Many family offices seek to obtain financial licenses that allow them to establish a brokerage business, an EMI, or even a bank. Establishing your own bank for your family office is as old as the very same concept of a family office because Baron Rothschild himself used it. A bank or at least a financial institution gives you more flexibility and security to protect your assets and is an outstanding source of income. 

As usual, Nevis is an excellent option for a financial license. Why? Because it is not as expensive as an A+ jurisdiction (where it is almost impossible to receive one of these licenses) but is a reputable place, has an excellent financial infrastructure and, of course, is much more affordable. 

Nevis offers you financial licenses with budget-friendly costs and has regulations oriented towards protecting investors and promoting their businesses. There are different license classes issued under the Money Services Act, No. 26 of 2008, which shall authorize the holders to conduct the money services business as specified. 

Among all the benefits mentioned before, in general, we could say that doing business in St. Kitts and Nevis offers the following opportunities: 

- It is relatively easy since it is an economically and politically stable jurisdiction.

- It has more than 30 years of experience as an international financial center. 

- This country has flexible legislation and a qualified pool of professionals with expertise in asset management, finance, taxation, banking, law, and accountancy.

- There are no taxes on foreign-sourced income and LLCs don’t pay taxes in Nevis, meaning it’s excellent for offshore financial services. 

- Most Nevis licenses are relatively easy to receive as long as you comply with the requirements, and are also among the most affordable worldwide. 

- Nevis was one of the first Caribbean countries to enact a crypto and fintech sandbox to promote financial innovation within its territory. 

The type of structures that can be useful in Nevis include the following: 

- Investment clubs and small funds using the Berkshire Hathaway legal model (i.e., an LP) can be wrapped up in combining the limited partnership laws with the multipurpose foundation. Thus, they can establish a robust and private fund-type investment vehicle to pool capital amongst club members. 

- The above-mentioned Money Services Act 2008 allows applications for a money transmission or what is sometimes called an e-money license. The application allows companies to send and transfer money. This is at a fraction of the cost of utilizing jurisdictions such as Cyprus or the UK. Further, profits made from offshore activities are not taxed in Nevis.

- Nevis allows offshore banks and onshore cooperatives to be formed, thus allowing family offices to create their own banking entities. See our banking section here.

- Nevis has excellent captive insurance legislation, which is an overlooked yet good option for family offices. 

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How to Obtain a Financial License in St. Kitts and Nevis? 

To obtain a license as a money services business, an applicant must follow the following process: 

1.Apply in writing to the Financial Services Regulatory Commission.

2.Pay the prescribed application fee, complete Form A and B as stated in Schedule 2 of the Money Services Business Act of 2008, and send the established documents.

3.Then, the Financial Services Regulatory Commission will process the application. After this, if the FSRC determines the application is in order, it will approve the application and issue a license to the applicant after payment of the license fee and making the statutory deposit determined by the Money Services Business Act. 

In considering whether an applicant is a fit and proper candidate, the Authority shall have regard to, in respect of each of its significant shareholders, directors, executive management, agents and officers:

(i) his financial status;

(ii) his educational or other qualifications or experience having regard to the nature of his application;

(iii) his ability to perform his proposed function efficiently, honestly and fairly; and

(iv) his reputation, character, financial integrity and reliability. 

Types of Licenses: Class A, B, C, D, and E 

There are different kinds of licenses in St. Kitts and Nevis. Some of these are: 

Class A License: It allows the holder to do money transmission business or with any kind of monetary value. It also allows them to issue, sell, or redeem money orders or traveler's cheques, cheque cashing, and currency exchange. 

Class B License: allows the holder to do business with the issuance, sale, or redemption of money orders or traveler's cheques, cheque cashing, and currency exchange. 

Class C License: allows the licensee to carry out cheque cashing. 

Class D License: allows the licensee to conduct a currency exchange business. 

Class E License: It allows the holder to carry out payday advances. 

As St. Kitts and Nevis is a robust jurisdiction, taking advantage of the regulations’ benefits (in terms of the financial services industry) requires planning and experts' knowledge. As usual, you can count on our experts for this since they know St. Kitts and Nevis’s processes first-hand. We can solve most of your licensing needs in this jurisdiction. 

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What are the Legal Requirements for a Financial License in St. Kitts and Nevis? 

According to the FRSC, the entity making the application can be a company, limited partnership, unit trust, or any other similar body formed under the laws of St. Kitts and Nevis or any other jurisdiction that collects and pools investor funds for collective investment. 

Besides this, the licensee will need at least 2 (two) natural persons that serve as fit and proper directors of any jurisdiction and at least one shareholder. Corporate shareholding is allowed, and 100% foreign ownership is permitted. 

Where different business places are kept in the name of the same person, a separate license should be required for each of these places of business. 

Now, we will discuss what the legislation does not require to obtain a license in Saint Kitts and Nevis. We can mention that you do not need an office to apply for a financial license in this country. This is perfect for those who live abroad but want to expand their horizons into St. Kitts and Nevis and obtain a financial license in this jurisdiction. 

 

Fees 

Here you will find some official fees that must be paid to the regulator when applying to obtain a financial license in St. Kitts and Nevis.

As you can see, they vary depending on which kind of license interests you. 

Now, you can also check the following table, which shows more detailed information about fees depending on the type of business you want to develop and if you desire a restricted or unrestricted license. If you want to know more details about these kinds of licenses don’t hesitate to contact our team of experts at Mundo. 

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Fees to Conduct a Financial Business Under the Financial Services Regulations Order

All license fees under their jurisdiction must be paid to the General Accountant and are part of the Consolidated Fund. However, there’s a sole exception: when the money services business will be conducted in Nevis itself. In this case, the license fees and any other fees must be paid by the licensee to the Nevis Island Administration and they will be part of the Consolidated Fund of Nevis. 

What Else Should You Know About Obtaining a Financial License in St. Kitts and Nevis? 

Once you pass all the process and obtain the license you are looking for, you must renew it annually after registration. If St. Kitts and Nevis Finance Service Commission is satisfied with your development as a licensee, they may regrant the renewal of it.

As someone who holds a St. Kitts and Nevis financial license, you must submit, within ninety days after the financial year's end, audited financial statements to the Commission. These must be prepared under international accounting standards and contain such additional information as may be prescribed. In this sense, you must be aware that the financial year begins on the day the licensee starts his/her business activities. 

Finally, the licensee must maintain appropriate insurance policies to indemnify against any liability that may be incurred due to any act or omission by the licensee or any of its officers or employees in the management or conduction of the business. 

What Can We Do For You? 

St. Kitts and Nevis regulations around financial licenses are beneficial to anyone looking for this option in a robust and simple jurisdictional frame. It is accessible, not as expensive as other countries, and it provides excellent business opportunities. All the advantages, details, and information previously given to you are just a fraction of what you can get when obtaining a financial license in this amazing country.

And, as usual, Mundo experts can assist you. We work with some of the best financial experts in St. Kitts and Nevis, who can help you obtain your desired financial license quickly and easily. We offer all primary services regarding the application process and we can also help you get your business to the next level. Contact us right now. 

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