St Kitts and Nevis. Offshore LLC

The Nevis Offshore LLC 

Be it to minimize probate, provide asset protection or other legitimate reason, a Nevis offshore LLC offers greater privacy than other jurisdictions.

 Review of the Nevis Offshore LLC

While a Wyoming LLC (our favorite in the US) is easy to set up and inexpensive to run, owners and managers of a Nevis LLC are not registered by the government anywhere, which provides for complete secrecy. In fact, naming a member or manager in any legal action brought against the company is legal grounds for dismissal.

 

We visited the regulator, the Nevis Financial Services Department and met with registered agents.  

 

Nevis Financial Services Department (pictured above). This is the regulator which oversees the formation of offshore LLCs. They are courteous and business minded. They have also published a list of registered agents. At the bottom of the page is their list of fees in USD.

 

Registered Agents. One must use the services of a registered agent to form an LLC. Their level of sophistication varies greatly. This being a small country, their offices are literally a short walk from each other. To note, the entire process can be completed remotely.

 

Required documentation by registered agents.  It could be argued that an applicant needs to disclose more information to registered agents that it would in the US. This is counterintuitive, considering Nevis sells the concept of “secrecy”. A bank which provides those services for its clients pointed out that this is due to their own compliance requirements. Like for the investment process, a good due diligence process is critical. That is why we chose to physically meet with them.

More information. Our library contains a review of Registered Agents, Application to form an LLC and IBC, the Non-Cooperative Jurisdiction List published by the Nevis Financial Services Commission, Offshore Bank Account application and other materials.

Finally, the government has published the information shown below regarding the advantages of a Nevis LLC.

The Nevis LLC

is a business entity that provides an alternative to those who might consider using corporations or partnerships. An LLC formed under the Nevis Limited Liability Company Ordinance shall be a legal entity with separate rights and liabilities, distinct from its managers or members. Therefore, the LLC shall be liable for its own debts, obligations, and liabilities.

An LLC formed in Nevis may be used for any lawful business purpose. It may be used for any legitimate business venture or professional practice including international financing arrangements for US or non-US operations, real estate holdings, manufacturing concerns and as an operational or investment vehicle for international trusts.

The owner of a Nevis LLC is referred to as a member, who may be thought of in the same way as one thinks of partners in a partnership or shareholders in a corporation. Their precise characterisation depends on the nature of the LLC's management. One or more persons can form a Nevis LLC, such person or persons do not have to be a member of the LLC. The Nevis LLC should have at least one member and such member can be the Manager or any other person or business entity. The LLC can be supervised exclusive of the members or by all of the members. Corporations are permitted to act as Managers and/or members. The Nevis LLC does not require the appointment of directors or officers. This allows for there to be flexibility in the management structure.

By virtue of the legislation, a Nevis LLC is required to maintain a registered agent in Nevis. Failure to do this can result in the dissolution of the LLC. A Nevis LLC is formed by filing Articles of Organisation with the Registrar of Offshore Companies. No initial capital is required at the formation of a Nevis LLC and the LLC is not required to issue shares to commence operations. The members of a LLC may enter into written or verbal "Operating Agreement" but this is not mandatory unless specified by the articles of organization. The company's operation and the rights among the members are defined through the operating agreement.

A foreign LLC (or similar entity) may easily convert to a Nevis LLC by a simple conversion procedure. Other foreign entities, such as corporations, may convert after transferring their domicile under an equally simple process. There is also provision for emergency transfer of domicile.

The Nevis LLC Ordinance gives members added protection by stating explicitly that naming a member or manager in any legal action brought against the company is legal grounds for dismissal or at the very least motion for a  mis-joinder.

Source

List of Goverment Fees