Incorporating in Saint Kitts and Nevis
Nevia Corp and LLC
Tax Advantages and Benefits

In Saint Kitts and Nevis, both the Nevis Business Corporation Ordinance (NBCO) of 1984 and the Nevis Limited Liability Company Ordinance (NLLCO) of 2017 provide advantageous tax benefits and exemptions for entities structured to operate primarily outside of Nevis. Here’s a breakdown for each:

Nevis Business Corporations
Nevis Business Corporation Ordinance 1984 (NBCO)

For companies incorporated under the NBCO, Nevis offers several tax benefits, especially for non-resident businesses:

1. Exemption from Local Taxes

Companies incorporated under the NBCO that operate exclusively outside Nevis, meaning they do not conduct business locally, are generally exempt from Nevis taxes on income and profits. This includes:

• No Corporate Income Tax on income earned from business activities conducted outside Nevis.
• No Withholding Tax on dividends, interest, or other payments made to non-residents.
• No Capital Gains Tax on gains realized outside of Nevis.

 2. No Estate, Inheritance, or Gift Taxes

Shares or other ownership interests in NBCO corporations are not subject to estate, inheritance, or gift taxes in Nevis, regardless of the residency of the shareholders.

3. No Tax on Dividends and Distributions

Dividends and other forms of distributions to non-resident shareholders are exempt from taxation in Nevis, provided all income is derived from outside the jurisdiction.

4. Privacy and Confidentiality Protections

NBCO corporations benefit from strict confidentiality rules in Nevis, and shareholder and director information is not required to be publicly disclosed.

Nevis Limited Liability Company
Companies Formed under the Nevis LLC Ordinance 2017 (NLLCO)

The Nevis Limited Liability Company Ordinance provides similar benefits for LLCs, which are particularly favored for flexibility and tax neutrality. For LLCs whose members and managers are non-residents and who conduct all business and management activities overseas, the following tax exemptions apply:

1. Exemption from Local Taxes on Foreign-Sourced

Income
LLCs with non-resident members and management, conducting no business in Nevis, are exempt from:

– Income Tax on all foreign-sourced income.
– Corporate Tax on any income generated outside Nevis.

2. No Withholding Tax on Distributions

Distributions made by the LLC to non-resident members are exempt from withholding tax in Nevis.

3. No Capital Gains Tax

LLCs are exempt from capital gains tax on assets or investments held outside Nevis, which applies to gains from the sale or transfer of interests.

4. No Estate, Inheritance, or Gift Taxes

Ownership interests in a Nevis LLC are exempt from local estate, inheritance, or gift taxes, providing protection for succession and inheritance planning.

5. Minimal Reporting Requirements and Privacy

Nevis LLCs enjoy strong confidentiality protections, with no obligation to publicly disclose the identities of members or managers. Additionally, there are minimal reporting requirements, which lowers compliance costs and maintains privacy.

Additional Considerations

Tax Neutrality for International Businesses

Both NBCO corporations and NLLCO LLCs are structured to offer tax neutrality, meaning they typically incur no local taxes when operating as non-resident entities. However, U.S. citizens, U.K. residents, or others from countries with worldwide taxation may still be required to report income to their home tax authorities.

Annual Fees

While Nevis does not impose taxes on these entities for foreign-derived income, there are annual registration and renewal fees, which are relatively low.

These tax benefits make Nevis an attractive jurisdiction for international businesses, providing a highly tax-efficient environment for corporations and LLCs operating abroad.