St. Kitts and Nevis International Banking License

Offshore banking falls under the Financial Services (Regulations) Order 1997. Nevis has its own Offshore Banking Ordinance 1996.

Key Features

Licences under the Banking Ordinance are issued to eligible companies or qualified foreign banks. An eligible company must be a wholly owned subsidiary of a local bank regulated by the Eastern Caribbean Central Bank that is licensed under the Banking Act to do business in Nevis. A qualified foreign bank is a foreign bank that is licensed under the Banking Act, or is foreign bank with minimum capitalization and assets, as prescribed by the Minister, that is not licensed under the Banking Act but is licensed to do domestic banking in its jurisdiction of incorporation.

An eligible company must be incorporated under the Companies Act as a company limited by shares, and must have objects or business activity restricted to offshore banking from within Nevis. It must have at least one director who is a citizen of St. Kitts and Nevis with a residence in Nevis. The minimum Authorised Capital must be at least USD 2 Million which must be deposited in an account maintained by the Permanent Secretary at the Eastern Caribbean Central Bank.

Legal Requirements

Requirements	Description
General
Corporate  vehicle permitted	St. Nevis International Company
·         License application fee	USD 1,000
·         Annual license fee	USD  8,000 (Unrestricted License) USD  4,000 (Restricted License)
Local physical office required	Yes
Share capital or equivalent
·         Minimum paid up capital	USD  2,000,000
Directors
Minimum number	2
Corporate directorship allowed	No
Local director required	Yes
Shareholders
Minimum number	2
Corporate shareholder allowed	Yes
Local shareholder required	No
Service Providers Required
Company secretary	Yes
Auditor	Yes
Legal adviser	Yes

Tax Treatment

Nevis offshore banks pay tax as follows:

• 2½% on all profits and gains up to ten million dollars;
• 2% on all profits and gains in amounts exceeding ten million dollars but not exceeding twenty million dollars;
• 1½% on all profits and gains in amounts exceeding twenty million dollars but not exceeding thirty million dollars; and
• 1% on all profits and gains in amounts exceeding thirty million dollars.

Duration to Set Up

Around 3 to 6 months

Distinctive Benefits of Licence

• Numerous tax advantages
• Ease and speed of licensing

The Valsen Advantage

• End to end comprehensive service
• Speedy and efficient service
• Expert advice on structuring options
• Dedicated ongoing compliance support
• Extensive network pool of service providers