A Company registered in St Kitts and Nevis is a business instrument popular with international entrepreneurs in the current era. The Federation of St Kitts and Nevis is an island state in the Caribbean that attracts foreign investors due to its geographical position, a fair taxation system, an advanced infrastructure, and a well-developed financial environment.
The following sectors of the St Kitts and Nevis economy are seeing an active inflow of foreign investments at the moment: the financial sector, real estate, informational technologies, and manufacturing. However, before you decide to launch a business venture in St Kitts and Nevis, you have to acquaint yourself with all the relevant legislation that governs business activities in the country. Below we discuss the central issues related to registering a company in St Kitts and Nevis.
Why is St Kitts and Nevis so attractive for foreign investors?
The opportunity to register a business company in St Kitts and Nevis is attractive for several reasons. The main reasons include the following ones:
- A favorable business environment. The country’s authorities are interested in attractive foreign investors so they have created a comfortable business environment there. You will find an extensive financial infrastructure in St Kitts and Nevis, a stable political environment, a high level of personal security, and easy access to international markets.
- Geographical position. St Kitts and Nevis is located in the Caribbean Sea, which makes the country a good platform for dealing with partners in North, Central, and South America. In addition, there is an international airport with regular flights to Europe and other destinations and several seaports that you can use to ship your goods anywhere in the world.
- Lack of red tape. The process of company registration in St Kitts and Nevis is almost free of bureaucracy and this is one of the factors that foreign entrepreneurs like about the country.
- Global business opportunities. Companies registered in St Kitts and Nevis can do business and own property in any part of the world.
- Citizenship by Investment program. St Kitts and Nevis is one of the Caribbean countries that ‘sell’ their citizenship to foreign nationals. To be more precise you can acquire a passport of St Kitts and Nevis in exchange for a donation or an investment. An investment into a business venture can make you qualified for citizenship of the country.
- Tax benefits. St Kitts and Nevis has a beneficial tax system with low tax rates. In addition to that, several tax incentives are available to foreign investors in the country. For example, no capital gains tax nor inheritance tax are charged in St Kitts and Nevis.
Company registration in St Kitts and Nevis: a step-by-step guide
We have to make an explanatory note before we proceed. St Kitts and Nevis is a federation and corporate legislations are different on the two islands. Forming an LLC in Nevis can be more beneficial than forming one in St Kitts. On the other hand, living on the island of St Kitts is more comfortable because it is larger and has a better-developed infrastructure. Please keep this fact in mind if you decide to become a citizen of St Kitts and Nevis and relocate to a Caribbean paradise.
The main stages of incorporating a company in St Kitts and Nevis are as follows:
- Choose the form of company ownership. The choice is not too great (see below) but much will depend on the type of company that you register in St Kitts and Nevis. In particular, your fiscal burden can be quite different.
- Reserve the company name that has to be unique.
- Prepare the documents for submitting to the Ministry of Justice. The key application documents include the company founders’ passport copies, proofs of addresses, and confirmations of the legality of their sources of income.
- Pay the state duty and the company registration fee.
- Open a bank account where you can deposit the charter capital.
Please note that the rules can change from time to time and new requirements may come up. For this reason, you should see professional support if you are thinking of registering a company in St Kitts and Nevis.
Forms of company ownership available in St Kitts and Nevis
Below we list the types of companies that foreign investors register in St Kitts and Nevis most often.
- Limited Liability Company (LLC). This is the most widespread form of company ownership in St Kitts and Nevis (as well as anywhere else) because nothing can beat the advantage of having limited liability.
- International Business Company. This type of offshore company can bring serious tax advantages to the founder. Besides, it allows doing business in any place in the world.
- Limited Partnership. Even though the Partnership is called ‘limited’ at least one of the Partners has unlimited liability. This fact should not bother you only of the unlimited partner has very little property to lose.
- Company Limited by Guarantee. This is the type of company that charitable organizations often establish in St Kitts and Nevis. The founders’ liability is limited by a guaranteed amount of money.
In addition to that, you can also consider setting up a holding company in St Kitts and Nevis to manage your assets and your portfolio. However, a holding company is a serious business enterprise so please make sure that you seek legal support in the process of registering a holding in St Kitts and Nevis.
Documents required for registering a company in St Kitts and Nevis
You will have to submit the following documents when registering a company in St Kitts and Nevis:
- Application for company registration;
- Company By-laws (that should reveal the company organizational structure, the types of prospective business activities, and the sought results);
- Personal identification documents for company founders and directors;
- Proofs of residential addresses for company founders and directors (utility bills, bank statements, and other documents that indicate the place of residence);
- Financial solvency documents;
- Receipts confirming payment of state duties.
Please note that the requirements can be different depending what type of company you would like to register in St Kitts and Nevis. If you are wondering if it is possible to register a company in the country from the comfort of your home, it is. However, the process is going to be longer and procedures more complicated. You certainly need expert support if you want to register a company in St Kitts and Nevis remotely.
Registering a company in St Kitts and Nevis: taxation
St Kitts and Nevis offers attractive tax rates. Because there are tax reduction opportunities in the country, this issue needs close attention. We provide only some basic information about taxes in St Kitts and Nevis below and you’d better consult a tax lawyer to get a better understanding of the tax system in the country.
- Corporate profit tax is 33% in St Kitts and Nevis. However, if a company makes profits in other national states and pays taxes there, tax exemptions may be available to the company in St Kitts and Nevis.
- Personal income tax varies between 0% and 45% depending on the amount of income earned. If you acquire citizenship of St Kitts and Nevis by investment, you will be able to reduce the personal income tax for yourself.
- VAT is charged at the rate of 17% but some goods and services are VAT-exempt.
- Property tax is normally 0.2% of the property value.
Conclusion
St Kitts and Nevis is especially attractive for investors from North America, Europe, and some Asian countries. The opportunity to acquire citizenship of St Kitts and Nevis by investing into business is rarely to be found elsewhere and becoming a citizen and a fiscal resident of St Kitts and Nevis can bring substantial tax advantages.
