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Registering a Company in Saint Kitts and Nevis

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A great number of entrepreneurs from different countries and especially from the USA and Canada choose the Federation of St Kitts and Nevis in the Caribbean to register offshore companies there. The country has a favorable geographical position, a sensible tax system, and a well-developed and stable financial sector, which attracts business people from other countries.

The sectors of the economy in St Kitts and Nevis that attract the largest portions of foreign direct investments include the financial sector, real estate, informational technologies, and production. However, before launching a business venture in St Kitts and Nevis, you should learn about the legislation that regulates business activities in the country. Below we briefly discuss the main advantages of St Kitts and Nevis for offshore company formation and the process of its formation.

What is attractive about St Kitts and Nevis for foreign investors?

Registering a company in St Kitts and Nevis is an attractive opportunity for several reasons. The main of them include the following ones:

  • A favorable business environment. The authorities of St Kitts and Nevis are friendly to entrepreneurs. There you will find an advanced financial infrastructure, a stable political situation, a high level of personal security, and access to international markets.
  • A favorable geographical position. St Kitts and Nevis is located in the Caribbean Sea, which makes this jurisdiction a good platform for trading with the Americas in the first place. Besides, the islands have an advanced infrastructure including an international airport and a few seaports.
  • Lack of red tape. Registering a company in St Kitts and Nevis does not involve too much bureaucracy, which is an important factor for a foreign businessperson.
  • Flexibility. Companies registered in St Kitts and Nevis can have different forms of ownership. You can set up an IBC or an LLC, for example. You will have to make a decision and choose the type of company that you want to establish.
  • Citizenship-by-investment program. St Kitts and Nevis administers an immigration program that allows acquiring citizenship of the country in exchange for investments. It is the oldest such program in the world and it has earned itself a very good reputation over the years.
  • Tax benefits. The taxation system is beneficial in St Kitts and Nevis. Foreign entrepreneurs can make use of various tax incentives available in the country. Incomes made in foreign countries are not taxed in St Kitts and Nevis and the country also charges no taxes on capital gains or inheritance.

Registering a company in St Kitts and Nevis: the procedure step by step

Company registration in a foreign country can be a rather challenging process but everything will be fine if you take it step by step and apply for some professional assistance. The procedure of registering a company in St Kitts and Nevis consists of the following steps:

  • Choose the company type. As a rule, foreign entrepreneurs register Limited Liability Companies or International Business Companies in St Kitts and Nevis even though other forms of company ownership are also available. You will have to make a choice.
  • Come up with a unique name for your company.
  • Prepare the application documents and submit them to the Ministry of Justice of St Kitts and Nevis. The key documents include passport copies and proofs of addresses for company founders. Please note that you will also have to supply documents that confirm the legality of your investment capital.
  • Pay the company registration fee.
  • Open a bank account and deposit the charter capital there (if necessary).

We have to note that the company registration condition may change and this is one of the reasons why you should seek professional support in the process of establishing a company in St Kitts and Nevis.

What types of companies are available to foreign investors in St Kitts and Nevis?

You can choose from several forms of company ownership available in St Kitts and Nevis:

  • Limited Liability Company (LLC). This is the most popular type of company ownership form. Understandably, foreign investors choose this company type because they want their liabilities to be limited by their contributions to the charter capital.
  • International Business Company (IBC). If you register an IBC in St Kitts and Nevis, it is going to be tax-exempt in the jurisdiction on the condition that you do all business abroad.
  • Limited Partnership. Even though the Partnership is called ‘limited’, one of the Partners has to be a General Partner with unlimited liability. Liabilities of all other Partners can be limited.
  • Company Limited by Guarantee. This form of company ownership is popular with NGOs and charitable organizations.

In addition to that, you can register a holding company in St Kitts and Nevis to manage your assets and your investment portfolio. This is a bit more intricate task, however, and it requires professional support.

What documents do you have to submit when registering a company in St Kitts and Nevis?

You will have to submit the following documents when setting up a company in St Kitts and Nevis:

  • Application for company formation.
  • Company By-laws that define the company’s organizational structure, business objectives, and areas of business activities.
  • Company founders’ identification documents.
  • Documents certifying the residential addresses of the company founders. These may be utility bills or bank statements carrying the address.
  • Documents confirming solvency of the company founders.
  • Bank receipts (for payment of the state duties and fees).

Please bear in mind that the exact list of the application documents will depend on the type of company that you are establishing in St Kitts and Nevis. If you are interested in establishing a company in the country from the comfort of your home, it is possible but the requirements are going to be a bit different again. You could not do without professional assistance if you would like to set up a company in St Kitts and Nevis remotely.

Taxation system in St Kitts and Nevis

Below we provide only the basic facts about taxes in St Kitts and Nevis. You will have to acquire more detailed information to be able to use the available tax benefits.

  • The corporate profit tax is 33% but companies making profits abroad and paying taxes in foreign countries are not taxed twice.
  • The personal income tax can be between 0% and 45% depending on the amount of income.
  • The VAT is 17% but some goods and services are exempted from the tax.
  • The property tax is around 0.2% of the appraised value of the property.

Conclusion

St Kitts and Nevis is a Caribbean country that attracts both novice and experienced investors due to its favorable geographical position and a flexible business environment. In addition, the climate is wonderful in the country and the citizenship-by-investment program that St Kitts and Nevis administers makes it possible to relocate and settle down there.

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