Company Formation in Saint Kitts & Nevis

What is the process to register a company in Saint Kitts and Nevis

Starting a business, in Saint Kitts and Nevis involves following a series of steps to establish and register a company in the region.

Necessary documents

To begin the process, entrepreneurs need to prepare documents such as a completed application form, articles of incorporation, memorandum of association, declaration of compliance, and proof of payment for the registration fee. These documents are then submitted to the Companies Registry along with information about directors and shareholders.

There is no minimum share capital requirement for corporations allowing them to start without needing a huge capital amount initially. This flexibility is beneficial for startups and small companies looking to enter the market without barriers.

Remote Incorporation

Remote incorporation has become a trend in jurisdictions like Saint Kitts and Nevis due to technological advancements. This method allows for the completion of all procedures fully online, making it convenient for businesses operating internationally.

With this technological integration, businesses have the opportunity to establish entities in jurisdictions without the need for physical visits or unnecessary travel.

Saint Kitts and Nevis offer this option for incorporations to give individuals the flexibility and convenience to set up companies under their jurisdiction. Additionally, their remote incorporation services include guidance on the submission and processing of requirements, paperwork, and compliance online. This smoothens the path for organizations looking to expand or enter markets without much movement.

How to Register a Company in Saint Kitts and Nevis

The registration process begins with selecting a name for your business. Subsequently, ensure all necessary preparations and documents are in order, such as the Memorandum and Articles of Association outlining the company’s framework, objectives, and policies.

Once all documents are prepared, submit them along with the required forms and fees, to the Companies Registry. Typically, the registration procedure is completed within two weeks.

If your application gets approved, you will then be given a Certificate of Incorporation. This certificate lets you move forward with setting up a bank account for your company in Saint Kitts and Nevis.

How high are the taxes applicable to companies registered in Saint Kitts and Nevis?

As a nation, Saint Kitts and Nevis is an option for individuals seeking a favorable tax environment where non-residents are not subject to income, corporate capital gains, inheritance, or withholding taxes.

Corporate Taxes

Companies operating in Saint Kitts and Nevis benefit from exemptions on income, capital gains, and dividends taxes.

The absence of such burdens in this jurisdiction can be advantageous for businesses looking to maximize profits.

Tax Treaties with other Countries

To avoid taxation and facilitate business operations, Saint Kitts and Nevis has established Double Tax Avoidance Agreements (DTAAs) with several countries including the United States (for social security services only) Denmark, Norway, Sweden, the United Kingdom, as well as some Caribbean Community (CARICOM) nations. Additionally, there are Double Taxation Conventions (DTCs) in place with Monaco, San Marino, and certain CARICOM countries. 

The DTAA framework ensures that income earned in another country is not subject to taxation. Through these agreements, clients can strategically organize their businesses to reduce tax obligations while adhering to mandates and taking advantage of the business climate offered by Saint Kitts and Nevis.

Bookkeeping and audit requirements for companies in Saint Kitts and Nevis

Accounting and auditing practices in Saint Kitts and Nevis adhere to standards that promote transparency and reliability for businesses operating within the country.

Accounting and Bookkeeping

Companies follow the IFRS accounting standard which is commonly adopted across Caribbean  Countries as well.

Auditing

Businesses in Saint Kitts and Nevis must maintain accounting records for auditing purposes to comply with regulations. The auditing process may vary based on the company’s size and structure. There are no rules regarding accounting practices or audits, however.

About the registry of companies incorporated in Saint Kitts and Nevis

Saint Kitts and Nevis requires all businesses being formed under their jurisdiction to be listed on their Company Registry.

Registry of Directors

The registry of directors in Saint Kitts and Nevis is managed by the Financial Services Regulatory Commission (FSRC). This ledger provides details about the individuals who serve as directors of registered businesses within the region. The primary goal of this organization is to supervise the formation and management of companies in the nation. They ensure that all records concerning director appointments, departures, and other pertinent information are properly maintained.

Nevertheless, the directory of directors in Saint Kitts and Nevis is not publicly accessible. This data is confidential. They can only be accessed by authorized individuals, such as government bodies and law enforcement agencies. Furthermore, access to this information is restricted for significant compelling reasons only. These measures aimed at maintaining confidentiality are essential for safeguarding the privacy and security of directors and their businesses.

Registry of shareholders in Saint Kitts and Nevis

Saint Kitts and Nevis also require a list documenting the shareholders of companies falling under its jurisdiction. In compliance to good governance and transparency, all companies incorporated within this region are mandated by the Companies Act to submit a record of their shareholders. This record should encompass details including names, addresses, and shares held by each shareholder within the company.

These documents are stored at either the company premises or another approved location within Saint Kitts and Nevis authorized by the Registrar of Companies.

The registry undergoes inspection only by a competent authority and only in significant situations. Any alterations to the document like share transfers or new share issuance should be promptly documented to maintain the accuracy and completeness of its contents.

Are nominee services permitted in Saint Kitts and Nevis?

In Saint Kitts and Nevis, a nominee director or shareholder is authorized to hold shares or act as a director on behalf of the owner. Nominee services are widely used in business practices, and they form part of asset protection strategies. In this jurisdiction, beneficial owners can maintain confidentiality through the use of nominee directors particularly when ownership information disclosure is required by law.

Despite legalizing this practice, Saint Kitts and Nevis has implemented frameworks to prevent the misuse of nominee services for illicit purposes. These measures aim to ensure the utilization of this service by authorized individuals within the framework of existing regulations.

Economic substance requirements for incorporation in Saint Kitts and Nevis

Saint Kitts and Nevis have criteria for substance and residency for individuals looking to establish companies within their jurisdiction.

It has its rules on Economic Substance that expect businesses to have a presence and engage in real business activities within the country. They need to have an actual address, operate from a physical office, and hire locals as employees. Moreover, companies are required to conduct business operations according to their stated goals during the registration process. 

These regulations aim to encourage businesses to make contributions to the economy by establishing operations in the region. Failure to meet these conditions could lead to penalties or the loss of tax benefits.

Residency requirements of shareholders and directors in Saint Kitts and Nevis

Regarding residency requirements for shareholders and directors in Saint Kitts and Nevis, there are no mandates for shareholders to reside in the country. Shareholders can be individuals or corporations from any global location. 

However, it is advisable – though not mandatory – to have a local director appointed for legal compliance and smooth operations.

Having a local director, in place can offer benefits such as access to local resources, understanding of local business customs, and maintaining a physical presence in the area.

Opening a bank account for a company incorporated in Saint Kitts and Nevis

When it comes to banking with a company in Saint Kitts and Nevis, international businessmen and investors can enjoy enhanced privacy, asset protection, and tax efficiency.

The country boasts an established banking sector with institutions that cater to offshore entities. These banks typically offer a range of services including multi-currency accounts, online banking facilities, investment opportunities for individual clients, and specialized support for corporate customers.

LegalBison specializes in providing banking solutions that can assist you in opening a corporate bank account while ensuring compliance with laws and regulations.

Our goal is to help your organization maximize its benefits. Whether you require a business account or tailored services like merchant accounts or investment options, our consultants are prepared to guide you in selecting the best fit based on your specific needs and expectations.

The different types of companies available in Saint Kitts and Nevis

Saint Kitts and Nevis hosts various company types within its jurisdiction.

• An International Business Company (IBC) or Limited Liability Company (Ltd) in Saint Kitts and Nevis is a business structure that separates owners from the company itself protecting the owner’s assets against creditors;
• In Saint Kitts and Nevis, a trust is an arrangement that serves as an entity offering asset protection, privacy, and estate planning for designated beneficiaries;
• A foundation in Saint Kitts and Nevis is an organization that functions usually for charitable purposes such as science, education, culture, and religion.

International Business Companies (IBCs) are well known for their operations in sectors like manufacturing, shipping, and finance. They enjoy tax exemptions in their home country and also benefit from laws that prioritize confidentiality and privacy making them an attractive option for business and investment ventures.

Another popular structure is the Limited Liability Company (LLC) which blends the characteristics of both partnerships and corporations. It establishes separate legal identities for the business owner and the business itself. This setup shields owners from the company’s liabilities thus shielding them from creditors.