JND - Formation of an International Business Corporation in Nevis

WHY USE NEVIS?

Nevis is a leading international Caribbean Offshore Financial Centre with a good reputation and excellent standards. Factors contributing to and enhancing the status of this jurisdiction include:

• Nevis does not levy VAT or other indirect taxes. There is no income tax, capital gains tax, wealth tax, death duty or inheritance tax.
• Legislative and fiscal independence mean that the island responds quickly to the needs of business.
• New legislation is being regularly introduced to offer a greater number of services. These include LLCs  (Limited Liability Corporations ), Registered Trusts, Multiform Foundations, Insurance Companies and Mutual Funds.
• The island is independent and offers a stable political and economic environment.
• Nevis is a former British colony and applies a common law legal system  (similar to the English legal system ).
• Nevis is a well regulated jurisdiction and is recognised as such by FATF  (Financial Action Task Force ) and OECD  (Organisation for Co-operation and Development ).

Formation of an International Business Corporation in Nevis

General information is detailed below, outlining the formation and regulation of a Nevis International Business Corporation  (IBC ) as embodied in the Nevis Business Corporation Ordinance  (NBCO ) 1984, as amended.

1. Incorporation
Incorporation can be effected rapidly  (one day ).

2. Company Name
The company name may be in any language, but must be written in English characters or letters.

3. Minimum Capitalisation
There are no minimum or maximum capital requirements.

4. Shareholders
A minimum of one shareholder.

5. Shares
Corporations may issue both registered and bearer shares. However, the regulations regarding bearer shares have changed and, as a result, Dixcart’s policy is not to incorporate companies with bearer shares. Further information is available upon request. Par and no par value shares are permitted.

6. Directors
The minimum number of directors required is stipulated as three. However, if the number of shareholders is less than three  (as is generally the case ) the minimum number of directors can be equal to the number of shareholders. There are no residency requirements. Annual General meetings, as well as director and/or shareholder meetings do not need to be held in Nevis.

7. Resident Representative
The corporation must maintain a representative in Nevis to receive notices on behalf of the corporation. There is no requirement to maintain a registered office.

8. Accounts
Shareholders may waive the requirement to have accounts audited. Accounts do not need to be filed.

9. Taxation
Nevis does not impose income tax, tax on profits, capital gains tax or gift tax on non-resident corporations.

10. Double Tax Arrangement
Nevis has a double tax arrangement with the UK, although a company incorporated under the Nevis Business Corporation Ordinance cannot obtain treaty relief.  The Dixcart office in Nevis can provide further details as to whether a tax resident Multiform Foundation might be an appropriate option.

ORDERING A NEVIS INTERNATIONAL CORPORATION

Should you wish Dixcart to incorporate a Nevis IBC please fax a written request to John Terry or email him: john.terry@dixcartnevis.com. Alternatively please speak to your regular Dixcart contact. The following information will need to be provided:

• Name of Company  (please suggest at least one alternative ).
• Authorised share capital - default is 10,000 registered shares of
  US$ 1.00 each - please state if an alternative amount is required.
• Name (s) of first director(s) – this is in order that we can appoint them.
• A brief description of the proposed activity of the company.

Know-your-client regulations require that sufficient work has been carried out to ensure that the ultimate beneficial owner(s) of the corporation to be formed is not engaged in criminal activities. In addition confirmation is required that all activities to be undertaken by, and sources of funds to be introduced to, the corporation are legitimate. Dixcart therefore require confirmation that you have conducted this due diligence with your clients, using forms that will be sent to you. This process must be completed by a director of your company and received by us prior to the release of any corporate documentation.