Seeking a jurisdiction to register your foreign company and safeguard assets? For your purposes, Nevis is a reliable choice. With its uncomplicated registration procedures, minimum taxes (or even tax exemptions), and reliable asset protection, this Caribbean island is indeed one of a kind. In terms of benefits, Nevis by far outshines any other available alternatives. Although the Cayman Islands provide comparable asset protection, establishing a company there will cost you more. Unlike the above jurisdiction, Nevis offers convenience, security, and affordability for LLC incorporation, all rolled into one.
Privacy and confidentiality
One of the most attractive benefits of a Nevis LLC is the privacy and confidentiality that its members enjoy. Unlike so many other offshore states, Nevis does not require the disclosure or registration of LLC members and managers. The only information that is held by the Nevis Registrar of Companies is the name and address of the registered agent, name and date of LLC formation, as well as its authorized capital amount.
This means that the identities of any Nevis LLC members and managers are accessible to neither the public nor the creditors or authorities. Knowing it, you will be able to protect your reputation, avoid unwanted attention, and prevent identity theft more efficiently.
With its strong privacy laws that prohibit the disclosure of any data relating to a Nevis LLC without its members’ consent or a court order, Nevis is indeed a safe haven for the above companies. The penalty for breaching these laws is a fine of up to USD 10,000 or imprisonment of up to two years, or both. The jurisdiction does not participate in any automatic exchange of information agreements, with the Common Reporting Standard (CRS) and the Foreign Account Tax Compliance Act (FATCA) among them. It means that your financial information is never shared with any other countries.
Security and asset protection
Another perk of a Nevis LLC is the supreme security and asset protection it offers. Being a separate legal entity, a Nevis LLC enjoys the right to keep its assets and liabilities separate from those of its members. In this case, the members are not personally liable for the obligations of the LLC, and their personal assets are not at risk should anyone file a lawsuit against it.
Considering that Nevis has some of the most favorable asset protection laws in the world, it is super difficult for creditors to reach the assets of either a Nevis LLC or its members. Here’s what we mean exactly:
- A creditor must post a bond of at least USD 25,000 before filing a lawsuit against a Nevis LLC or its members in Nevis courts. This bond is non-refundable and serves as a deterrent for frivolous and/or vexatious claims.
- They also must prove beyond a reasonable doubt that the transfer of assets to a Nevis LLC was made with the intent to defraud the creditor. This is a very high standard of proof that is rarely met by creditors.
- The statute of limitations for fraudulent transfer claims is two years from the date of the transfer or the date the creditor discovered or should have discovered the transfer in question, whichever is earlier. This means that after two years, no creditor may ever challenge the validity of an asset transfer to a Nevis LLC.
- A creditor cannot seize or attach the assets of a Nevis LLC (or its members, for that matter) without a charging order from a Nevis court. Such an order grants the creditor the right to receive the distributions or profits that the member would otherwise receive from the LLC. However, a charging order does not authorize the creditor to interfere with LLC management or to force the sale or liquidation of the LLC and its assets. It is the sole and exclusive remedy for a creditor against a Nevis LLC, which means that the creditor may not pursue any other legal protections.
These laws are a strong shield for the assets of a Nevis LLC and its members and discourage creditors from pursuing legal action against them.
Tax efficiency
Being exempt from any taxes in Nevis as long as they do not conduct business or own properties there, Nevis LLCs boast high tax efficiency. This means that a Nevis LLC does not pay any income, corporate, capital gains, withholding, or estate tax in Nevis, the same way it does not pay stamp duties.
In Nevis, LLCs are tax-transparent or pass-through entities, which means that they are exempt from income and profit tax at the entity level. Instead, their profits are passed through to the members responsible for reporting and paying taxes on their income share back home, as provided for under the tax laws in these home jurisdictions.
This allows the members of a Nevis LLC to benefit from tax planning strategies and optimize tax liabilities, depending on their tax residency and the tax treaties that their country has with other states.
Flexibility and simplicity
A Nevis LLC also offers an easy registration process, as well as a customizable and adaptable structure and management.
To form a Nevis LLC, you only need to file a simple document called the Articles of Organization with the Nevis Registrar of Companies and pay a one-time registration fee of USD 235. You do not have to submit any personal or financial information, or other documents like a business plan, memorandum of association, or articles of incorporation.
To manage and operate your Nevis LLC, please find a registered agent and a registered office in Nevis. No directors, officers, or shareholders are necessary, as the LLC is managed by its members or by one or several managers appointed by such members.
One more option to enjoy with your Nevis LLC is that you can customize its structure and management by drafting an operating agreement. This contract defines the rules for running your LLC. The Operating Agreement may include various aspects, e.g., the members’ and managers’ rights and duties, profit and loss sharing, income distribution, membership changes, LLC termination, and dispute resolution.
Interested in setting up a brand-new LLC in Nevis? Get in touch with International Wealth today! Not only will our team help you with the registration, maintenance, and compliance of your Nevis LLC but also answer any questions you may have.
