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Why Consider Using a Nevis International Business Company for Wealth Planning and Holding International Investments?

St Kitts & Nevis

Nevis is a leading international Caribbean financial centre, with a good reputation and excellent compliance standards, making it well suited to holding international investments for wealthy families.

It can be a challenge for non-European investors to find an efficient and cost effective manner in which to make international investments. The use of a Nevis International Business Corporation (IBC) can provide a solution that also offers appropriate levels of privacy.

Nevis – An International Business Centre

St Kitts & Nevis is independent and offers a stable political and economic environment. It is a former British Colony, which applies a common law legal system (similar to the English legal system).

Nevis is a well-regulated jurisdiction and is recognised by FATF (Financial Action Task Force) and OECD (Organisation for Economic Co-operation and Development).

Why Consider Nevis for Wealth Planning?

There are a number of reasons why individuals choose to establish wealth planning structures in Nevis:

  • Nevis does not levy VAT or other indirect taxes on International Business Corporations (IBCs) and there is NO income tax, NO capital gains tax, NO wealth tax, NO death duty or inheritance tax.
  • The island is independent and offers a stable political and economic environment. Legislative and fiscal independence mean that the island can respond quickly to the needs of business.
  • New legislation is regularly introduced to offer a greater variety of relevant international corporate vehicles. These include; Limited Liability Corporations (LLC), International Business Corporations, Registered Trusts, Multiform Foundations, Insurance Companies and Mutual Funds.

Key Features of Structures Used for Holding Investments in Nevis

  1. Why Use a Nevis Company?

Through the use of a Nevis company, a client can open a Caribbean bank account and the company can make an investment into financial funds with relative ease.

Nevis offers a particularly high level of efficiency in terms of cost, management and administration and a Nevis structure can offer the opportunity to hold international investments in a tax neutral way.

  1. Disclosure Obligations

Disclosure between Governments already exists, with the introduction of the CRS Reporting Regime. Nevis does not, however, have a public or Government register for officers, shareholders or ultimate controlling parties.

  1. The Cost of a Nevis Investment Holding Structure

The costs for the establishment of a fully managed Nevis investment holding structure are detailed below:

  • Establishment and First Year Fees
  • US$1,500 incorporation fees
  • US$2,500 annual directors fees for the first year
  • Corporate management charge based on time cost charges (subject to a minimum $5,000 for the first year)
  • Ongoing Annual Fees
  • US$725 Government renewal fee and registered agent fees
  • US$2,500 annual directors fees
  • Corporate management charge based on time cost charges (subject to a minimum $5,000 per annum)

What do the Establishment and Ongoing Fees Include?

The fees for establishing an international structure cover the following items:

  • Incorporation of the company
  • Opening a bank account
  • Opening of an investment account
  • Ongoing reporting of the net asset value (monthly)
  • Production of annual financial statements
  • General management of the company and the bank account
  • Annual renewal of the company
  • Provision of company secretarial services
  1. What Would the Termination Fee Be?

On termination and distribution of the investment, time costs would be charged in relation to distributing the assets and closing the company activity.

Additional Information

The Dixcart office in Nevis can provide further information regarding Nevis IBC structures and the advantages that this jurisdiction offers for the holding of international investments. Dixcart Management Nevis Limited is a Registered Agent for the establishment and management of a Nevis IBC.

Please speak to your regular Dixcart contact or Graham Sutcliffe at the Dixcart office in Nevis for additional information: advice.nevis@dixcart.com.

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