A Tax Haven: Things You Should Know About Offshore Incorporation in Nevis
Offering an excellent financial framework, there’s no doubt that Nevis is one of the best countries to set up an offshore company. You get access to low setup costs, greater financial asset protection, and most importantly, reduced income taxes.
Your offshore company can be incorporated under an International Business Company/Corporation (IBC) by the Nevis Business Corporation Ordinance. This means that business owners are free to conduct legitimate business in Nevis after undergoing an easy registration process.
This is what you need to know about offshore incorporation in the Caribbean tax haven.
The first step to offshore incorporation in Nevis is to get a registered agent with a Nevis Island Administration license. The agent should also have a registered office in Nevis. Once you’ve finalized the name of the IBC, your agent will reserve it via Nevis’s online registration module.
According to the 1984 Ordinance, the agent may be a barrister carrying out practice in Nevis and St. Christopher. You can even act as the registered agent for other corporations if you have a paid-in capital worth EC $500,000. This approach was introduced to minimize bureaucratic processes.
There is no need to pay taxes from the local area by a registered Nevis Business Corporation (IBC). Owners in this tax haven can enjoy exemptions from capital gain taxes, withholding, state, succession, gift, and stamp duties.
The list of exemptions also includes any tax sourced from income earned outside Nevis or via activities which occurred outside of Nevis.
- Annual Tax Returns
Nevis Business Corporations do not need to file any tax returns. Offshore companies in the country are, however, required to pay the annual corporation registration charge.
There are certain restrictions that one needs to be aware of when forming an offshore company in Nevis. Such a corporation will face restrictions when trading within Nevis.
The exception is when the deal involves an international partner with no ties to Nevis. The transaction is also restricted to services related to insurance, banking, and real estate.
When it comes to naming a Nevis corporation, the name must include Limited Liability Company (LLC). A similar-sounding name to any other existing company in the country can also be restricted to avoid confusion.
Note: If your offshore company name has words like Loans, Municipal, Bank, or Royal, you may require governmental approval prior to incorporation.
If you are interested in learning about how to legally reduce corporation tax bill, talk with Mikkel Thorup. His weekly podcast The Expat Money Show offers conversations with successful expats on entrepreneurship, investing, finance, international living, and setting up an offshore company in Nevis, Seychelles, Ireland and more.