Insurance

Definitions

The Nevis International Insurance Ordinance 2004 as amended allow for entities to be licensed insurance companies under the defined Act.

The following are the types of Insurance Entities:

  • Allied Reinsurance – means a company carrying on insurance business where the registered reinsurer is allied to a primary insurer who typically initiates insurance contracts as part of its normal course of business, and the allied reinsurer will only assumes risks and accepts premiums from this primary insurer;
  • Allied Annuity – means a company carrying on insurance business where the registered insurer’s business entails only the issuance of annuity contracts, and/or single premium life contracts, and where premiums are acceptable only from its parent(s), or other person(s) of substantial relationship, whether personal or business, and the number of annuitants does not exceed ten (10) persons;
  • Captive Insurance Business – means insurance business where the insured is a parent or affiliated company of the registered insurer or is a person in respect of whom the registered insurer is authorized by the Registrar to provide insurance;
  • General Business – means insurance business that is not long-term business, reinsurance business or captive business and without limiting the generality of this term includes marine insurance, engineering insurance, aviation insurance, transportation insurance, motor insurance, property liability insurance, pecuniary loss insurance, credit and guarantor insurance and miscellaneous personal insurance;
  • Insurance Adjuster – means a person, not being an employee of a registered insured, but employable by insurer or insured, who investigates, qualify and/or quantify a loss experienced in relation to a covered risk;
  • Insurance Broker– means a person, not being an employee of a registered insured, who arranges contracts of insurance between insurer and insured, or gives advice facilitating the sale of insurance contracts, or is authorized by one or more insurer to enter that insurer into contracts of insurance, collect premiums, and otherwise act as the insurer in dealing with the insured.
      1. provides management services for one or more insurers; or
      2. holds himself out as a manager in relation to one or more insurers, but does not include the keeping of insurance business accounts for a registered insurer

    No Person shall act as an insurance manager for, or in relation to, a registered insurer, unless that person is registered in a register to be kept by the Registrar in accordance with regulations and has paid to the Registrar the prescribed fee and every prescribed registration fee and every prescribed annual renewal fee.

  • Long Term Insurance Business– means insurance business of any of the following kinds, namely,–
    • affecting and carrying out contracts of insurance on human life or contracts to pay annuities on human life;
    • effecting and carrying out contracts of insurance against risks of the persons insured sustaining injury as the result of an accident, or of an accident of a specified class, or dying as the result of an accident or of an accident of a specified class, becoming incapacitated in consequence of disease, or disease of a specified class, being contracts that are expressed to be in effect for a period of not less than five years or without limit of time and either not expressed to be terminable by the insurer before the expiration of five years from the taking effect thereof or are expressed to be so terminable before the expiration of that period only in special circumstances therein mentioned;
    • effecting and carrying out contracts of insurance, whether effected by the issue of policies, bonds or endowment certificates or otherwise, whereby in return for one or more premiums paid to the insurer a sum or a series of sums is to become payable to the persons insured in the future, not being contracts such as to fall within either paragraph (a) or (b); and
    • any kind of insurance business declared by regulation to be long-term business;
  • Reinsurance – means insurance business where the risk insured by a person is a risk that person has accepted from an insurer;
  • Registered Agents – A Registered insurer shall appoint a Registered Agent in Nevis where its principal place of business is outside Nevis and Manager is not resident in Nevis.

Minimum Paid Up Share Capital

The minimum paid up share capital for the classes of insurance business are as follows:

US$185,000 Long-Term Business
US$185,000 General Insurance Business
US$75,000 Reinsurance Business
US$10,000 Single-Owner Captive
US$20,000 Less than 5 Owners Captive and
US$50,000 5 or more Owners Captive
US$10,000 Allied Reinsurance Business
US$10,000 Allied Annuity Insurance Business

Minimum Margin of Solvency

“Minimum margin of solvency” is the amount by which an insurer’s assets must exceed its liabilities.

In the case of an insurer other than an insurer carrying on long-term business, the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in section 7 (1)(b) of the Ordinance or, if greater:

  • where the net retained premium of the insurer does not exceed $5,000,000 the prescribed amount is 20% of net retained premium;
  • where the net retained premium of the insurer exceeds $5,000,000, the prescribed amount is US$1,000,000 plus 10% of the amount by which net retained premium exceeds US$5,000,000.

In the case of an insurer carrying on long-term business the minimum margin of solvency shall be at least the minimum amount of paid up capital as prescribed in sub-regulation (a)(ii) of the Ordinance.

In the case of an insurer carrying on long-term business and other business the minimum margin of solvency shall be the aggregate of the amounts required by sub-regulations (a) and (b) of the Ordinance, in respect of both categories of business.

For the purposes of calculating the margin of solvency of an insurer, the registrar shall take into account all assets of the insurer that he reasonably considers to be allowable and shall exclude all those that he reasonably considers to be not allowable.

License Application Registration Renewal
Allied Annuity Company 450 1,500 1,500
Allied Reinsurance 450 1,000 1,000
Captive Insurer 450 2,000 1,500
General Insurance 2,500 3,000 3,000
Reinsurance 450 2,200 1,700
Long Term Insurance 2,500 3,000 3,000
Insurance Adjuster 500 2,000 2,000
Insurance Broker 500 2,000 2,000
Insurance Manager 500 3,000 3,000
Registered Agent 500 3,000 1,500
Penalties for late filing of any of the above renewal fees (to be paid in addition to renewal fee):-
(a) After January 31 1/2 of applicable annual renewal fee
(b) After June 30  a sum equal to the applicable annual renewal fee

 Other Fees (USD)

Certificate of Endorsement 10
Certificate of Incorporation 10
Change of Shareholder/Director/Other Control Person 300
Approval for Issue, Transfer, Disposal of shares where ultimate beneficial ownership remains the same 100
Change/ Amendment to the business plan 200
Dividend Request 300
Other Miscellaneous request 200
Request for extension of submission of annual accounts 300
Request for waiver of submission of annual accounts 200
Request for a name change 200
Request for change in auditor 300
Request for cancellation of licence 200
Request for re-domiciliation (outward) 200
Request for dissolution/voluntary wind up 200
Penalties
Late submission of annual accounts (General & Long Term) 1500.00 with 150.00 for each additional day for failing to submit
Late submission of annual accounts (Other) 200 with 50.00 for each additional day for failing to submit

  • All annual fees are due by 31st January each year for licenses in effect on 1st January of that year.
  • In the case of an insurer carrying on more than one class of business the prescribed fee shall be the aggregate of the prescribed fees in respect of each class of business.
  • Where an insurer is in run-off the prescribed fees shall be fifty percent of the regular fees.
  • External Due Diligence fees are subject to a rate of US$5,000.00 per person applicable to each foreign control person and or key persons wishing to conduct business under the following business entities namely: Insurance Manager, Registered Agent, Insurance Broker, and Insurance Adjuster.  Furthermore, please be advised that individuals who are proposed to be a control person of a General or Long Term Insurance Company may be required to undergo an external due diligence search at the discretion of the Registrar.

It is essential that all prospective applicants familiarize themselves with the relevant local insurance laws, regulations, rules and codes, including the anti money laundering requirements, before applying for a license to become a registered insurer in Nevis’ jurisdiction. An international insurer applicant should contact one of the licensed insurance managers in Nevis to discuss any management requirements. Please be aware that the Financial Services Department is unable to make any recommendations in this respect.

It is recommended that prospective applicants contact the Department at the earliest possible opportunity to discuss their outline proposals.

Should a prospective applicant wish to proceed with a formal application for licensing, a completed application form, together with the relevant fees and all necessary documentation, should be submitted to the Department for processing.

The required documents are as follows:

In order to apply for a registered insurer, registered Insurance Manager or registered agent’s license the following must be submitted to the Nevis Financial Services Department:

Completed Application form –

  • Completed Personal Questionnaire Form (Form 2) (all directors, beneficial owners and shareholders, managers and officers) At least 2 directors is required – Section 34 of the Ordinance
  • Completed Insurance Manager Undertaking Form (Form 6) (all beneficial owners of the entity to be registered)
  • Application fee
  • Due diligence documentation must be submitted with the application for each control person (directors/ shareholders/managers/officers) who have completed a Form 2, this includes:
    • Notarized passport declaration pages or government issued photo ID
    • Utility bill confirming address (dated within 3 months of application date)
    • 2 references: 1 professional reference (from accountant, lawyer, or administrator etc), 1 bank reference (on company stationery) attesting to good standing of individual
    • Police record (preferred) and/ or notarized criminal history declaration form or affidavit
    • Curriculum vitae for each control person (directors, manager, officers). For each director it is preferred that skill and expertise along with professional qualifications be highlighted.
    • Annual accounts for 2 years preceding year of application, of each shareholder which is a body corporate holding more than 10% of the applicant’s issued share capital or total voting rights, together with similar accounts for the parent body, if any, of each such body corporate.
  • Business plan must be submitted with application
  • Financial projections (3-5 yrs minimum) including Pro Forma Income Statement, Balance Sheet and Cash Flow Statement
  • Documents by which the body corporate is to be constituted such as Articles of Incorporation, Memorandum of Association, Articles of Association, By-laws etc. If not yet incorporated attach the proposed documentation.
  • Insurance Manager/ Registered Agent Agreement (ALLIED REINSURANCE AND ALLIED ANNITY).
  • A list of all insurers whom the applicant is, or will be engaged to act as manager or consultant (INSURANCE MANAGER/ REGISTERED AGENT)
  • External Due Diligence Fee of US 5000 per non national control person (INSURANCE MANAGER/ REGISTERED AGENT/ GENERAL INSURANCE/ LONG TERM INSURANCE)
  • An undertaking from company management that risks and premiums will only be assumed from named and approved primary company; (ALLIED REINSURANCE)
  • Specimen Contracts indicating (i) the annual maximum frequency and amount of contribution; and (ii) maturity (ALLIED REINSURANCE)
  • Registration fee is required to be paid before the applicant receives the license.
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Foundations

Part II of the Multiform Foundations Ordinance, Cap 7.08 sets out the establishment procedure for a foundation.

Like the formation of a company, one must first engage the services of a registered agent who is authorized to act as agent of the foundation. That registered agent must have an office to which all communications and notices may be addressed. The promoter of the foundation, through its registered agent may reserve a name prior to establishment of the foundation.

If the foundation is a trust foundation, then the name must accord with that multiform so that the trust foundation has the word “trust” in it. The name must not be prohibited by law: schedule 5 of the Nevis Multiform Foundation Regulation has a list of restricted names. Irrespective of the prohibited word list, the Registrar of Foundations will not reserve a name that is misleading, undesirable, confusing or similar to another name of an entity registered in Nevis.

Once the Registrar confirms that a name is available and valid for use, that name can be reserved for a period of one month. The Registrar has discretion to permit a name to be reserved for a longer period. Once a name has been reserved, the following establishment documents must be submitted to the Registrar in order to establish the Multiform Foundation:

  • Application Form
  • Consent Schedule
  • Memorandum of establishment setting out the following:
      • The foundation’s name and address of its registered office in Nevis;
      • The particulars of the initial subscription transferred, or to be transferred, to the foundation;
      • The particulars prescribed by the Registrar with respect to the registered agent;
      • The particulars prescribed by the Registrar with respect to any person or persons who are to be the first management board;
      • The particulars prescribed by the Registrar with respect to any person or persons who are to be the first supervisory board;
      • The particulars prescribed by the Registrar with respect to any person who is to be the first secretary;
      • An undertaking, in the case of a tax resident foundation, that the management board shall forthwith notify the Minister, by notice in writing, if the multiform foundation ceases to be a tax resident foundation;
      • A statement as to its initial multiform and which, in the absence of any such statement, shall presumed to be an ordinary foundation;
      • A statement as to whether the by-laws are to be made available for public inspection; and
      • Any other particulars required by the Registrar to be provided for under or in accordance with this Ordinance.
  • By laws (if standard by-laws are not adopted)
  • The relevant fees must accompany the documentation for establishment of a foundation.
The Matter in Respect of which Prescribed Fee Shall be Payable USD XCD
Filing Annual Return 300.00 810.00
Issuing any Certificate (including Certificate of Filing) 50.00 135.00
For undertaking an Apostille 50.00 135.00
Issuing a Certificate of Correction 150.00 405.00
Issuing a Certificate of Discontinuance 400.00 1,080.00
Issuing a Certificate of Establishment 300.00 810.00
Issuing a Certificate of Establishment by Consolidation 450.00 1,215.00
Issuing a Certificate of Establishment by Continuance 200.00 540.00
Issuing a Certificate of Establishment by Conversion 450.00 1,215.00
Issuing a Certificate of Establishment by Merger 450.00 1,215.00
Issuing a Certificate of Establishment by Transformation 450.00 1,215.00
Issuing a Certificate of Establishment for Change in Proper Law 200.00 540.00
Issuing a Certificate of Good Standing 50.00 135.00
Issuing a Certificate of Filing of Amended By-laws 200.00 540.00
Issuing a Certificate of Establishment of Change in Multiform 300.00 810.00
Issuing a Certificate of Registration on Change of Name 200.00 540.00
Issuing a Certificate of Revival 300.00 810.00
Issuing a Certificate of Tax Residency 1,157.00 3,215.00
Issuing a certified true copy of filed documents:
  -First three pages 30.00 81.00
  -Each additional page 1.50 4.00
For conducting searches 20.00 54.00
For late penalties for filing annual returns/filing document:
  – for first six (6) months 200.00 540.00
  – after six (6) months400 400.00 1,080.00
For undertaking a name reservation 50.00 135.00
For Undertaking a Renewal of Name Reservation 50.00 135.00
For filing a notice of change of or by the registered agent or situation of the registered office 50.00 135.00
For filing a notice of change of the particulars of the secretary, management board or supervisory board 50.00 135.00
For filing a notice of dissolution 300.00 810.00
For filing a withdrawal of a notice requesting by-laws are made available for public inspection on the Register 50.00 135.00
For filing a withdrawal of notice requesting that particulars of members of management board are available for public inspection on the Register 50.00 135.00
For filing a withdrawal of a notice requesting particulars of members of the supervisory board are available for public inspection on the Register50 50.00 135.00
For filing a notice requesting by-laws are made available for public inspection on the register 50.00 135.00
For filing a notice requesting particulars of members of management board are made available for public inspection on the Register 50.00 135.00
For filing a notice requesting particulars of members of supervisory board are made available for public inspection on the Register 50.00 135.00
For using a Restricted word 30.00 135.00
For receiving voluntary filings 50.00 135.00
Administrative Fee (rush requests,re-application of Fees requests etc.) 100.00 270.00
Using Foreign or Special Character 20.00 54.00
Printing of Certificate 10.00 27.00
Administrative Fee (Refunds) 50.00 135.00
For filing of Bylaws 200.00 540.00
For filing a notice of withdrawal of Bylaws 50.00 135.00
For filing Court proceedings by a Registered Agent with the Registrar 60.00 162.00
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Trusts

Part 7, Section 36 of the NIETO outlines the registration process for Trusts.

The registration of a Trust must be carried out by a registered agent, such as an attorney or local management company. An application for entry on the register of International Trusts shall be made in a manner and form prescribed by the Registrar. The application shall be accompanied by:

  1. The prescribed fee
  2. Notice of the name and registered office of the Trust
  3. Undertaking that Trust document has been read and it conforms with NIETO
  4. Name of the Trustee – one of the trustees has to be a corporation incorporated under the NBCO or a trust company doing business in Nevis
  5. A certificate from a trustee company, a barrister or solicitor certifying:-
    1. That the trust upon registration will be an international trust
    2. The date on which the Trust was created, settled or established
    3. In the case of a qualified foreign trust, the law under which the trust was settled
    4. Where the governing law is changed to the law of Nevis, that the trust is registered as a qualified foreign trust and the date of its registration
    5. (a) There has been no changes made to the International Trust
      (b) There is no illegal activity perpetuated by the Trust and/or
      (c) Pending litigation against the Trust
Type of Document XCD USD
Registration Fee (International Exempt Trust) 810.00 300.00
Registration Fee (Qualified Foreign Trust) 810.00 300.00
Certificate of Registration  54.00  20.00
Annual Renewal Fee 810.00 300.00
Certificate of Renewal of Registration  54.00  20.00
Penalty for Late Renewal 1,080.00 400.00
Reinstatement/Restoration Fee 810.00 300.00
Certificate of Good Standing  135.00  50.00
Voluntary Filings 135.00  50.00
Termination of Trust 405.00  150.00
Apostille  135.00  50.00
Miscellaneous Letter 270.00  100.00
Administrative Fee (rush requests, re-application of fees request etc.)  270.00  100.00
Filing Notice of Change of Registered Agent and Registered Office 135.00  50.00
Filing Notice of Change of Trustee  95.00  35.00
Name Reservation ( after 10 days )  135.00  50.00
Renewal of Name Reservation  135.00  50.00
Certified True Copies of Filed Documents (Including first 3 pages)  81.00  30.00
Each Additional Page   4.00   1.50
Certificate Certifying True Copy  95.00  35.00
Using a Restrcited Word 81.00 30.00
Using Foreign/Speical Character 54.00 20.00
Printing of Certificate 27.00 10.00
Duplicate Certificate of Registration 68.00 25.00
Filing Notice of Change of Name/Amendment 540.00 200.00
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IBCs

Part IV of the NBCO deals with the incorporation of IBCs and sets out the guidelines to follow.

The incorporation of a Nevis IBC must be carried out by a duly licensed registered agent.

  1. The name of the corporation may be reserved.
  2. The registered agent files the Articles of Incorporation with the Registrar of Corporations.
  3. The Articles of Incorporation must include the following:
    1. the name of the corporation;
    2. the authenticated translation of the name of the corporation, if it is so registered;
    3. a statement that the corporation is incorporated under this Ordinance;
    4. the succession of the corporation if other than perpetual;
    5. the purpose or purposes for which the corporation is incorporated;
    6. the name of the registered agent of the corporation;
    7. the registered office of the corporation in Nevis which shall be the address of its registered agent;
    8. the aggregate number of shares which the corporation shall have authority to issue; description and par value if any to be included;
    9. if the initial directors are to be named in the Articles of Incorporation, the names and addresses of the persons who are to serve as directors;
    10. the name and address of each incorporator;
    11. The articles must be signed by the incorporator(s), execution of which is to be done in accordance with Section 4.
Particulars XCD USD
Articles of Incorporation 810.00 300.00
Articles of Incorporation with Bylaws 810.00 300.00
Certificate of Incorporation 54.00 20.00
Endorsement Certificate 54.00 20.00
Articles of Amendment 540.00 200.00
Annual Renewal Fee 810.00 300.00
Articles of Merger or Consolidation/Conversion 1,215.00 450.00
Re-stated Articles of Incorporation 311.00 115.00
Articles of Dissolution 810.00 300.00
Certificate of Dissolution 54.00 20.00
Certificate of Renewal 81.00 30.00
Certificate of Correction 405.00 150.00
Certificate of Good Standing 135.00 50.00
Voluntary Filings 135.00 50.00
Name Reservation (after 10 days) 135.00 50.00
Renewal of Name Reservation 135.00 50.00
Certified True Copies of Filed Documents  
(Including first 3 pages)         
81.00 30.00
    -Each Additional Page 4.00 1.50
Copies of Filed Documents (per page) 4.00 1.50
Certificate Certifying True Copy of Filed Documents 95.00 35.00
Filing Notice of Change of Registered Office/Agent 135.00 50.00
Apostille 135.00 50.00
Transfer of Domicile to Nevis 540.00 200.00
Certificate of Departure 1,080.00 400.00
Emergency Transfer of Domicile to Nevis 932.00 345.00
Tax Exemption Letter 270.00 100.00
Any other Certificate 68.00 25.00
Penalty for late filing of Annual Fees
 -(First six months) 540.00 200.00
 -(After six months) 1,080.00 400.00
Reinstatement/Restoration Fee 810.00 300.00
Miscellaneous Letter 270.00 100.00
Corporation Search (inspection only) 54.00 20.00
Corporation Search Report (including inspection) 162.00 60.00
Administrative Fee (rush request, re-application of fees requests etc). 270.00 100.00
Application for Registration of a Charge 675.00 250.00
Application for Variation of Registered Charge 675.00 250.00
Registration of Satisfaction of Registered Charge 675.00 250.00
Filing Notice of Resignation of Registered Agent 135.00 50.00
Certificate of Continuation 54.00 20.00
Issuing a Statement/Declaration of Involuntary Dissolution 54.00 20.00
Failure to obtain or designate a new Registered Agent 1,350.00 500.00
Duplicate Endorsement Certificate 68.00 25.00
Duplicate Certificate of Incorporation 68.00 25.00
Using a Restricted word 81.00 30.00
Using Foreign/Special Character 54.00 20.00
Printing of Certificate 27.00 10.00
Administrative Fees (Refunds) 135.00 50.00
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LLCs

Part IV of the NLLCO offers direction on the formation of LLCs.

The organisation of an LLC must be carried out by a duly licensed registered agent.

  1. The name of limited liability company may be reserved.
  2. The registered agent files the Articles of Organisation with the Registrar of Companies.
  3. The Articles of Organisation must include the following:
    1. the name of the limited liability company;
    2. the authenticated translation of the name of the limited liability company, if it is so registered;
    3. a statement that the limited liability company is formed under this Ordinance;
    4. the latest date on which the limited liability company is to dissolve, or if the limited liability company shall have unlimited duration;
    5. the name of the registered agent of the limited liability company;
    6. the registered office address of the limited liability company in Nevis which shall be the registered office of its registered agent;
    7. whether the limited liability company is managed by managers exclusive of the members or by all of the members in their capacity as members;
    8. the purposes for which the limited liability company is formed;
    9. the name and address of each organiser of the limited liability company.
Type of Document XCD USD
Articles of Organization 810.00 300.00
Articles of Organization with Operating Agreement as exhibit 810.00 300.00
Endorsement Certificate 54.00 20.00
Articles of Amendment 540.00 200.00
Annual Renewal Fee 810.00 300.00
Restated Articles of Organisation 311.00 115.00
Articles of Dissolution 810.00 300.00
Certificate of Dissolution 54.00 20.00
Articles of Merger/Consolidation/Conversion 1215.00 450.00
Certificate of Renewal 81.00 30.00
Certificate of Good Standing 135.00 50.00
Voluntary Filings 135.00 50.00
Name Reservation (after 10 days) 135.00 50.00
Renewal of Name Reservation (after 10 days) 135.00 50.00
Certified True Copies of Filed Documents
(Including first 3 pages)
81.00 30.00
Each additional page 4.00 1.50
Copies of Filed Documents (per page) 4.00 1.50
Certificate of Certifying True Copy of file documents 95.00 35.00
Filing Notice of Change of Registered Office/Agent 135.00 50.00
Apostille 135.00 50.00
Transfer of Domicile to Nevis 540.00 200.00
Certificate of Departure 1,080.00 400.00
Emergency Transfer of Domicile to Nevis 932.00  345.00
Tax Exemption Letter 270.00 100.00
Any Other Certificate 68.00 25.00
 Penalty for late filing of Annual Fees
   -(First six months) 540.00 200.00
   -(After six months) 1,080.00 400.00
Reinstatement Fee/Restoration Fee 810.00 300.00
Certificate of Correction 405.00 150.00
Miscellaneous Letter 270.00 100.00
Company Search ( includes inspection only) 54.00 20.00
Company Search Report ( including inspection ) 162.00 60.00
Administrative Fee (rush requests, re-application of fees request etc.) 270.00 100.00
Certificate of Formation 54.00 20.00
Application for Registration of a Charge 675.00 250.00
Application for Variation of a Registered Charge 675.00 250.00
Registration of Satisfaction of a Registered Charge 675.00 250.00
Filing Notice of Resignation of Registered Agent 135.00 50.00
Certificate of Continuation 54.00 20.00
Issuing a Statement/Declaration of Involuntary Dissolution 54.00 20.00
Failure to obtain or designate a new Registered Agent  1,350.00 500.00
Duplicate Endorsement Certificate 68.00 25.00
Duplicate Certificate of Incorporation 68.00 25.00
Using a Restricted word 81.00 30.00
Using Foreign/Special Character 54.00 20.00
Printing of Certificate 27.00 10.00
Administrative Fees (Refunds) 135.00 50.00
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