ST KITTS

4. Other Forms And Entities

A. Commonly Used Legal Entities

International business companies may be incorporated in the Federation under the Companies Act, 1996, as amended. Foundations may be established under the Foundations Act, 2003 and Limited Partnerships may be formed under the Limited Partnerships Act, 1996.

B. Foundations

The Foundations Act, 2003 introduced the concept of private foundations to the Federation. The Act abolishes several requirements regarding private foundations that are normally found in other jurisdictions.

The founder or any person acting on behalf of the founder may, by delivering to the registrar of foundations the articles of the foundation and on payment of the prescribed registration fee, apply for the registration of the foundation. Upon the registration of the foundation, it will be a separate and independent legal entity in its own right.

A Federation foundation is not subject for assessment to any tax and the beneficiaries of a foundation are similarly exempt from all taxes that may arise out of their interest in the foundation if the foundation effects transactions exclusively with persons who are not resident in Saint Kitts or Nevis.

C. Limited Partnerships

Saint Kitts Limited Partnerships are interesting planning vehicles, particularly due to the flexibility that Federation law provides. Any two or more persons can form a limited partnership, which must consist of one or more persons who are general partners and one or more persons who are limited partners. A body corporate may be a general or a limited partner and a person may be a general partner as well as a limited partner at the same time. A limited partnership is not itself a subject for assessment to any tax in the Federation and the partners of a limited partnership are exempt from all taxes that may arise out of their interest in the limited partnership if the partners of the limited partnership are, in respect of it, effecting transactions exclusively with persons who are not resident in Saint Kitts or Nevis.

D. Taxation

I. General Information

There are no general income taxes, capital gains, withholding, net worth, gift, inheritance or estate taxes in the Federation.

Ii. Tax Information Exchange Agreements

The Federation of Saint Kitts-Nevis has entered into tax information exchange agreements with Aruba, Belgium, Denmark, the Faroe Islands, Finland, Iceland, Liechtenstein, Monaco, the Netherlands, the Netherlands Antilles, New Zealand, Norway and Sweden.


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© 2012 Society of Trust & Estate Practitioners