Nevis Local Companies For Business In Nevis Unlike Nevis Offshore Companies
Nevis local companies have the powers, corporate capacity and rights of an individual. The Companies Act, 1996 (22) governing local companies in both St. Kitts and Nevis allows for local companies to be organised by an indefinite number of people who wish to pursue any lawful business interest. For any local Nevis company to be registered at least one member must be named.
Local companies in Nevis are either private or public companies. A private or public local Nevis company can be an exempt company if it is exempt from local taxes or, an ordinary company if it pays taxes locally. An external company in Nevis refers to a company that was incorporated outside Nevis and functions as a private or public company depending on the status given by its memorandum and whether or not it has fewer or more than 51 members, which is the one main distinguishing factor between private and public Nevis companies in Nevis.
Private and public Nevis companies must have at least one and three directors respectively. At least two of the directors of a public company must not employees of the company.
A local Nevis company can be incorporated as the subsidiary of another company of which it is a member, if it controls who sits on the board of directors, or, is a subsidiary of a company which is the parent company’s subsidiary. A local Nevis company may be the subsidiary of another if it has over half in stated value of its equity share capital. A Nevis company can also be the holding company of another if the other is its subsidiary.
All local Nevis companies must have a memorandum which has to be submitted to the Registrar and presented in the English language. The memorandum of a local Nevis company must state the company’s name as well as its duration if the company is intended to operate for a limited period of time, the addresses and names of the subscribers, and the address of the registered office. If the local Nevis company is one that is limited by shares the authorized share capital must be stated, whereas if the company is limited by guarantee the number of members the company is (going to be) registered with and the amount of the guarantee that each member has. The shares or guarantee of members can be expressed in any currency. The subscriber to a company limited by shares must take at least and no less than one share.
Once the memorandum of a local company in Nevis is registered, a registration number will be allocated to the certificate of incorporation upon which the company’s name, date of incorporation and status (private or public local company) are written. The Registrar’s seal is affixed to the certificate of incorporation as evidence of incorporation. A local Nevis company must adapt a seal with its name legibly engraved.
The shares owned by members of a local company in Nevis can be in the form of cash or personal estate. Shares can only be transferred as permitted in the articles and be identifiable by a number. If the shares of a particular class are fully paid up, documented on a share certificate and confer the same rights of each of the holders, these shares do not necessarily have to be numbered. The share capital of a local company in Nevis can be increased by making the necessary changes to the memorandum and consolidating and dividing its issued or unissued shares into larger amounts or creating new shares. For an increase in share capital, another alternative is to convert shares that are fully paid into stock or to reconvert stock into shares that are fully paid; reconverted shares can be issued in any denomination.
When incorporating a local company in Nevis a register of members is required to be prepared and note each member’s class, date of becoming or ceasing to be a members and number of shares. If share certificates are issued, the register of members must provide the necessary share information.
Local Nevis companies must hold general meetings on an annual basis and keep correct accounting records which provide substantial information on transactions. Any Nevis company that provides its services only to people and firms abroad are not subject to withholding, capital gains and income tax.