Foreign businessmen are welcomed to start the process of company formation in St. Kitts & Nevis, as there aren’t any foreign investments impediments. More so, St. Kitts and Nevis company formation can be completed as both an onshore or offshore company.
The registration process is similar in both cases, but significant differences can appear on the modalities of doing business and taxation matters. While an onshore company is liable to all the corporate taxes imposed by the local tax law, offshore incorporation provides the opportunity of being exempted from paying a wide range of taxes.
This tax advantage is given because offshore businesses do not engage in commercial activities in the place where they have their tax residency (St. Kitts and Nevis in this case). Our consultants can help investors complete the legal formalities for company incorporation in St. Kitts, therefore do not hesitate to address us for assistance.
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What are the main incorporation requirements for a legal entity in St. Kitts and Nevis?
Whether a businessmen will opt for onshore or offshore company formation, the requirements for starting a company are the same. A local business form must gain its legal recognition, and this is done by completing the steps mentioned below:
- select a trading name that is available for usage (it must be unique);
- draw and sign the company’s statutory documentation (the articles of association);
- obtain a tax identification number;
- obtain the necessary business permits and licenses.
Legal entity for offshore incorporation in St. Kitts and Nevis
In the case in which a businessman opts for an offshore company, the legal entity for which he/she should start the process of company incorporation in St. Kitts is the International Business Company (IBC). There are other available options in this sense, such as the Protected Cell Company (PPC) or the Exempted Company, but the IBC is the most popular. Below, you can observe some of the requirements imposed if you want to open a company in St. Kitts:
- a company can be set up with minimum 1 shareholder/director (there aren’t any residency requirements);
- it takes around 2-3 days to set up a company in St. Kitts;
- the company benefits from a 0% tax policy on the payment of corporate taxes, the withholding tax, the VAT, the capital gains tax;
- although the law does not impose a minimum share capital requirement, the investors must specify in the company’s bylaws the authorized minimum share capital, which is usually $50,000;
- business forms are incorporated as per the rules of the Business Corporation Ordinance 1984 and are supervised by the Financial Services Regulatory Commission.
What are the accounting obligations?
For an onshore business, the accounting obligations must follow the local accounting rules, which involve the submission of financial documents to the financial authority or even audit obligations. For offshore companies, accounting obligations are far less strict, as the law does not require them to report and submit their accounts following the same system available for onshore companies.
However, this does not mean that the offshore business is completely exempt from any obligations. For instance, it must maintain proper bookkeeping attesting the company’s transactions. At the end of the financial year, the company must complete its financial statements and submit them to the financial authority, these being the sole procedures the company is imposed with.
Investors interested in St. Kitts and Nevis company formation are invited to contact our team for further details concerning the incorporation process, tax/accounting procedures and any other obligations the legal entity can have during a financial year. You can also address us if you want to open an onshore or offshore bank account.