ST KITTS & NEVIS: An Introduction to General Business Law

General Business: St Kitts and Nevis 

Despite being the smallest country in the Americas in terms of both area and population, St Christopher and Nevis (better known as St Kitts and Nevis) continues to have all the hallmarks of an attractive country for doing business, given its democratically elected government, a vibrant International Financial Centre in Nevis, and an effective regulatory framework compliant with international standards.

The International Monetary Fund Country Report on St Kitts and Nevis confirms the jurisdiction’s trajectory for economic growth, as the historic, prudent fiscal policies of the jurisdiction have helped it navigate the global increase in prices of energy and food.

Business development in St Kitts and Nevis has been consistent. The tourism industry continues to be a primary economic generator with the islands having high-end resorts such as the Marriot Resort & Royal Beach Casino, the Park Hyatt in St Kitts, and the Four Seasons Resort Nevis, with several charming boutique hotels throughout both islands geared towards family and couples’ vacations.

Both islands are focused on renewable energy development. Specific to the island of Nevis is the undertaking of tendering for exploration and development of geothermal energy, funded by the Caribbean Development Bank. In St Kitts, there is the construction of the Caribbean’s largest solar plus storage project – a 35.6 MW solar energy plant and 44.2 MWh battery storage facility. This movement towards renewable energy development is in keeping with the jurisdiction’s commitment to fighting climate change and promoting sustainable development.

The investment migration industry in St Kitts and Nevis has undergone several changes with the revamping of the Citizenship by Investment (CBI) Programme, and with the introduction of the Sustainable Island State Contribution, in furtherance of the islands’ sustainable development goals resting on seven pillars:

• increasing local food production;

• transitioning towards green energy;

• diversifying the economy;

• attracting and supporting sustainable industries;

• evolving the creative economy;

• recovering from the impacts of the COVID-19 pandemic; and

• expanding social protection and safety nets to protect the most vulnerable.

The CBI Programme has a robust due diligence process that has now been bolstered with the introduction of a mandatory interview feature as part of the due diligence process, ensuring that individuals seeking to obtain a second citizenship are doing so from a reputable jurisdiction (which is also the jurisdiction that pioneered the concept of “citizenship by investment”).

The real estate sector has several incentives for investors, whether businesses and/or families, with competitive concessions for development, including exemptions from corporate income tax for fixed periods and relocation allowances. The Real Estate Option in the CBI Programme has introduced modern architecture, which mixes with the quaint spirit of the islands, complemented by stunning views in a natural cascading landscape.

The International Financial Centre in Nevis maintains its corporate offerings, with the most popular being the formation of Nevis Business Corporations (IBCs), Nevis Limited Liability Companies (LLCs), and Nevis International Exempt Trusts (Nevis Trusts). The regulatory environment in the Nevis International Financial Centre upholds international standards aimed at counteracting money laundering, counter-terrorism financing and the proliferation of weapons of mass destruction, as evidenced in the Caribbean FATF St Kitts and Nevis Fourth Round Mutual Evaluation Report.

Key Legislation 

From a legislative perspective, there is an aggressive legislative agenda. Firstly, legislation has been passed in furtherance of good governance, transparency and public accountability, with the introduction into law of:

• the Integrity in Public Life (Amendment) Act 2023;

• the Anti-Corruption Act, 2023; and

• the Freedom of Information (Amendment) Act, 2023. 

Secondly, in business, the Caribbean Community and Africa Export-Import Bank (Agreement for the Establishment of a Partnership) Act, 2023 was passed, aimed at the development of greater business, commerce and trade with the continent of Africa. This is considered landmark legislation for fostering a closer connection between the Caribbean and Africa.

Also, the Nevis Island Administration (Civil Proceedings) Act, 2023 and the Crown Proceedings (Amendment) Act, 2023 were passed in response to the Eastern Caribbean Supreme Court of Appeal decision rendered by the Chief Justice in The Nevis Island Administration and Ocean Reef Resorts Limited NEVHCVAP2018/0006, which stated that the island of Nevis had no legal standing to sue and/or be sued given the applicability of the Crown Proceedings Act to Nevis (a decision that created the situation where the island of Nevis had to revert to the Federal Government to deal with many of its legal issues). Both pieces of legislation expressly fill the gap identified by the Chief Justice, such that the island of Nevis may sue and be sued.

Summary 

As a jurisdiction, St Kitts and Nevis is making great strides, and is certainly open to doing good and legitimate business.