Intro to a Nevis LLC
The Nevis jurisdiction is “No-Tax” offshore domicile operated by the small Caribbean island of Nevis within the country of St Kitts and Nevis. St Kitts and Nevis an independent sovereignty and is not a crown dependency like the Channel Islands, and Nevis is not connected to another larger dependency. St Kitts and Nevis has become infamous in recent years for their instant (6+/- months) passport program.
Want to find out more information about a Nevis LLC?
Nevis is a great place to incorporate.
Single Member LLC’s
A distinct advantage of a Nevis LLC is the ability to incorporate with a single member. Although Nevis isn’t the only place this is possible, the strong asset protection laws of Nevis are favorable compared to other jurisdictions.
Easy Corporate Compliance
Unlike other jurisdictions like HK, The Nevis LLC does not have to face mandatory audits, and corporate compliance is minimal. There are very few company records to be maintained like corporate minutes. Your company meeting can be held anywhere, and an operating agreement can be tailored to your exact specifications.
No Resident Directors
A Nevis LLC can be formed without mandatory resident directors (such as Ireland, which requires one; or Singapore which requires 2 citizens or permanent residents of Singapore)
Strong Asset Protection
To bring an action in Nevis against your corporation the creditor would need to post a $25,000 cash bond with the court in addition to any legal fees. It might not be as strong as the Cook Islands, but Nevis is a solid choice from an asset protection standpoint.
Be careful if you start a single member LLC in the United States!
USA domiciled single member LLC’s have been perceived as risky because they don’t have outside-in asset protection, or ‘personal lawsuit’ protection.
There is precedent caselaw where with single member LLC’s in and is evidence that the best place to operate an LLC in the US is within the states of Wyoming, Delaware or Nevada. This is because of charging order protection which is tested and proven by caselaw.The State of Wyoming has statutes that specifically provide for charging order protection for single member LLC’s.
Nevis offshore statutes for Nevis IBC’s and Nevis LLC’s are actually derived from US jurisdictional law in the states of Delaware and Wyoming, respectively. A single member LLC in Nevis has charging order protection, and other benefits of a Wyoming LLC, located in a jurisdiction offshore, with Nevis courts governing. All the benefits of the strongest LLC in the United States, located offshore in Nevis.
Nevis has no connection to US court system or governance, they simply borrowed the jurisdictional law because they felt it was the strongest upon which to build their offshore domicile laws.
The Confidential Relations Act of 1985 guarantees the confidentiality of Nevis offshore companies and bank accounts.
Nevis Has No Public Registry – Nevis does not have a publicly accessible database of corporate records. Only the government of St Kitts and Nevis and lawyers who practice in Nevis can access this database.
Unlike other jurisdictions, no greedy creditor can get even the most basic information about your LLC – such as when it was filed, who it was filed by, or who owns the company. Your registration is essentially anonymous.
How is an LLC different from a Company limited by shares?
This may be basic for some of you, but its a question I get asked alot so I thought I’d touch on it.
A member of a Limited Liability company is limited to the amount of contributed capital they make to capitalize the company and ‘buy’ a membership interest. An LLC is comprised of membership interest whereas a stockholder in a company limited by stock. In the traditional sense of the word this limits owners personal liability by their stock investment.
I’ve heard Hong Kong is the best place to incorporate offshore, is this true?
Hong Kong does offer some distinct advantages over other jurisdictions. For starters, a Hong Kong company that operates “offshore” or in a “no-tax” environment, is actually not a distinct offshore jurisdiction. Hong Kong is one of the best jurisdictions in the world, it does have its downsides, such as yearly audits.
Also, you will likely have to travel to hong kong and make a deposit to open a bank account there, unless you pay a premium fee for a full service incorporation and bank introduction.
Hong Kong is a fantastic place to operate offshore. Personally, I would incorporate in Hong Kong if I were operating any sort of fund. Also, Hong Kong is great if you are sourcing from China, or you want a very professional appearing company. Hong Kong actually doesn’t have a separate offshore legislation, so this is favorable for those who want to be ‘onshore’ and offshore. Similar to Singapore in that respect.
Do you want a yearly audit? If not, then don’t operate in Hong Kong.
Your Nevis LLC is backed by strong laws – Nevis is a common law jurisdiction with LLC statues derived from the best state to incorporate an LLC in the US – Wyoming.
Your Nevis LLC is private – Your name is not on the company registry, because there is no publicly accessible company registry
You can manage the Nevis LLC yourself – as a single member LLC. You also have the choice of a manager managed LLC and multiple members, or a member managed LLC with multiple members. LLC’s are for the most part very flexible.
A Nevis LLC is perfect for someone who
- Is the sole owner of their business and doesn’t want to have another director.
- Wants the benefit of strong asset protection.
- Want a private and secure registration.
- Doesn’t want to pay for nominee directors.
- Doesn’t want to face yearly audits.
- Desires a relatively simple and easy incorporation offshore.