Nevis

This 36 square mile island is located in the chain of Leeward Islands, some 1,200 miles southeast of Miami and 225 miles southeast of Puerto Rico. In 1983 St Kitts & Nevis gained independence from Great Britain but remained independent members of the British Commonwealth 

Similar to the BVI, Tourism and the Financial Services sector are the primary economic influences on the island with good accessibility to the island from the American Airlines hub at San Juan, Puerto Rico and international jet access to St Kitts. Nevis also boasts the Four Seasons Resort and Golf Course amongst an impressive array of tourist accommodation.

Nevis has long been home to a significant number of International Business Companies with legislation dating back to the Nevis Business Corporation Ordinance in 1984 with subsequent legislation covering Trusts, Mutual Funds and Insurance.

It has had a longstanding reputation as the domicile of choice for Reinsurance Companies but the enactment of the NIIO, 2004 has widened the attractiveness of the territory to all forms of insurance entities. These include the most simplistic single owner captive insurance company to re-insurers. Insurance brokerages can be duly domiciled in Nevis. In 2010 Nevis was one of the fastest growing captive domiciles in world with some 56 new entities licensed during the course of the year.

Captive Insurance Legislation

The enactment of the NIIO 2004 has provided modern insurance legislation that facilitates the operation of an insurance entity from the domicile and brings the captive concept within financial reach for the smaller to medium business corporations.

The flexible, pragmatic and professional service provided by Nevis FSD makes the application process relatively painless in today’s world of corporate governance and due diligence.  Other practical benefits include:-

• Competitive professional and regulatory fees
• Local Attorneys are not required on a statutory basis
• Local Bank Account is not required on a statutory basis
• Local Directors are not required on a statutory basis
• Competitive minimum capitalization requirements for the different insurance entities
• Tax Neutral Jurisdiction
• User friendly application forms and licensing process
• 3-4 week timeframe for license approval and incorporation
• Judicial System based on English Common Law with the final court of Appeal the Privy Council in London.

Regulatory Fees

Insurance License Application Fee – Due to Nevis FSD

• US$    250 – International Insurance Brokerages
• US$    380 - Reinsurance & Captive Insurance Companies
• US$ 2,000 – General & Life Insurance Companies

Calendar Year Insurance License Fees – Due to Nevis FSD

• US$ 1,000 – International Insurance Brokerages
• US$ 1,500 – Reinsurance & Captive Insurance Companies
• US$ 2,000 - General & Life Insurance Companies

* All License Fees reduce to US$ 1,000 per annum at 1st renewal

Capitalization

The Minimum Statutory Capitalization must be retained in cash or cash equivalent at all times:-

• US$ 185,000 - Long Term & General Insurance Business
• US$   75,000 – Reinsurance Companies
• US$   50,000 – More than 2 Owners Captive
• US$   20,000 – 2 Owner Captive
• US$   10,000 – Single Owner Captive

Solvency Margins                                             

Net retained premium does not exceed US$ 5,000,000 – 20%                                                          
Net retained premium in excess of US$ 5,000,000 - US$ 1M + 10% of excess

Admissible Assets

Cash, Debt Securities (Government and Corporate Investment Grade), Precious Metals, Irrevocable Letters of Credit, Equities, Mutual Funds, Commercial Loans, Premiums Receivable and Reinsurance Receivables and any such other investments as may be approved in advance by the Registrar of Insurance.

Taxation

No income tax, direct or indirect tax shall be levied in Nevis upon transactions, contracts, securities or other dealings, profits or gains of a registered insurer. No tax is levied on dividends or earnings attributable to shares or securities of the registered insurer. There is also an exemption from stamp duty and from all currency and exchange control restrictions.

Auditors

The Auditor does not have to be a Nevis company but must be pre-approved by Nevis FSD and audited accounts need to be submitted within 6 months of the end of the financial year.