Reasons Why You Should Consider Registering An LLC In Nevis
Nevis is part of a Caribbean country called the Federation of St Kitts and Nevis. The country consists of two islands, Nevis being the smaller one. There is a reason why the word ‘federation’ is used in the country’s name. Nevis is an autonomous island to a certain degree but more important is the fact that it has corporate laws that are dissimilar to the corporate laws on St Kitts. The corporate legislation of Nevis offers more benefits to foreign entrepreneurs registering business companies on the island. Probably, the most advantageous type of company to set up in Nevis is a Limited Liability Company. Below we discuss the main reasons why you should consider registering an LLC on this Caribbean island.
Nevis has been an offshore jurisdiction for years and this is a well-known fact. Companies registered offshore used to be highly popular with entrepreneurs from many onshore countries because they allowed saving on taxes considerably in the first place. Besides, the information about the ultimate company beneficiaries was kept in secrecy. However, some 20 years ago, a process was launched that is now often referred to as a ‘de-offshorization campaign’. The matter is that some offshore-registered companies have been found to laundry money and even finance terrorists. Today, European, American, and international financial regulators are spending great effort on cutting these practices short. They are applying pressure to offshore jurisdictions making them raise their taxes and exchange the information about the business transactions performed by the companies registered on their territories.
This is why offshore countries are not so attractive any longer, because they are losing the advantages that they used to have before. However, they haven’t lost all of their advantages. Most offshore jurisdictions are small island states and they need foreign direct investments in order to sustain their economies. Thus, they try to maneuver between meeting the internationally imposed requirements and offering perks to foreign business people. Nevis in particular has been especially efficient in these maneuvers. It may sound quite surprising but Nevis is actually benefiting from the de-offshorization campaign. While other offshores are becoming less and less attractive for international entrepreneurs, Nevis has managed to preserve many (even though not all) of its advantages. Thus, registering an offshore LLC in Nevis remains beneficial in many respects.
Now Nevis exchanges its resident companies’ financial information in accordance with the CRS (Common Reporting Standards). At the same time, if your Nevis-registered LLC company does not engage in any business activities on the territory of the country, it is not taxable there. Yes, you will pay 0% in Nevis taxes if your LLC registered there derives profits from foreign business operations only. At the same time, if you do business in Nevis, the taxes to pay are going to be as high as they are in first-world countries.
Another important reason why you might want to set up an LLC in Nevis is the opportunity to protect your assets from creditors and greedy government agencies. Suppose a creditor sues your Nevis-based company in another country and the law court there makes a decision that is unfavorable to you. Well, for the decision against your company to come into force, it has to be sued in Nevis. Because yours is a Nevis company! Law courts in the country have little regard to the decisions made by foreign judges. If the creditor wants to take your LLC to court, it has to be a Nevis court. In other words, only a Nevis judge can determine if a company domiciled in the country is at fault or not. Why are Nevis-based companies seldom sued? Because the corporate legislation efficiently protects local business owners and it is highly challenging for the plaintiff to prove that the defendant is guilty. Moreover, the plaintiff has to pay a considerable amount of money before he or she can appeal to court while according to statistics, the plaintiff will lose the case most of the time. Thus, suing a Nevis-based LLC is a risky enterprise in many cases.
Suppose now that the plaintiff has managed to conclusively show that your Nevis-based LLC is at fault. For example, he/ she has proven that your company owes him/ her some money. What can he/ she count on? Only on the income that your LLC makes such as dividends, for example. Fixed company assets as well as company property cannot be used to repay debts. This is one of the reasons why many foreign entrepreneurs who have companies registered in Nevis assign their personal property to the company. If you reside in a house that belongs to your LLC, it cannot be taken away from you under any circumstances.
With the fiscal information exchange, the operations that your Nevis-based LLC performs are transparent to your home country’s fiscal authorities. You cannot evade taxes these days. However, this information as well as personal data of the company owner(s) are not available to the public. Thus, if you do business from Nevis, neither your competitors nor fraudsters can gain access to the details of your business operations.
There are other important reasons why establishing an LLC in Nevis can be beneficial. (You are welcome to follow the link to the Internet portal that provides international offshore services if you’d like to learn more about them.) The jurisdiction manages to remain attractive to foreign entrepreneurs even though the degree of attractiveness has become a bit lower over the recent years. Anyway, many businesspersons from the USA in particular register LLCs in Nevis because there are some important perks that cannot be found in their home country. The US taxes are not as high as they are in some Western European countries, but Americans who choose to conduct business via their Nevis-based companies are able to save on taxes anyway.