How to turn a Nevis offshore firm into a reputable company
If anyone would like to register a company in a classical offshore jurisdiction, he or she would probably choose Nevis. The country offers everything that a true offshore zone must have:
- A fast company registration;
- Untaxable worldwide income;
- A high level of privacy and asset protection.
In addition to this, several factors inherent to Nevis alone are beneficial for the international entrepreneur. These are such factors as warm relationships with the Caribbean neighbors, respect on the part of the United States, maximum protection from creditors, angry relatives, and frauds, and maximum confidentiality of the information about the Nevis-registered company.
Nevis is NOT on the EU blacklist and it keeps on functioning quite successfully. The popularity of this jurisdiction remains as high as it has always been. The Government of the country has taken some measures to keep Nevis attractive for foreign investors while conforming to the toughened international requirements.
Besides, Nevis has made a large number of double taxation avoidance agreements so your company registered in this jurisdiction is protected from some unexpected extraordinary occurrences.
One of the most attractive characteristics that Nevis possesses is the ability to protect the businessperson’s assets in the most effective way. This goal is achieved via several means.
First, the court decisions made in other countries are invalid in Nevis until a local court of law finds the evidence conclusive. Imagine that a judge in your home country has sentenced your Nevis-based company to a fine, for example. Before you will be obliged to pay the fine, a judge in Nevis will have to be convinced that the accusations against you are well grounded and the fine must be paid indeed.
Second, creditors are often reluctant to file suits against Nevis-registered companies. On the one hand, the legal charges are very high, around US$ 100,000. On the other one, even if the plaintiff wins the case, he or she will be entitled to receive only the payments that are due to the company such as dividends or capital gains, for example.
Your property including your fixed assets based in Nevis cannot be possibly taken away from you. There have been attempts to do so but they have all been unsuccessful, as far as we know. Besides, a collective suit cannot be filed against a Nevis-based company either. Every creditor or plaintiff has to sue the company individually.
This sort of protection does not contradict the EU requirements nor does it cause any suspicions in the financial controllers. However, even Nevis has some weak points that are found in other business aspects.
The ‘problematic’ Nevis
All offshore jurisdictions are currently going through hard times. The international de-offshorization policy is making the classical offshores alter their legislations and it happens not in the interest of foreign investors. However, if they refuse to change their legislations, they are put on the blacklist, which brings them serious troubles.
But offshores adapt to the new requirements. As the saying goes, ‘If you cannot ride two horses at once, you shouldn’t be in the circus’. However, foreign companies registered in the offshore jurisdictions suffer from these adaptations. They have to sacrifice part of the privacy that they used to enjoy before. Now Nevis has joined the group of countries that exchange their residents’ fiscal information automatically.
In addition to that, today companies have to have some economic substance in Nevis. It does not come at too high a price, of course, but an additional expenditure is required anyway.
The cost of company registration has also grown, which is one more spending pattern. This has occurred due to the EU fight for fiscal transparency.
The main disadvantage that Nevis has, however, is its international reputation. It stands firmly on the ground in the Caribbean region but as far as the rest of the world is concerned, things do not look so bright for Nevis. A Nevis-registered company has to face some limitations in Europe and America, which blocks many perspective routes of development for it.
The sorest point for offshores is the difficulties with opening corporate bank accounts. Some banks still agree to set up accounts for offshore-based companies and we know which ones do. If you would like to open a bank account for your offshore company, please write to us to email@example.com and we will make some suggestions.
If you do not believe that opening an account for your offshore company with a reputable bank is possible today, please do not haste to shut the company down. There is a way out of this difficult situation: you can transfer your company and thus your tax residency from Nevis to Andorra.
Andorra and its advantages
Why Andorra? First of all, no other European country has a lower corporate tax than Andorra does. Second, this tiny European state enjoys very good international reputation. If you re-domicile to Andorra from Nevis, your company will become much more respectable. You can keep the company but make it a tax resident of a preferable jurisdiction.
Relocating the company to Andorra is not so simple, though. In order to acquire a tax identification number in the country you have to have a legal resident of Andorra as the company director or shareholder. There are two ways to meet this requirement:
- You can acquire a residence permit in Andorra;
- You can appoint a representative of ours your company director or co-director. Our representative is a legal resident of Andorra.
It is hard to say which option is better. Each of them has its own pluses and minuses.
There is no need to worry if you are not a resident of Andorra. With our assistance, you can acquire both legal and tax residency in the country.
The legal resident status will actually bring you a number of valuable benefits. You will have an opportunity to bring your family to a well-developed European country with high living standards, great medical care, and international schools that do not overcharge the students. You will also never need a visa to visit any European state.
On the other hand, the second plan of action can be implemented much faster. The corporate income tax in Andorra is only 10% but if your country of residence has a higher tax, you will have to cover the difference as you will not be a tax resident of Andorra.
Both variants require hard preparatory work and some investments as well. When the legal residence condition is satisfied in this or that way, you can start the process of acquiring the corporate tax identification number for your Andorran company. The process involves several steps:
- You will have to supply the Certificate of Company Registration, the Certificate of Incumbency, the Certificate of Good Standing, and other corporate documents to us;
- We will have the documents translated and submit them to the Andorran tax authorities that will issue the company Registration Certificate;
- We will also help you with the accounting as keeping financial records is mandatory in Andorra;
- The foreign company registration with the tax authorities and the assignment of the tax number will cost you 3,750 EUR. The cost of document translation is not included in this price;
- After the company is registered in Andorra, you will have to make a prepayment for the accounting services. Preparation and submission of the balance sheet costs 2,000 EUR per fiscal year.
Nothing else is required. Tax residency can be changed comparatively fast and without too much hassle for you. After some time, your investments will pay back due to the lower tax burden and better reputation of the new jurisdiction. You company can start working successfully again and bringing more cash to you.
Please apply for our free consultation on the matter by writing to firstname.lastname@example.org. We will be happy to be of assistance to you.