nevis LLC can be both individuals or corporations. And the nationalities don’t matter at all.

members-managers-nevis-llc

Optional operating agreement. When incorporating a Nevis LLC, the members of this entity can enter into an Operating Agreement. This agreement might contain detailed information in terms of the affairs of the business. Moreover, this agreement is completely optional and cannot be done in writing.

2. Benefits of a Nevis LLC

2.1 Tax exemption for income generated outside of St.Kitts and Nevis

Here comes the first perk of a Nevis LLC: all income that is generated outside of St.Kitts and Nevis’s borders is exempted from tax.

In other words, a Nevis LLC doesn’t oblige to pay any tax on income, profits, dividends, royalties, capital gains, duties, and gifts.

2.2 Maximized privacy

privacy-nevis-llc

This might be the main reason why people opt for a Nevis LLC – its maximized privacy.

As for privacy purposes, a Nevis LLC is allowed to appoint a nominee member. Moreover, there are no public records about the company and its members at all. To be more specific, names and other information of the member(s) are not filed at the public registry.

2.3 Asset Protection

We’re not joking around when we say that most investors opt for a Nevis LLC because of its asset protection ability.

asset-protection-nevis-llc

As per the Nevis Limited Liability Company Ordinance 2017, a Nevis LLC offers the ability to shield your assets from lawsuits, agencies, and financial creditors.

This law makes it seem impossible for a Nevis LLC to be sued. Does it puzzle you a bit?

Here is an easy-to-understand example:

Let’s say, Eric owns a Nevis LLC for more than a year now. Unfortunately, he has been found indebted in another country and his creditors are after his assets. This is when the Charging Order Protection of Nevis comes in handy. In no circumstances do the creditors have the authority to liquidate or repossess Eric’s company.

The only thing the creditors are allowed to do if they win a lawsuit (which is very unlikely to happen) is to collect future distributions in a three-year period.

And not to mention the $100,000 dollars deposit in advance (however, the High Court has the authority to increase or vary the bond) in order to file a lawsuit and the lawyers demand payment without caring about the results.

2.4 Minimum maintenance

If the above perks are not enough to put you in awe, here comes another one. A Nevis LLC is known for its low-to-none corporate compliance. You don’t need to file any mandatory audits, company records at all.

But keep in mind that a Nevis LLC should maintain a register of charge at its registered office.

3. Initial requirements to register

With all the attractive characteristics and perks of a Nevis LLC, it is hard to not take an interest in it. Let’s take a closer look at the requirements to register for one.

register-requirements-nevis-llc

Company Name. The name of your Nevis LLC has to be in Latin alphabets and ended with Limited Liability Company or Limited Company. Abbreviations such as LLC, L.L.C, or L.C are also acceptable. The company name must not be the same as existing companies’ names in Nevis.

Registered office and registered agent. A Nevis LLC must always have a registered agent inside Nevis. And the address of that registered agent is also the address of the registered office of a Nevis company.

Members and managers. The term “members” in a Nevis LLC means the owners of the company. The company only has to have one member to be eligible to incorporate one. And that member can also be the manager of the company. More interestingly, the manager of a Nevis LLC can be both a person or a business entity.

Articles of organization. In order to form a Nevis LLC, Articles of Organization must be filed then submitted to the Registrar of Companies. This article must also include the information of a written Operating Agreement (if any).

Operating agreement (optional). As mentioned earlier, the members of a Nevis LLC can enter into an Operating Agreement, and this is completely optional. This Operating agreement can contain any provisions of the following issues: the scope of business, the conduct of its business, the rights or powers of members and managers.

4. Annual Compliance

Even though Nevis companies have minimum maintenance requirements, there are some rules that need to be obliged.

asset-protection-nevis-llc

A Nevis LLC is required to keep all of its books and records for a minimum period of 5 years from the date they are prepared. The books and records should include information about contracts and invoices.

Moreover, a Nevis LLC needs to be renewed each year in order to stay active. The annual registration fee of a Nevis LLC is USD 250 which is paid to the Office of the Registrar of Companies through its registered agent.

5. Conclusion

It is undeniable that Nevis LLC offers a wide range of perks that most investors are longing for: from a tax-free environment to the minimum compliance requirements. And let’s not forget the excellent asset protection that this type of entity brings.

If you need further information or assistance, please do not hesitate to contact us at service@bbcincorp.com.

Recent Posts

doing-business-in-cyprus
7 May 2021

Doing Business In Cyprus: All-in-One Guide For Entrepreneurs

Cyprus has long established itself as a thriving business hub. Doing business in Cyprus offers countless opportunities and advantages for entrepreneurs.

Read more
business-license-in-delaware
4 May 2021

Business License In Delaware: What Is It & How To Get

Obtaining an appropriate business license in Delaware is a key step when you wish to start your own business in this outstanding state of the US. Learn more!

Read more
personal-income-tax-in-delaware
28 Apr 2021

Non-resident Personal Income Tax in Delaware: 2021 Guide

Delaware personal income tax is a crucial part of doing business as a non-resident. Let BBCIncorp guide you through the process of filing your tax return.

Read more
start-a-business-in-the-uk
4 May 2021

Start a Business in the UK: A Step-by-step Guide (2021 Update)

To start a business in the UK, you will need to pick the type of business entity, form the company and apply for a bank account. Learn all the steps now!

Read more
bbcincorp-x-neat
27 Apr 2021

BBCIncorp x Neat: Incorporation and Account Setup with Ease

Forming a business in Hong Kong on your own is never an easy task. But with a trusted service provider namely BBCIncorp and an efficient financial solution like Neat, your business is in good hands.

Read more
delaware-s-corp-vs-c-corp
26 Apr 2021

Delaware S Corp vs C Corp and issues that differentiate them

Delaware S Corp vs C Corp has been around for a long time. Let’s take a closer look at these entities with BBCIncorp.

Read more
faqs-about-delaware-corporation
27 Apr 2021

FAQs – 12 Frequently Asked Questions About Delaware Corporation

You may be confused about corporation types, structures, benefits, annual fees and how to form. These 12 FAQs about Delaware corporation are for you.

Read more
private-limited-company-in-the-uk
15 Apr 2021

Private Limited Company – An Emerging Form of Business in the UK

Everything you need to know about forming a Private Limited Company in the UK, including the pros and cons, formation requirements, and legal responsibilities.

Read more
delaware-withholding-tax
21 Apr 2021

Delaware Withholding Tax: What New Employers Should Know

Delaware withholding tax is imposed on wages paid to employees who perform for a company in the state. The employer must pay the amount to the local authority.

Read more
delaware-franchise-tax-and-annual-report
28 Apr 2021

Delaware Franchise Tax And Annual Report: What You Need To Know

Delaware franchise tax is one of mostly-asked topics for any business registered in the state, especially corporations and LLCs. This blog will explain to you.

Read more
how-to-form-a-delaware-corporation
28 Apr 2021

How To Form A Delaware Corporation: A Complete Guidance

Forming Delaware corporation is a trending option for most startups in the US. These easy-to-follow steps will guide you on how to set up a Delaware corporation.

Read more
delaware-llc-annual-fees-and-annual-report
26 Apr 2021

Delaware LLC Annual Fees and Annual Report: How to Stay Compliant

A Delaware LLC need not file an annual report. But it may report on its income. Besides, a Delaware LLC needs to pay two kinds of annual fees for maintenance.

Read more