Business in Saint Kitts and Nevis

A business can operate as a sole trader, partnership or company. Saint Kitts uses the Companies Act, Cap. 21.03, while Nevis uses the Companies Ordinance, Cap. 7.06(N). Nevis also provides for local companies, non-profit companies and external companies. An external company must register before carrying on business, and a Nevis company must maintain a registered office within Nevis. The Business and Occupation Licence or Business Licence must be obtained before operations begin. The requirement depends on the business type and location, and each business premises generally requires its own licence. In Saint Kitts, the application goes to the Ministry of Finance in Golden Rock and normally includes the completed form and two photo IDs for each owner. A business may need additional sector approvals; a restaurant, for example, may require a Health Officer inspection. In Nevis, the applicant applies through the Ministry of Finance, receives a Notice of Approval and pays the relevant amount through the Inland Revenue Department before starting. The licence certificate must be displayed. A licence is generally not transferable between locations or holders, except in situations such as the death of an individual holder or the sale of a company. Changes to the location or registration should be reported to the Ministry of Finance and the Inland Revenue Department. Nevis renewals are due by 31 January, and late renewal attracts 12% annual interest. Fees depend on the category and should be confirmed with the responsible island authority. The Inland Revenue Department registers the business and the taxes that apply to it. Electronic services and SMARTS are available for relevant tax administration. A corporation registered in Saint Kitts and Nevis is subject to 25% CIT from 1 January 2024. CIT returns are due three and a half months after the fiscal year ends; a 31 December year-end therefore gives a 15 April filing deadline. An unincorporated business may owe UBT at 4% of taxable gross takings after exemptions. The UBT thresholds stated in the Inland Revenue Department guidance are EC$37,500 per quarter for goods and EC$6,000 per quarter for services. UBT payments are due quarterly on 15 March, 15 June, 15 September and 15 December. VAT has a standard rate of 17%. Registration generally applies when goods exceed EC$150,000 or services exceed EC$96,000 in a 12-month period. VAT registration is free. Registered businesses must issue proper invoices, include VAT in their prices and file and pay monthly by the 15th of the following month. Public entertainment and auctioneering have additional rules, including advance registration for public entertainment at least seven days before the event. The Inland Revenue Department guidance lists 1% monthly interest, a 10% tax-due penalty and EC$100 per month for late filing in the relevant UBT and VAT cases. Other possible charges include Insurance Premium Tax or registration fees, Island Enhancement Tax, customs and import charges, liquor licensing, health approvals and tourism licences. A company must keep its statutory and financial information current. In Saint Kitts, an annual return is due each year by the end of the month after the anniversary of incorporation or registration. Nevis requires annual returns under its company rules; current guidance for a 2025 return states a 31 March 2026 deadline, EC$150 for a local company and EC$100 for an external company, with a late fee of EC$250 per month from 1 April 2026. Director, secretary, registered-office, financial and solvency information should remain accurate. Businesses should retain tax, accounting and supporting records for at least six years. The Inland Revenue Department may audit an incorporated entity or an individual who operates a business. Employers must register with the Social Security Board, keep wage and contribution records and submit periodic returns. Self-employed coverage is a separate formal option. Tax clearance and certificates of good standing can be needed for government transactions, concessions and licence renewal. Financial-services businesses require authorisation or licensing from the Financial Services Regulatory Commission; an ordinary Business Licence does not replace that approval. Support is available through the Small Business Development Center in Saint Kitts, which assists with registration and licensing, business plans, training, accounting, marketing and financial planning. The Ministry of Small Business and Entrepreneurship and the National Bank offered the 10-week Building Bankable Businesses programme in 2026, covering budgeting, cash flow, records and bankability. Participation does not guarantee financing. SKIPA supports investment facilitation, permits, licences, exports and incentive recommendations. On Nevis, NIPA is a first contact for investment approvals, incentives, local partners and electronic forms for incorporation, business licences, work permits and building permits. The Returning National/Diaspora Investment Policy can support an eligible returnee who starts or acquires a business within 12 months of returning and invests at least US$100,000. The policy provides for CIT and UBT exemptions in years one to three, a Business Licence fee waiver in year one and a 50% rebate in years two and three. It can also provide a 50% reduction in work-permit fees for trained foreign workers during years one to three when the applicant maintains the licence and meets the application conditions. These benefits require approval and do not arise automatically. A sale, ownership change or relocation can affect the licence, company records, tax registration and sector approvals. A company licence may be transferable on a company sale, but moving the business generally requires a new or amended licence. Closing a business requires more than stopping sales. Saint Kitts company winding-up procedures can involve a special resolution and a statement of solvency, followed by filing with the Registrar within the applicable period. Where creditors are at risk, creditors' or court winding-up may be required. Nevis uses solvency certificates, winding-up forms and Registrar filings under its Companies Ordinance. The owner should also notify the Inland Revenue Department, licensing authority, Social Security Board and Customs where applicable, file final returns and settle outstanding liabilities. Current fees, tax changes, permit conditions and closure forms should be confirmed with the Ministry of Finance, Inland Revenue Department, Registrar, NIA or the relevant sector authority.