Nevis is a popular jurisdiction for offshore business formation because of its privacy laws, particularly those regarding formation of a limited liability company.
Nevis is an island in the Caribbean Sea located in the northern section of the Leeward Islands. It is a democratic society similar to the British Parliamentary system and its legal system is a Common Law, which is based on American Corporate Law and English Common Law.
Once financially dependent upon a sugar crop, Nevis has grown financially independent because of its asset protection laws. In 1984, The Nevis Business Corporation Ordinance was enacted to grow the financial sector of the island. In 1995, the Nevis Limited Liability Company Ordinance was passed, causing the jurisdiction to become one of the strongest International Business Company safe-haven, particularly businesses using the vehicle of Limited Liability Company.
Nevis based its LLC law on the Delaware limited liability statute, only with additional privacy features.
While privacy is important in many jurisdictions, the 1995 Nevis LLC law created an even stricter barrier between a company and its owner. If an owner is involved in litigation, the Nevis LLC law protects the company assets from being seized.
While corporations have stockholders, LLC’s have members. Law in the jurisdiction of Nevis prevents assets in a company from being taken away from an LLC member. The finances are legally protected, making Nevis a safe-haven for assets.
A second layer of protection comes in the form of privacy. Nevis IBC law forbids revealing the owner of a Limited Liability Company, guarding assets from judgment creditors.
Owners who want to protect their finances when involved in a personal lawsuit often turn to a Nevis LLC, not only for the protection, but also for the ability to receive tax-free revenue.
Some additional reasons why people choose the jurisdiction of Nevis over other jurisdictions for offshore business formation is because of its political stability, the anonymity provided by Nevis law, the government’s stance of maintaining the jurisdiction’s status as a safe haven for assets, and the accessibility to offshore business within the jurisdiction.
One of the few reasons why investors pass on Nevis as their jurisdiction of choice is the limited vehicles for investment. Nevis only offers corporations and limited liability companies, albeit those are the two most popular vehicles for offshore business.