Form a Nevis Company for Privacy and Iron-Clad Asset Protection
Using a Nevis Company provides a number of strategies to immunise yourself from the threat of lawsuits.
Nevis is the smaller of the two islands that comprise St Kitts and Nevis. It has a population of only 12,000. Nevis has its own parliament, which has considerable autonomy from the main St Kitts parliament. Nevis has its own Prime Minister and its own government. The offshore industry makes up a substantial part of the budget for the Nevis government. That’s why they have particularly innovative rules for company formation. Forming a Nevis Company is a substantially better option for privacy and asset protection than anywhere else in the Caribbean.
Asset Protection Basics
If you don’t live in the same country where your business is located and it’s not easy to either serve proceedings on you or build up a picture of your assets then the risk is substantially reduced.
In any case you should hold no assets in your own name.
Any assets that you do hold personally should have secured loans against them. Assuming you’ve done all this which entity should own your businesses homes, cars and other assets?
If you want to have rock solid asset protection and privacy a Nevis company is one of the best options. A Nevis company offers some of the strongest asset protection and privacy in the Offshore world.
Here are 9 reasons why you might want to park your assets in a Nevis LLC:
1. Nevis does not recognise judgements from other countries
Many countries have treaties where you can take a judgement in the court of one country and have it stamped in the court of another country.
If a creditor obtains a judgement against you in London, for example, he can easily take it to the BVI and have it enforced there. Nevis doesn’t recognise such judgements.
There is no searchable register of members of Nevis companies. Your adversaries will not know that you’re a shareholder of any Company in Nevis to start with.
The best way to protect your assets is if nobody knows that you own them in the first place.
3. A bond of $100,000 is required to file a lawsuit
Assuming your adversary knows that you have an interest in a Nevis Company and decides to sue he will have to post a bond of $100,000 to the court in Nevis.
This is a very strong deterrent as your creditor might think it’s not worth his while to sue when the outcome is unknown.
4. Assets only need to have been in the company for 1 year for full protection
In any jurisdictions the Company needs to have been in existence and have held the disputed assets for 2 or 3 years to offer full protection against fraudulent transfers. In Nevis the period is only 1 year.
5. Additional burden of proof for fraudulent transfers
Fraudulent transfer allegations usually come about when assets are transferred before or during a lawsuit, divorce or bankruptcy. The courts in Nevis have a very high burden of proof for allegations like this.
6. Protection from transferring assets under duress
If you have a judgement against you in your home country and the judge orders you to liquidate the assets of the Nevis Company.
In such a case the directors of the Nevis Company can refuse to act on your instructions because you’re being forced to act under duress.
7. Low filing requirements and running costs
There are minimal annual filings for the Company. Normally just an annual declaration that the Company still exists and the shareholders which are not public.
8. Charging order protection – It’s Impossible to Freeze the Assets of a Nevis Company
No creditor can freeze the assets of the Company in Nevis.
If there is a court order against a member of the Company only future distributions in favour of that member could be seized.
Clearly in this scenario you could ensure that there would be no future distributions to that member.
9. Individual Members can’t be sued
Individual members of the Company can’t be sued in a Nevis court. Only the LLC can be sued if the conditions are met.
I think you can see that using a Nevis Company affords bullet proof asset protection in a tax free vehicle. Definitely something worth considering depending on your own Offshore strategy.
For these reasons and more Nevis is the best option for incorporation in the Caribbean. Frankly the protection offered by a Nevis Company nocks the other options in the Caribbean out of the park.
If you’d like to find out more about the latest asset protection options around the world and how to protect your assets from any eventuality see our Bullet Proof Asset Protection Report. You’ll discover the latest innovative strategies for Offshore Companies, Offshore Bank accounts. How to keep your overseas bank accounts and assets secret by avoiding the Common Reporting Standard (CRS) and much more.