The island of Nevis enacted a favourable limited liability company (LLC) Ordinance in 1995 that came into effect on the 1st of May 1995. The Ordinance indicates that an LLC "may be organized for any lawful business purpose or purposes, including without limitation, the rendering of professional services by or through its members, managers, officers, subject to any licensing or registration requirements applicable in any jurisdiction in which the services are rendered or which such persons are licensed or registered." To establish an LLC in Nevis, it must contain the following:
Formation by one or more persons without regard to their residence, domicile or jurisdiction.
Registered agent established in St. Christopher and Nevis.
Company name shall contain the words "limited liability company" or the abbreviation "LLC", "L.L.C.", or "L.C.".
Articles of Organization must be established with the name (1) of the company; (2) a statement that the LLC is formed under the Ordinance; (3) the latest date on which the company is to dissolve, if any; (4) name and address of the agent in Nevis; (5) whether the LLC is managed by managers exclusive of the members or by all of the members in their capacity as members.
Advantages of an LLC in Nevis
According to the Ordinance PART IV 19. An LLC is solely liable for its debts, obligations and liabilities. An LLC can be a proper plaintiff in a suit against the LLC company and the name of a member, manager or employee of an LLC. Further, Nevis LLCs are a vehicle of transparent and flow-through entities whereby the income generated by the entity is taxed directly to the members and not to the company. An LLC in Nevis will be exempted from tax on income, profits, dividends, interest and capital gains.
Personal Data Confidentiality
Nevis prohibits the access of company managers, directors, and owners on any public record. The resident agent is the only one who can access the information, and can only be requested if the entity is involved in an illicit matter.
Enforcement of Laws in Nevis
In Nevis, courts do not recognize judgments from foreign courts. If a judgment is declared in a foreign jurisdiction, the jurisdiction will not recognize it, and a new legal process must be initiated. Further, class-action suits are not recognized in Nevis, and only individual legal processes can be created. The Court requires insurance of $100,000 to be paid before any documents are submitted.
Statute of Limitation
Nevis for an LLC allows that a lawsuit, despite a transfer of a specific asset, shall be filed within two years of the transfer. When a deadline is missed, the Nevis court will reject a claim, and the Nevis LLC will proceed with its operations without disruptions. In addition, if a plaintiff persuades the Court that the evidence supports their case and succeeds, the following can occur:
The court's decision and the plaintiff's claim on the defendant's company ownership are valid for only three (3) years with no extension.
A court ruling applies only to the individual owner of the company who is involved in the case. In the case of multiple LLC owners, the shares of the other participants remain unaffected.
A plaintiff may not claim ownership of the actual assets within the entity. Nevertheless, they are only allowed to seek the dividends the defendant received.
The LLC is a recent phenomenon as an alternative to the typical known business company in the jurisdiction. The recent amendments have made it attractive for foreigners to use this vehicle to organize their assets and protect their patrimony.
If you wish to receive more information on Nevi's LLCs, please get in touch with us at Contact@viss.com.hk, and we will gladly assist you.
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