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Nevis LLC & Bank Account Formation & Cost

Why a Nevis company and bank account? Our extensive research indicates that the Nevis LLC offers the strongest asset protection of any offshore company. Furthermore, for a quarter-century, the island of Nevis in the Caribbean Sea has served as an asset protection and offshore banking leader. A former British colony, St. Kitts and Nevis gained independence in 1983. While other tax havens focus on other forms of asset protection, Nevis has especially concentrated on promoting the Nevis LLC and Nevis corporation. If you are searching for asset protection opportunities, the tropical paradise of Nevis may prove worth your while. 

Nevis LLC

You are probably familiar with Limited Liability Companies (LLCs). Often used in new business formation, these entities protect members of the Nevis LLC and its bank account and other assets from personal liability in case of lawsuits or debts. Businesspeople also use LLCs for domestic asset protection purposes. 

However, the standard LLC does have some drawbacks. In some states, the law does not allow certain professionals, such as physicians or accountants, to operate their practices using LLCs. The IRS does not tax LLC income directly, be default. For tax purposes, it treats those with LLC income as sole proprietors or partnerships. They must report such income on their personal tax returns. 

NOTE: Many tax professionals recommend an extra measure of safety by filling out an 8832 form for offshore LLCs. On that form one can elect disregarded entity (sole proprietorship) or partnership status. 

Lawsuit Protection 

If you want additional protection against potential lawsuits and creditors, establishing a Nevis LLC fills the bill. Nevis has a long history of offering LLCs for those seeking these privacy advantages. In fact, it was the first offshore jurisdiction to enact such statutes. Those laws are the strongest in the world when it comes to LLCs. 

Keep in mind that a Nevis LLC does not save on taxes per se if you are a U.S. citizen or resident. It does offer more privacy as well as asset protection than does an LLC established in the U.S. 

Personal Lawsuit Against a Nevis LLC Member

One great benefit of a Nevis LLC is that you do need partners or other members if you opt to create a single-member LLC. This is unlike the vast majority of US states where a one-person LLC does not protect assets when someone sues an LLC member. Conversely, with a Nevis LLC, you can protect assets that were titled solely in your name – such as a brokerage account. You can place them into single-member LLC to aid in asset protection. The Nevis LLC protects the owner of the single-member LLC from losing LLC assets in a personal lawsuit. While you control the LLC and make decisions, you are not the asset owner per se. Your LLC is. 

In a worst-case scenario, if a creditor wants to go after a Nevis LLC member, they have just one option. That is a charging order lien. However, even with such a lien, the creditor cannot go after the LLC or its underlying assets. 

 Under Nevis law, the creditor might receive LLC distributions, but that is all. If you are a U.S. citizen, your Nevis LLC can refuse to pay the creditor these distributions. The creditor receives nothing, knows that, and it unlikely to even attempt a charging order lien. In addition, a charging order lien is good for just two years, and is non-renewable. 

Business Lawsuit Against a Nevis LLC 

Let’s say the lawsuit comes on the other side of the fence. That is, instead of suing an LLC member, someone sues the company, itself. While the creditor might try to sue the LLC the law protects the individual owners (i.e. members). 

Moreover, the creditor must hire a local lawyer for representation. The plaintiff or creditor must pay their legal counsel whether or not they are successful. The loser must pay the court costs of all parties. In short, there are few practical reasons for a creditor to attempt to sue a Nevis LLC. 

Establishing a Nevis LLC

Creating a Nevis LLC takes just a few days. In an emergency, same-day establishment is possible. Emergencies may consist of court cases in which the defendant fears a judge will enter a judgment against him or her. It is best to set up the Nevis LLC prior to the legal decision. While other jurisdictions may require the establishment of an LLC for several years before all benefits become available, in Nevis that time period is just two years. That is, after two years, Nevis courts will not entertain cases of fraudulent conveyance against a member.  Even if someone brings a case immediately after asset transfer to the Nevis LLC, the barriers are extremely high for a judgment creditor. 

All Nevis LLCs require a registered agent. Such agents are special Nevis licensed professional business entities with the required amount of capitalization as per the country’s laws. When we establish a Nevis LLC, we automatically provide a registered agent. The registered agent renewable annually for a reasonable fee. 

Like other LLCs, shares are not part of a Nevis LLC. Instead, the LLC is funded by member contributions via an individual or a business entity. That is why the term shareholders is not used in connection with an LLC. Membership is the proper term. The contributions may come in the form of cash, property, or promissory notes. There is no initial capital requirement for LLC formation. 

Members, Managers and Company Name

The Nevis LLC must have at least one member and a manager. One person, however, can serve both roles. If desired, another person or business entity may serve in the managerial capacity. An LLC can have any number of members. In addition, there is no need to appoint officers to an LLC. 

Every Nevis LLC must have a unique name, and it must end with LLC, LC, L.L.C. or L.C. Furthermore, the Nevis Registrar of Companies must approve the name and will issue a Certificate of Name Recognition. 

Operating Agreement

The LLC’s operating agreement will spell out the terms and conditions for the dissolution of the LLC. Additionally, all members must consent to the terms and conditions in the document. Dissolution may specify that a certain period of time must pass, or a particular event. While an operating agreement is not mandatory, it is highly recommended. This is because, among other things, it specifies who the members are, asset protection provisions, and the guidelines among members. Plus, the LLC’s Articles of Organization may require it. 

Annual Renewal Fee

Besides fees for creating the LLC, owners should expect to pay a very affordable annual renewal fee. This includes the government fee, plus the legally required registered agent and registered office address. The LLC does not have to keep records in Nevis, or anywhere else. As of this writing, Nevis does not levy any type of tax on an LLC.  

Nevis Business Corporation 

Among the many advantages of an offshore Nevis business corporation is the lack of taxation and the need for filing an annual tax return. The government does not levy taxes, including capital gains, gift, estate and withholding taxes. The same holds true for stamp duties. It is possible to establish a Nevis business corporation in just a few business days. Expect the process of preparing share certificates and legalization documentation taking another two to three days. 

Start the Nevis business corporation by calling the number above, ordering online, or fill out out the consultation form on this page. The Nevis Business Corporation Ordinance requires filing of Articles of Incorporation with the Nevis Registrar of Corporations. This is not a do-it-yourself process because Nevis law requires a licensed agent. (We are a Nevis licensed agent, so expect to pay less with our organization.) 

The Articles of Incorporation are submitted to the registered agent in Nevis. An agent may also prepare these documents if given specific instructions by the company creators. Most new businesses prefer to have the agent conduct document preparation for the sake of convenience.   

Legal Requirements

The ordinance requires only minimal information for the Articles of Incorporation. This includes:

• Distinct corporate name
• Authorized share capital
• Share type and par value 

Keep in mind that companies with certain terms in the name must receive government approval or licensing prior to incorporation. These terms/words include, but are not necessarily limited to, the following:

• Assurance
• Bank
• Building Society
• Chamber of Commerce
• Chartered
• Cooperative
• Fund Management
• Imperial
• Insurance 
• Investment Fund
• Municipal 
• Loans
• Royal
• University

Most company names will end with a term such as company, limited, corporation, or incorporated. This makes it clear that it is a business, and not an individual or partnership. Naturally, businesses cannot use the names of any current or reserved Nevis corporate entities.  

The registered agent works with an incorporator who files the Articles of Incorporation with the Registrar. The process generally involves subscribing one share to the incorporator. However, this share is not issued. Once the incorporation is complete, a duplicate copy of the Articles of Incorporation is sent back to the registered agent with the registrar’s endorsement. 

Nevis does not have statutory requirements for the accounting and auditing of these international companies. This is important to know because many countries require expensive monthly accounting fees. Nevis does not require this. Which types of records you keep is left to the discretion of the corporate directors. However, you should store these records in a safe place. There is also no requirement for annual meetings. If an annual shareholders meeting is held, the board may decide where to hold it. 

Some people hold meetings in Nevis, though this is not required. It could make for a nice tax deductible business trip to a beautiful tropical island. 

Directors, Officers and Shareholders 

In Nevis, the names of the directors, officers and shareholders are not part of the public record. The only ways these names are revealed is via the consent of any of the parties or via a court order. 

Under Nevis law, directors and officers may include residents of any country. Moreover, legal entities such as trusts or LLCs may serve as directors. While at least three directors are generally required, that is not the case if the company has fewer than three shareholders. Under these circumstances, the three director rule is not applicable. A sole person may create the company as well as serve as the only director and shareholder. 

As per officers, individuals must serve as the president or treasurer. The role of secretary is open to an individual or a corporation. One person can retain all three positions. 

Shareholders may include residents or businesses based in any nation. Only one shareholder is required. The minimum par value per share is just $1. By the way, this is not an expense. It is just a paperwork requirement when your agent files the company. 

Nevis Bank Accounts 

The process of opening a business bank account in Nevis usually takes about two weeks. That is, it often takes that amount of time once all documentation is in order. Please note, we do not guarantee time frames because we do not control the bank. Again, this is not a time frame guarantee. It is only a very rough estimate based on our experience. It could take longer; much longer. We repeat, it could take much longer. So, if the bank takes more time, or if you drag your feet on providing the needed documentation, we have no control of this. So, don’t hold us to it. We are not the bank. Nevis banks accept as currencies US dollars, Euros, and British pounds sterling, or GBP. 

For business and personal bank accounts in Nevis, the minimum initial deposit is $10,000 for some banks. It is more or less for other banks. Many banks also have monthly balance requirements. 

Nevis vs. Belize Companies

Nevis and Belize companies are very popular options. Nevis, however, has drafted laws that far surpass Belize. So, between the two, Nevis wins the edge. 

1. Nevis laws said had to put up a $100,000 bond prior to filing legal documents to enforce a judgment against one’s interest in a Nevis LLC. As of 2019, the Nevis High Court can require a bond for any amount, including well over $100,000.
2. The statute of limitations for fraudulent conveyance is only two years. This does not mean assets are not protected until two years. They are still protected. It just means that after you transfer assets into a Nevis LLC, two years later the courts will decline to hear the case.
3. The burden of proof for a creditor is high. They must provide evidence beyond a reasonable doubt that the member transferred assets to the company in order to delay creditors.
4. Unlike most US states, single member, as well as multi-member LLC enjoy asset protection when someone sues a member. In most US states, one owner LLCs have no such protection. 
5. Charging recorded on a member’s interest in the company disappear after three years and a creditor cannot renew it. 
6. Managers can have 100% control of the company.
7. The manager of the LLC does not need to have any ownership and yet can control the entire company and all of its assets.

Nevis LLC Formation Cost – Cheapest vs. Best 

We have formed companies in Nevis since 1994. We are the largest Nevis LLC formation firm worldwide. What kind of car do you drive? The cheapest? I would think not. You likely drive the car that best suits your needs for a reasonable cost, correct?  You want it to be reliable and to protect your and your family from danger, right? 

It is the same with a company. Keep in mind, the Nevis LLC is a wealth protection tool. You use it to hold your wealth. What kind of company do you want to protect your wealth? The cheapest Nevis LLC? Or the best Nevis LLC that is priced reasonably? 

That is where we stand. We do not want to cut corners and be the cheapest. Instead, we want to be the best for a reasonable cost. We have established thousands of Nevis LLCs. Therefore, we know how to draft the legal documents such as the articles and operating agreement to offer maximum protection. When a lawsuit strikes, we think that is what you want, correct? 

What if you have questions after you form your company? For example, what if getting an answer quickly is the difference between making a big sale or not? What if you could not get your bank account open so you can receive the proceeds from a big sale? 

That is where we come in. We are not the cheapest. Rather, we strive to be the best for a reasonable cost, offering the customer service we would want if we were in the customer’s shoes. 

What is the cost? Prices vary depending on what you order.  Plus, if government fees change, we do not want to date this article. So, we can say that the cost is typically between $1200 and $2000 for a company. It is between $1000 to $2500 additional for an address, phone number and/or bank account depending on the package you choose. Keep in mind, this is as of this writing, which may differ from today’s prices. 

Conclusion

Nevis LLC formation and bank account opening provides the business owner with tremendous benefits. Nevis has the strongest asset protection laws worldwide. Plus, the longstanding case law in Nevis is very favourable to the LLC member and manager. If you want to protect a bank account, setup a Nevis LLC and and offshore account. For even stronger protection, own your Nevis LLC inside of a Nevis asset protection trust. 

Do you need more information? Please call one of our numbers above or complete the free consultation form on this page.