A Private
Exempt Company is a company that pays no income, capital gains, withholding, or
stamp taxes as long as it conducts business exclusively with persons who are
not residents in the Federation of St. Kitts and Nevis.
The
Companies Act makes clear that an exempt company does not lose its tax exempt
status because of certain activities within the Federation, including signing
contracts or concluding arrangements for employing residents, purchasing goods
and services, and exercising other powers to carry on its business such as
holding directors' and members' meetings, transacting banking and reinsurance
business, and conducting securities transactions or serving as adviser to
Federation residents who enjoy exempt status.
Advantages
of a St. Kitts Exempt Company
- No estate,
inheritance, succession or gift tax, rate, duty, levy or other charge is
payable by any person with regard to any property owned by, or securities
issued or created by or in respect of, an exempt company.
- No annual financial
returns or other reports by shareholders or directors are required to be
filed in the public records of St. Kitts.
- No minimum
capitalization requirements before commencing business.
- Shareholders,
directors and officers can be of any nationality and reside anywhere.
- Beneficial ownership
information is confidential.
- Shares may be in
registered or bearer form. Bearer shares must be held in the custody of an
authorized person under the Financial Services Regulations order
SR&O No. 25 of 1997.
- Shares with par value
may be denominated in any currency.
- A Managing Director
may be appointed to direct the day-to-day activities of the company.
- The Secretary of the
company can be a corporation or an individual.
- Shareholders and
directors may act by unanimous consent, without a meeting.
- Shareholders and
directors can attend meetings through the use of proxies.
- A corporation formed
in another jurisdiction may re-domicile to St. Kitts.
Requirements
- All companies must
have a registered office in the Federation to which communications and
notices may be addressed.
- A private company must
have at least one director that may be an individual or a body corporate.
- Every company must
have a secretary and may have one or more assistant secretaries who, or
each of whom, may be an individual or a body corporate.
- An annual fee of
US$200 is payable to the government on filing of the annual return.