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How to launch a working business in St Kitts and Nevis: detailed guide

To launch an effective cross-border business, one must first choose a jurisdiction with a suitable business climate, legal framework and corporate regulations. It is desirable that the country has a stable banking system and that the legislation provides opportunities for legal tax optimisation. Company registration in St. Kitts and Nevis meets all these requirements. This jurisdiction provides good conditions for cross-border business, non-residents enjoy the same rights as citizens.

Advantages of doing business in St. Kitts and Nevis

The low or zero burden ensures that personal and corporate payments are optimised on a perfectly legal basis. This allows you to launch and run an efficient and legal business while remaining in a legal legal legal environment. It is especially important that St. Kitts and Nevis offshore company conducts business activities in a jurisdiction that is not included in the grey and blacklists of international regulators (FATF, OECD). Therefore, business people have access to all the tools and opportunities for strategic planning while maintaining an attractive commercial environment.

Other advantages that international business in St Kitts and Nevis offers are:

  • A stable political situation;
  • good macroeconomic indicators of economic development (GDP growth of 4.4 per cent, inflation of 2.3-2.5 per cent, public debt of no more than 51 per cent of GDP);
  • sufficient level of confidentiality;
  • statutory protection of personal and corporate information;
  • proximity to the US, Latin and South American markets;
  • simplified company registration procedure in St Kitts and Nevis;
  • minimal bureaucratic influence;
  • very low levels of corruption;
  • elaborate corporate legislation;
  • effective legal instruments for asset protection and diversification;
  • you can choose from a number of legal forms to suit your specific needs: LLC in St. Kitts and Nevis and IBC in St. Kitts and Nevis offer interesting opportunities to incorporate and do business, and other formats are also available;
  • government business support;
  • close and seamless integration into the international business space;
  • a variety of St. Kitts and Nevis corporate services are available;
  • no exchange controls.

Citizenship by Investment Programme

For those looking to set up a company in St Kitts and Nevis, the option of obtaining a second passport quickly can be an important additional consideration. Typically, the average processing time is 3-4 months. The financial requirement threshold is relatively low -$ 250000 +$ 10000 application verification. The answer to the question of how to register a business in St Kitts and Nevis will be a little different in this case, but all the advantages of the jurisdiction will remain.

Minimum financial requirements of the SISC (Sustainable Island State Contribution) programme:

Category of applicants for St Kitts and Nevis citizenshipMinimum Contribution
Principal applicant, his/her husband/wife, their children (not more than 4 persons in total)$250000 / $325000 for repayable property investment
Dependents under 18 years of age$25000
Dependents over 18 years old$50000

Additional due diligence fee – $10000 for primary dependent and$ 7500 for each dependent over 16 years of age.

Who is suitable for St Kitts and Nevis?

The business environment created in the jurisdiction does not impose a restriction on the scope of business interests. Once your company is incorporated, you will need to open a St. Kitts and Nevis bank account, obtain a licence (if your business is regulated) and meet the minimum requirements for economic presence. A St. Kitts and Nevis offshore company will be an effective tool for launching business projects of any complexity in a comfortable and favourable environment.

The jurisdiction will also be of interest to individuals willing to invest in the economy. St. Kitts and Nevis is particularly attractive to foreign investors because of its strict confidentiality rules, which is rare in the era of deoffshorisation. Laws reliably protect information related to business and financial transactions, disclosure of information is legally difficult.

A special category of persons who will be interested in the jurisdiction are wealthy foreigners belonging to the HNWI (High Net Worth Individuals) segment. For them, the advantages of doing business in St. Kitts and Nevis come down to a combination of several factors: low or zero taxation, extended privacy, developed banking sector, the possibility of quickly obtaining a second citizenship, excellent conditions for recreation.

Loyal taxation of St. Kitts and Nevis companies, simplified registration procedure and minimal incorporation costs stimulate the launch of promising start-ups hoping to attract external capital. This is facilitated by the ability to open a business online in St Kitts and Nevis, which removes many technical difficulties and inconveniences.

Companies focusing on cross-border trade operations can take advantage of the jurisdiction’s membership in the regional association CARICOM (Caribbean Community), which, in addition to the Federation of St. Kitts and Nevis, includes almost all the states and territories of the Caribbean archipelago. Significant privileges give participation in OECS (Organisation of Eastern Caribbean States) – an economic union, whose activities are aimed at creating the most favourable conditions for mutual trade, movement of capital and labour, unification of tariffs and fees.

When planning to register a company in St. Kitts and Nevis, one should take into account two factors that influence the business attractiveness of the jurisdiction:

  • Double Tax Treaties (DTCs, Double Tax Conventions or DTTs – Double Tax Treaty). A legal mechanism to eliminate or reduce the negative impact of repeated payments (in the country of residence and income). If you open an offshore in St Kitts and Nevis, companies whose business is connected with the UK, Denmark, Norway, USA, Sweden or Switzerland will be able to take advantage of this option. But the limited availability of SIDN contracts is not important in every case. It all depends on the specifics of a particular company’s business, its management/ownership scheme, the scope of its business interests and a number of other factors.
  • FATCA and CRS requirements. Countering aggressive tax optimisation affects the business attractiveness of offshore jurisdictions. The international community is actively combating any fiscal and financial irregularities, compliance with FATCA and CRS provisions has become the norm in all jurisdictions, not just offshore and midshoring. A state that cooperates with international regulators protects its reputation and creates favourable conditions for doing business. Therefore, transparent compliance and KYC in St Kitts and Nevis is not an obstacle, but a basic requirement for effective commercial activity.

Taxation peculiarities

Business for non-residents of St Kitts and Nevis can generate a low fiscal burden if a number of conditions are met. The jurisdiction has no currency control and CFC (Controlled Foreign Corporation / Company) rules, the number of countries with which the automatic exchange of tax information (TIEA, Tax Information Exchange Agreement) is carried out is limited, 21 in total.

Corporate income tax in St. Kitts and Nevis

The base is formed taking into account the status of the legal entity. For residents, it includes worldwide income, for non-residents – only those received in St. Kitts and Nevis. The standard rate is 33%. The zero tax regime applies exclusively to companies registered before 2019.

PERSONAL INCOME TAX

There is no income tax in St Kitts and Nevis. Social contributions are paid, the rate is progressive and depends on income – 3.5%, 10% or 12%. Individuals who are engaged in business, must take into account tax on revenue (4%, there are deductions for trade and services). In this case, a one-time transfer to the corporate taxation system is possible.

Withholding tax

The standard rate for non-residents is 15% for dividends, interest and royalties, and 0% for residents.

VAT

The standard rate is 17% and the preferential rate is 10%, applicable only to the tourism and hospitality industry.

St. Kitts and Nevis Tax Identification Number

The TIN (Tax Identification Number) is issued on a one-time basis by the St. Kitts and Nevis Inland Revenue Department (SKNIRD, Saint Christopher and Nevis Inland Revenue Department) and cannot be changed. It appears on many tax documents prepared by the company, with two digits added to the end to identify the type of tax (04 for corporation tax, 45 for VAT, 36 for withholding tax, etc.).

Exchange of tax information

St Kitts and Nevis joined the CRS MCAA (Common Reporting Standard Multilateral Competent Authority Agreement) in early 2016, with the first automatic exchange taking place in September 2018. The number of countries with bilateral TIEAs (Tax Information Exchange Agreements) is limited to 21.

The corporate legal framework is based on the English legal system with significant influence from Saxon common law and the business laws of the American states of New York and Delaware. The basic document is the Nevis Business Corporation Ordinance, enacted in 1984. Later, in 2002, important changes were made to the text. In 1995, a law was passed regulating the registration of limited liability companies (LLC, Limited Liability Company) and their commercial activities.

The main strategic advantage of incorporating companies in St Kitts and Nevis is the comfortable environment in which to conduct business operations. While retaining important features of classic offshore jurisdictions (low taxes, minimal control by regulator, transparent corporate legislation, etc.), the authorities staked on all possible assistance to business.

This is manifested in increased confidentiality, the ability to quickly open a business in the offshore zone of St. Kitts and Nevis, and expanded corporate services. Note the developed banking sector oriented towards co-operation with non-resident companies, which completely eliminates potential difficulties associated with opening and maintaining business accounts.

Another important feature of the corporate legislation in force in the jurisdiction is the authorised nominee service.

Corporate reporting in St Kitts and Nevis is simplified:

  • no mandatory filing of (current, annual) reports;
  • no free access to corporate (accounting) documents;
  • no mandatory audit;
  • St Kitts and Nevis is not a member of the OECD and is not obliged to comply with the relevant recommendations and requirements.

Nominal service

There can be quite a few situations where a business person – shareholder or director of a company – wants to avoid formal connections with a legal entity. A reliable legal tool for solving such problems is nominee service. In many countries it is prohibited or the relevant mechanisms have a limited scope of application. But the requirements for the director and shareholders of St. Kitts and Nevis allow this format of participation in the affairs of the company.

There is a fee for the service, as you will have to make provision for the costs of nominees. But in return, you will not be named in any business documents, which creates an additional level of confidentiality. The corporate legislation of St. Kitts and Nevis reliably protects the rights of real shareholders and directors, so there are no risks associated with nominee service in the jurisdiction.

Peculiarities of offshore company registration in St. Kitts and Nevis

The current laws are aimed at stimulating business, so all organisational and legal mechanisms of incorporation are maximally simplified. Step-by-step instructions for opening a company in St. Kitts and Nevis can be implemented in two ways – by visiting the jurisdiction or remotely. The latter option is formally a bit more expensive. However, given the minimal overhead costs (flight, accommodation, time), it usually turns out to be more favourable in the end. However, before launching company registration in St Kitts and Nevis, you need to understand the basic requirements.

What is important to pay special attention to:

  • keeping and maintaining financial records is mandatory, but you do not need to undergo an annual independent audit;
  • you cannot buy off-the-shelf (shelf) companies;
  • registration agent in St Kitts and Nevis is mandatory;
  • no minimum authorised capital requirements;
  • shares without par value are prohibited;
  • company’s registered office in St Kitts and Nevis is mandatory, but it can be virtual;
  • requirements for the director of an offshore company in St. Kitts and Nevis: no residency requirement, may be a legal entity, personal information is not disclosed to the local agent and is not entered into public registers;
  • offshore company secretary requirements in St. Kitts and Nevis: required for IBCs, for LLCs the position is optional, it can be exclusively a resident (citizen), no minimum qualifications, only a natural person;
  • it is possible to register a company remotely in St. Kitts and Nevis;
  • requirements for shareholders of an offshore company in St. Kitts and Nevis: not less than one, any residency, data is closed (not entered in the registers);
  • requirements regarding beneficiaries of an offshore company in St. Kitts and Nevis: information is not included in public registers and is not transferred to a local agent, natural or legal persons;
  • redomiciliation to St Kitts and Nevis and to other countries is permitted;
  • a special St. Kitts and Nevis business licence is required for the use of certain words in the company name.

Annual company renewal costs in St Kitts and Nevis (* – if applicable):

  • Government fee;
  • registration agent’s fees;
  • filing of tax returns*;
  • retention of registered office;
  • nominal service*.

Limited Liability Company or Corporation

An LLC in St. Kitts and Nevis and an IBC in St. Kitts and Nevis are the two most popular legal forms for non-resident businesses in the jurisdiction. Each pays no corporate tax on income if its source is overseas. But you can only appreciate all the benefits of doing business in St Kitts and Nevis if you choose the right type of company.

Comparison of LLC and IBC:

CriterionLLC in St. Kitts and NevisIBC in St. Kitts and Nevis
Legal structureHybrid legal entity with features of a partnership and a companyClassic company
Who owns the titleMembers of the businessShareholders
Priority advantagesEffective asset protection, limited liability of participantsFlexible management structure, loyal administrative requirements
Officer requirementNoYes
Recommended areas of applicationAsset protection, investment, global (cross-border) operationsInternational trade, launching and maintaining holding structures
Special corporate requirementsNoMandatory shareholder meetings and final resolutions

The documents to incorporate a company in St Kitts and Nevis in both cases (LLC and IBC) will be slightly different.

CBI Programme

Citizenship by Investment is an important advantage of St. Kitts and Nevis offshore. The programme speeds up and simplifies the standard naturalisation procedure, and the financial threshold is relatively low. Potential candidates are subject to typical eligibility conditions, but fulfilment of these conditions is not difficult.

Description of Immigration Investment Routes:

  • Sustainable Island State Contribution (SISC, Sustainable Island State Contribution). The investment will be used to implement government support programmes related to strengthening and improving the economic, social and environmental situation in St. Kitts and Nevis.
  • Real Estate Investment. The programme involves hotel properties in the “zero” housing market (from the developer). The property is transferred to the ownership of the investor, but in case of its sale before the established deadlines citizenship of St. Kitts and Nevis will be revoked.
  • Investments in private real estate (Private Real Estate). The classic programme of citizenship for investment, focused on the secondary housing market. The financial threshold for entry is relatively low, similar European options require greater costs. The minimum period of holding the property in ownership is 7 years.
  • Investments in projects with public benefit (PBO, Public Benefit Option). Investments must be related to the development of St. Kitts and Nevis’ industrial potential, real estate and development projects on public lands, and regionally oriented social endeavours.

Minimum contributions:

Immigration routeMinimum investment amountPrincipal applicant, his/her family (not more than 4 persons)Dependents under 18 years of ageDependents 18 years and over
Contribution to the sustainable development of the island nation$250000$25000$50000
Investment in property of the developerFrom $325000$25000 (+$ 15000 for husband/wife)$10000$15000
Private propertyFrom $325000 (flat, share in housing), from$ 600000 (family house)$25000 (+$ 15000 for husband / wife)$10000$15000
Public benefit$250000

There is an additional due diligence fee for each person listed on the application:

  • main applicant -$ 10000;
  • all dependents 16 years of age and older – $7500.

St Kitts and Nevis passport holders get access to all the benefits of visa-free travel. This option will be of interest to many foreigners: ordinary citizens, business people, investors, digital nomads, expats, creative young people. The list of countries for free entry is quite large, 156 in total. Several typical schemes may apply – 90 out of 180 (here and hereafter the number of days of legal stay in another state is indicated): 30, 60, 90, 120, 180. For some jurisdictions (Montserrat, St Vincent and the Grenadines, St Lucia) there are no time limits.

Conclusion

To start a company in St Kitts and Nevis, you need to fulfil the basic corporate requirements. KYC / AML checks are mandatory, but this approach has been the norm for several years for developed countries, including offshore companies that take care of their reputation and fulfil the recommendations of FATF and OECD.

How to register a business in St. Kitts and Nevis? It can be done remotely or by visiting the jurisdiction. The latter option will appeal to those business people who would like not only to launch a new business, but also to have a holiday – the islands have all the conditions for this. It should be noted that the taxation of companies in St. Kitts and Nevis allows for a wide range of opportunities for legal optimisation, which is especially important in conditions of increased control over financial flows.

Who will be interested in doing business in this Caribbean jurisdiction? There are no significant restrictions or cases for the implementation of which another offshore would be better suited. If after incorporation you open a bank account in St. Kitts and Nevis, you will get a working and promising business with great potential.

This will be greatly facilitated by the government incentive policy pursued by the jurisdiction’s authorities in recent years. One of the characteristic manifestations is the procedure of company registration in St. Kitts and Nevis. It is standardised and simplified as much as possible in all important aspects: requirements to the package of documents, loyal corporate legislation, licensing, taxation, reporting. This is another reason why we recommend our readers and clients to open a company in St Kitts and Nevis.

Questions and Answers

What documents do I need to prepare to successfully pass the due diligence process? Or will it be formal?

Compliance and KYC in St Kitts and Nevis when registering a company and opening a corporate bank account will not be formal, this view is wrong. Jurisdictions value their reputation and will not risk it. When documents are emailed rather than submitted in person, notarisation and, if applicable, English translation will be required.

The minimum list of documents to prepare in advance is:

  • proof of identity – passport, driving licence or passport;
  • documentary proof of the address of actual residence – for example, a utility bill (not older than 3 months);
  • a letter of recommendation from a professional with whom you are co-operating: a lawyer, a legal attorney, a business manager;
  • a detailed account statement and a letter of recommendation from the bank you are using;
  • a detailed CV;
  • several photographs.

What course of action do you recommend when registering a company in St Kitts and Nevis?

The strategic decision is to seek the assistance of our specialists. This way you will be able to eliminate technical difficulties and speed up the procedure. If you do it yourself, the risks will be higher.

The optimal order of actions, excluding individual peculiarities of a particular case, is as follows:

  • selection of the name of the company;
  • preparation of articles of association;
  • selecting and appointing a registered agent;
  • obtaining a licence;
  • direct registration of the company;
  • opening a corporate bank account;
  • obtaining a tax identification number.

What services can be included in the extended service packages when registering a company in St. Kitts and Nevis?

It all depends on the client’s requirements, business peculiarities and a specific case. Note that basic packages often do not include the opening of a bank account. This gives additional freedom, but practically excludes the possibility of starting a business quickly.

Services that business people may be interested in when starting a business in St Kitts and Nevis:

  • pre-approval – submitting pre-applications to open an account with several banks at once;
  • selection of office space;
  • establishing a real economic presence in St Kitts and Nevis;
  • additional corporate document package;
  • nominal service;
  • launching complex projects (e.g. company + trust or foundation) for effective asset protection;
  • preparation of tax optimisation recommendations;
  • selection of investment properties for participation in the CBI programme;
  • organising a visit to St. Kitts and Nevis.

What information should be in the standard articles of association when registering a company in St. Kitts and Nevis?

When starting a business, it is allowed to use a standard articles of association, but this option is not optimal. Any standard document can be used as an example, but it must be customised to suit the situation.

The information that must necessarily be in the articles of association are:

  • the name of the company;
  • the purpose of the business;
  • standard statement;
  • the term of validity (if you want to limit it initially);
  • information on the registered agent;
  • details of the founders;
  • registered office address;
  • share details (if applicable);
  • information on the directors of the company in St Kitts and Nevis.

Note that the articles of association must be signed by all the incorporators.

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