Which Offshore Company Is The Best?

Intro

Nevis Business Corporations and Nevis Limited Liability Companies (LLC), though governed by distinct enactments share many of the same characteristics and provisions. As companies used mainly for international business activities, both the Nevis IBC and Nevis LLC are offshore companies based on common features that they both share. In spite of the two corporate forms having more similarities than differences, there are noteworthy differences explained later on that are important to the type of benefits that can be achieved from setting up either of these companies.

Main Similarities:

Non-residency

Both Nevis companies and LLCs are prohibited from providing their services to residents of St. Kitts, meaning that the customers of both offshore entities must be overseas residents. Non-residency is critical to a Nevis LLC and international business company in order to qualify as non taxable or exempt companies. However, the laws of these offshore entities allow for doing business in Nevis under specific circumstances. For example, a Nevis company or LLC is not taxed or considered to be doing business in Nevis if a professional relationship is developed with local lawyers and accountants, if an offshore bank account is opened in Nevis or St. Kitts, or an office is setup in Nevis for preparing accounts, keeping records and managing the company.

Registered Agent and Registered Office

Nevis LLC and companies must be incorporated and registered by the Registrar of Companies through the assistance of a registered agent. Registered agents are people or companies who live in Nevis and provide offshore incorporation services to non residents and overseas corporations wishing to form a Nevis offshore business entity. These offshore business entities must also have a registered office in Nevis, the address of which is used as the primary address in Nevis for the company. International mail and other matters such as court injunctions are received. Normally, a registered may also provide the service of registered office and setup a mail forwarding facility is setup for mailing letter and other correspondences that are received at the registered office.

Legal Personality and Limited Liability

Nevis companies and LLCs are limited liability entities and as such restrict the liabilities of their members. They are also legal persons with powers that are separate from those of their members. Bank accounts can be opened, while contracts, business deals and arrangements can thus be entered into in the name of a Nevis LLC or Nevis IBC.

Names and Name Endings

Whatever the name of an LLC or IBC, it must first be approved by the Registrar. If accepted, a name can be used. The provisions prohibiting the use of a name apply whenever a name is identical or closely resembles the name or another Nevis LLC or IBC or confuses its customers by not clearly or openly indicating the service that the company offers. With this said, the name of a Nevis Business Corporation or IBC must end with a word or abbreviation which means limited liability, for instance, LTD., Ltd., Limited, Inc., Incorporated; whereas the ending of a Nevis LLC’s name must end with L.C., LLC, L.L.C. or Limited Liability Company.

Uses

Nevis companies and LLCs can be used for undertaking practically the same business ventures. LLCs and IBCs can be a trading, copyright, shipping or marketing company depending on the business activity pursued by the beneficial owner(s). However, operating as an offshore bank, exempt insurance or international trust will require special licensing and the necessary procedures will have to be followed for creating these entities.

Advantages

The advantages of both the Nevis IBC and LLC are related to the ability of both offshore vehicles to operate as international business companies for conducting trade. Both offshore companies are flexibly structures in a way that permits officers to comfortably amend the statutes, directorship, issuance and transfer of shares and liquidation.

Main differences:

Legal Structure

Legally, a Nevis LLC varies from a Nevis IBC in the sense that an LLC is owned by its members. Management and other responsibilities are delegated accordingly and there is no board of directors per se, which means that decision making can be quicker and quicker since they are taken by consensus amongst the members. A Nevis IBC on the other hand has directors who run the company and call meetings.

Formation Documents

A Nevis IBC is formally registered and incorporation upon the issuance of a Certificate of Incorporation, whereas LLCs are made legally existent by issuing the Articles of Organization.

Capital and Shares

The members of a Nevis LLC do not issue shares; rather contributions are made and raised to be allocated towards the company’s capital. On the other hand, the members of an IBC issue shares, an authorized capital is set and the necessary provisions are prescribed for the classes, types, transfer, sale and purchase of shares.

 

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