COMMERCE AND INDUSTRY IN ST KITTS

St. Kitts and Nevis has a progressive government that is pro-democratic, with a unicameral house, with a Prime Minister as head. They still have strong ties to mother England, although the Caribbean island nation is independent.

The government encourages private investment in the islands, and there is many ways to bring new industries to the island to make them profitable. The government also helps with implementation of strong business concerns. The island recently added 3,000 hotel rooms. The airport can land jumbo jets. Presently charters from Canada and Britain fly into the Golden Rock Airport, as does scheduled flights from the United States and the Caribbean. The major trading partners are the United States, Canada and Europe, with much of the sugar crop going to these partners.

Cable and Wireless provides the island's international direct dialing, credit card calling, Internet, pager, cellular phone and other services.

The water in St. Kitts and Nevis is of high quality. Sanitation and waste management are improved with the new OECS Solid Waste Management project. The electricity is 220 volts at 60 cycles.

Foreign development is part of the government's investment strategy in the Federation. There is a sector led economy.

The St. Kitts-Nevis Chamber of Industry and Commerce
South Independence Square
Basseterre, St. Kitts W.I.
Tel: 869/465-2980

Ministry of Trade and Industry
Government Headquarters
Church Street
Basseterre, St. Kitts, W.I.
869/465-2521

Banks and Commercial Facilities

The Eastern Caribbean Central Bank (ECCB) and Eastern Caribbean Home Mortgage Bank have their headquarters in St. Kitts. Three major international banks are established - Bank of Nova Scotia, Barclay's Bank Plc and Royal Bank of Canada. The currency is the Eastern Caribbean Dollar.

Off-Shore Finance

St. Kitts and Nevis has passed laws, providing for the creation of offshore companies, limited duration companies, trusts and asset management and stock broking.

The legislation provides a full compendium of complementary laws, which provide powerful asset protection and are exempt from income, corporation, gift, withholding, estate, asset, inheritance, succession and stamp tax. Here is a listing of the major contacts on the islands:

Mobius Trust Company
H & F Henville Building
Suite No. 3
Prince Charles Street
Charlestown, Nevis
Tel: 869/469-0896
Fax: 869/469-0908
mobius@caribsurf.com

A full service trust company offering asset projection plans, proprietary income and estate tax reduction plans (compliant), estate and tax planning, design and formation of trusts; formation and management of corporations and limited liability companies; private investment portfolio management services; non-discretionary trading facilities; establishing bank accounts.

Beaumont Corporation Limited
Heritage Plaza
PO Box 530
Main Street
Charlestown, Nevis
Tel: 869/469-1600
Fax: 869/469-5722
Beaumont@caribsurf.com
www.beaumontcorp.com

Beaumont Corporation Limited is licensed by the Nevis Government to act as a trustee of Nevis International Trusts and to provide fiduciary, corporate management and administration services in Nevis. Services include trustee and co-trustee services; trust registration, formation of companies, maintenance of statutory books and records, directors, officers, nominee shareholders, company redomiciliation, administration services, mail and facsimile forwarding.

Morning Star Holdings Limited
Hunkins Plaza,
Main Street
PO Box 556
Charlestown, Nevis, W.I.
Tel: 869/469-1817
Fax: 869/469-1794
mornings@caribsurb.com

U.S. Representative:
Mario M. Novello

Nevis Services Limited
Tel: 212/575-0818
Fax: 212/575-0812
www.nevisserve.es.com

Nevis International Trust Company Ltd.
PO Box 642
Charlestown, Nevis
Tel: 869/469-0079
Fax 869/469-5898
inttrust@caribsurf.com
www.inttrust.com

First Nevisian Stockbrokers Ltd.
Henville Building
Prince Charles Street
Charlestown, Nevis
Tel: 869/469-1812
Fax: 869/469-1204
info@firstnev.com

Caribbean Trust Company (Nevis) Ltd.
PO Box 623
Hunkins Plaza
Main St.
Charlestown, Nevis
Tel: 869/469-1612
Fax: 869/469-1274
cartrust@caribsurf.com

Asset protection, company formation, IBCs and LLCs, management and administrative services, bank and brokerage accounts established.

First Nevisian
Hanville Building
Prince Charles Street
Charlestown, Nevis W.I.
Tel: 869/469-1812
www.firstnev.com
International fax and voice mail in the UK - 44 20 7681 1798
Fax: 212/253-4031 in the U.S.

Authorized by the Nevis Island Government to conduct stockbroking and investment business. Registered agency under the authority of the Nevis Island government. Trading equities, currencies, fixed interest securities, sovereign and commercial debt on all international and emerging markets, portfolio and investment management, global custodial services, multi-jurisdictional structural planning for income and asset protection, offshore trust and company formation and administration, credit cards banking facilities, international ship registration.

Land Availability

Favorable leasing arrangements are available for government land if applicants can show potential benefits to themselves and the country. Private land is also available for purchase or lease for residential or commercial developments after obtaining a land holding license.

Taxation

Fiscal incentives provided by the government include tax exemptions of up to 15 years, with follow-on exemptions up to 75%, based on the proportion of earnings generated by exports, duty free import of equipment, machinery, spare parts and raw materials used in production, and repatriation of profits, dividends, and capital. Companies, which have not been granted tax exemptions, pay an annual tax of 40% of net profits.

There is no personal income tax, net worth tax, gift tax, sales tax, turnover tax, or estate duty. Land and House Taxes are 5% of the annual rental value of the property. There is a 25% rebate on the tax for property, which is solely residential.

Business Opportunities

Investment opportunism exist in tourism and other sectors. The country is planning to add about 3,000 more rooms on the island. The following businesses suggest themselves as possibilities for potential investors: information technology, electronic assembly and manufacturing, apparel manufacturing, rum distilling, agribusiness, food processing, livestock raising, cut flowers, vegetable, and citrus production, footwear assembly, and manufacturing, and plastics manufacturing. All require a Trade License.

Shipping

There are regular freight services to St. Kitts and Nevis from the U.S. and Europe. Most ocean freight is now fully containerized. The deep-water harbour easily accommodates ships, which service the islands. Smaller carriers also sail between the Federation and Puerto Rico, the U.S. Virgin Islands and St. Maarten.

Media

There are four newspapers on the islands: The Democrat, The Leeward Times and The Observer, published weekly and The Labour Spokesman, twice weekly. Four radio stations and ZIZ TV and two cable TV systems.

St. Kitts Air and Sea Ports Authority

FFormed by the government of St. Kitts and Nevis, the Authority began operations September 1, 1993. Since then it has improved, enlarged and expanded its facilities, efficiency, services, and scope of operations tremendously. It now operates the Port Zante cruise ship port (totally destroyed by the latest hurricanes, but slated for rebuilding), the deep-water cargo port (cruise ship passengers are tendered ashore), and the newly expanded Robert Llewellyn Bradshaw airport (Golden Rock). The enhancement of all three is already offering the benefits of more efficient service for all its customers

The Authority's customers include importers, exporters, airline agents, tourists, and the general public. The Chief Executive Office, Mr. Thomas Williams, states it clearly. "We have diversified the use of the ports to benefit the cruise ships and their passengers, the cargo port and its shippers, the airport and all its users. We are moving St. Kitts up to the front rank."

The new cruise ship facility at Port Zonte had two berths capable of handling ships over 900 feet long with a draft of up to 30 feet, plus berthing space for two smaller ones with a maximum draft of 20 feet. The attractive arrival building, the access road, and a pedestrian promenade to town combined to create the newest most attractive and tourist friendliest facility in the islands. This is all slated to be rebuilt after the latest hurricanes took it all out to sea.

The cargo port has a 400-foot main berth, a roll-on, roll-off berth, two transit sheds, container storage area, modern cargo handling equipment and 245 employees. The airport expansion has doubled the passenger terminal with modern baggage-handling facilities, extended airplane and car parking areas.