Registering a company in St Kitts and Nevis is a popular solution with international entrepreneurs. St Kitts and Nevis (officially, the Federation of Saint Christopher and Nevis) is a small island state in the Caribbean Sea that attracts investors thanks to its geographical location, a favorable taxation system, and a stable and well-developed financial sector.
The sectors of the economy that attract the largest portions of foreign direct investments in St Kitts and Nevis include the financial sector, real estate, informational technologies, and the manufacturing sector. However, before setting up a business company in the jurisdiction, you should carefully study the relevant legislation and find out how business entities are regulated in St Kitts and Nevis. You certainly want to know what to expect when doing business in a foreign country.
Below we discuss the advantages of registering a company in St Kitts and Nevis and describe the steps in the procedure.
What makes St Kitts and Nevis attractive for foreign investors?
The main reasons why opening a company in St Kitts and Nevis is an attractive opportunity for a foreign investor include the following ones:
- A favorable business environment. The country’s authorities do their best to make the business environment in St Kitts and Nevis favorable for foreign investors. There you will find an advanced financial infrastructure, a stable political situation, a high level of personal security, and access to international markets.
- Geographical location. The islands are located in the Caribbean Sea, which makes them a good platform for trading with South, North, and Central American companies. St Kitts and Nevis also boasts a good transportation network: there is an international airport in the country and several seaports.
- Lack of bureaucracy. The company registration process is relatively fast and simple in St Kitts and Nevis, which attracts foreign entrepreneurs.
- Flexibility in company formation. You can form an offshore company in St Kitts and Nevis that will enjoy various tax benefits if it does business outside the jurisdiction. You can also set up a local company that will have to pay taxes in St Kitts and Nevis but the rates are lower than they are in many other jurisdictions.
- Citizenship-by-investment program. St Kitts administers the oldest citizenship-by-investment program. Since 1984 when the program was launched, a large number of foreigners have ‘purchased’ passports of St Kitts and Nevis. You can make a donation to qualify for citizenship of the country but you can also make a returnable investment into property on the islands. Theoretically, you may have to pay nothing for citizenship of St Kitts and Nevis. Moreover, if the price of the property rises substantially when you sell it back after 5 years, you may be left with a passport of St Kitts and Nevis and some capital gains!
- Tax advantages. The country offers a favorable tax system with low tax rates. Foreign investors are also eligible for various tax exemptions and tax cuts. Besides, St Kitts and Nevis does not tax foreign incomes, capital gains, and inherited assets.
The procedure of registering a company in St Kitts and Nevis
Even though the procedure is not overly complicated, some bureaucratic processes are involved and some documents are required. The main stages in the company registration process include the following ones:
- Choose the company type. You can set up an LLC, an IBC, a Partnership, or a Trust. Besides, you can combine an LLC and a Trust in Nevis if your goal is to protect your assets in the best possible way. If you’d like to learn more about this business solution, please follow the link.
- Reserve a unique company name.
- Prepare the application documents and submit them to the Ministry of Justice. The key documents include the application for company formation, the identification documents of the company founder/ directors, proof of their residential addresses, and documents confirming the legality of the sources of income.
- Pay the company registration fee.
- Open a corporate bank account and deposit the charter capital.
Please note that the conditions for company formation may change and it would be wise of you to contact a professional who possesses the most recent information about registering a company in St Kitts and Nevis.
Types of companies available to foreign investors in St Kitts and Nevis
Foreign nationals are entitled to register companies of different types in St Kitts and Nevis. The most popular forms of company ownership include the following ones:
- Limited Liability Company (LLC). This is the most widespread form of company ownership because it allows keeping the liability limited by the contribution to the charter capital.
- International Business Company (IBC). It is an offshore company not taxable in St Kitts and Nevis.
- Limited Partnership. At least one of the Partners has to have unlimited liability while all other Partners can have limited liabilities.
- Company Limited by Guarantee. Such companies are usually established by charities and other non-commercial organizations.
Foreign investors can also establish a holding company in St Kitts and Nevis to manage investments and investment portfolios. However, you will be well-advised to seek professional support if you would like to register a holding in the jurisdiction.
Documents required for registering a company in St Kitts and Nevis
The following documents are required to register a company in St Kitts and Nevis:
- An application for company formation.
- Company By-laws reflecting the company’s organizational structure and spheres of business interests.
- Company founders and directors’ identification documents.
- Documents certifying residential address of the company founders and directors (utility bills, bank statements, rent agreements, etc.).
- Documents certifying the company founder’s solvency.
- Relevant receipts.
We have to note that the company registration procedure will depend on the company ownership type. A company can also be registered in St Kitts and Nevis remotely but in this case, the list of application documents is going to be different too. This is why it would be reasonable to involve a specialist in the process of registering a company in St Kitts and Nevis.
Taxes in St Kitts and Nevis
The country offers favorable tax conditions. Some key taxes in St Kitts and Nevis:
- Corporate profit tax is 33%. However, if a company derives profits from business operations abroad, it can become tax-exempt in St Kitts and Nevis.
- Personal income tax varies between 0% and 45% depending on the amount of income. A foreign investor can qualify for tax residence in St Kitts and Nevis thus lowering his/ her overall tax burden.
- The VAT is 17 but some goods and services are exempted from the tax.
- Property tax is usually 0.2% of the property value.
Conclusion
St Kitts and Nevis is a Caribbean country that attracts both foreign investors from different parts of the world thanks to its favorable geographical location and a flexible business environment. In addition to that, St Kitts and Nevis has a citizenship-by-investment program that allows becoming a tax resident of the country. With professional support, you can become a citizen of St Kitts and Nevis and launch a business company there.