Nevis1b - Redomiciliation Of Bvi Companies To Nevis For Dissolution Purposes: A Cheaper And More Efficient Alternative

Nevis and the British Virgin Islands (BVI) are leading international Caribbean financial centres, and both offer a good reputation and excellent standards.

Potentially Reduced Costs

Recent changes to legislation in the BVI mean that the cost of formally dissolving a BVI company in the BVI has increased considerably.

In an ever competitive world where clients are cost sensitive, Nevis can provide an attractive jurisdiction for the dissolution of a BVI company. A BVI company can be redomiciled to Nevis and then formally dissolved in Nevis.

Procedure for Redomiciling a Company to Nevis

Through its office in Nevis, Dixcart can provide the documents and complete the necessary filings in Nevis to effect a transfer of domiciles. 

A transfer requires: the notarisation and apostillation of a signed Resolution passed by the shareholders, apostilled Memorandum and Articles, and a Certificate of Good Standing from the BVI registry.

The directors are also required to complete and apostille an Application for Transfer. Alternatively this can be delegated to Dixcart Nevis through authorisation in the Shareholders Resolution. All documents are filed in Nevis.

Dissolution of a Company in Nevis

When a former BVI company has been established in Nevis it can be formally dissolved by filing the Articles of Dissolution and the relevant Shareholders Resolution.

As highlighted above, in order to avoid the extra costs associated with apostillation Dixcart can be appointed as attorney or as a nominee shareholder to hold the shares.

Fees Payable to Dixcart

A fee of US$1,100 is payable to Dixcart for the redomiciliation of a BVI company to Nevis and the subsequent dissolution of the company. The fee is inclusive of all Government fees and courier delivery.

A Review of the Similarities between the Jurisdictions of Nevis and BVI

Nevis and BVI are attractive jurisdictions for a number of reasons. They have provided offshore services for a similar number of years and offer several comparable characteristics:

  • Application of common law legal systems (similar to the English legal system)
  • Client confidentiality
  • Companies can be struck off for non payment of fees or formally dissolved
  • Entities are used as holding vehicles for US property/investments as part of asset protection strategies
  • No filing requirements for accounts/directors/shareholders
  • No taxation
  • Redomiciliation is allowed

A Comparison between the Jurisdictions of Nevis and BVI

There are also a number of differences between the two jurisdictions and these are summarised in the table below:

 

Criteria

Nevis

BVI

Incorporation time

Within 24 hours

36-54 hours

 

Government fee to incorporate an IBC* with registered shares

US$ 235 for any number of shares

US$ 350 up to 50,000 shares or US$ 1,100 for greater than 50,000 shares

Government fee to incorporate and renew a Private Trust Company

US$ 235 for any number of shares

US$ 750 up to 50,000 shares or US$ 1,500 for greater than 50,000 shares. These are incorporation and then subsequent renewal fees.

Government fee to renew IBC with registered shares

US$ 220 due on anniversary of incorporation

US$ 350 or US$ 1,100 due on May 31st or Nov 30th

Government fee to incorporate and renew bearer share companies

US$ 235 or US$ 220 due on the anniversary of incorporation

US$ 1,100 incorporation and subsequent annual renewal fee

Status

Independent. Offers political and economic stability

British dependency. Subject to UK and EU legislation which includes the Savings Tax Directive

Size of Registry

20,000 IBCs. This means that specific names are reasonably likely to be available

400,000 IBCs . This means that it is less likely that a specific name will be available

Foundation Legislation

Multiform Foundation Ordinance passed November 2004

No Foundation legislation

LLC* Ordinance

Nevis LLCs are available at the same price as IBCs and are "tick box" entities for US tax purposes

No LLC legislation exists

Dissolution of Companies

Covered under the existing Ordinance. The Dixcart fee is US$ 550

New legislation enacted with fees quoted from US$ 1,600 upwards

 

*IBC: International Business Corporation

*LLC: Limited Liability Corporation

Additional Information

If you require additional information regarding this topic and/or the jurisdiction of Nevis, please speak to your usual Dixcart contact, or to John Terry at the Dixcart office in Nevis: advice.nevis@dixcart.com.

Categories: Jurisdiction, Nevis, Year, 2013