Gbskn2 online 12 15 (1)

The Golden Book of

Saint Kitts 2nd edition - 2015

www.goldenbookskn.com

The Golden Book of

Saint Kitts 2nd edition - 2015 www.goldenbookskn.com

THE INVESTMENT GUIDE

A COMPREHENSIVE REFERENCE MANUAL FOR INVESTORS & TOURISTS

Readers of the Golden Book of Saint Kitts are referred to the St. Kitts Investment Promotion Agency website: www.investstkitts.kn

TABLE OF CONTENTS Message from the Honourable Prime Minister of St. Kitts, Dr. Timothy Harris............................4 Message from St. Kitts Investment Promotion Agency (SKIPA).............................................6 SKIPA Profile................................................8

GENERAL INFORMATION..................... 10 St. Kitts History......................................... 12 St. Kitts Economic Profile............................. 14 Quick Facts.......................................... 14 Currency............................................. 14 Banks................................................. 14 St. Kitts: Geographic Profile.......................... 16

Steps to Establishing a Business...................... 28 Priority Sectors for Investment...................... 42 1. Tourism........................................... 42 2. Financial Services.............................. 48 3. Information Technology....................... 52 4. Agriculture....................................... 53 5. Renewable Energy.............................. 56 6. International Education....................... 57 7. Light Manufacturing............................ 59 St. Kitts and Nevis International Ship Registry.... 60 ADVERTISER’S INDEX................................... 64

Location.............................................. 16 Distance by Air...................................... 16 Map of St. Kitts..................................... 17 Why Invest in St. Kitts................................. 18 Contacts................................................... 20

INVESTMENT GUIDE.......................... 22 The Economy............................................ 24 Incentives................................................. 25 Taxation................................................... 26

This book is published by Media Publishing International N.V. on behalf of the St. Kitts Investment Promotion Agency (SKIPA) Media Publishing International N.V. #44 Welfare Rd., Laguna View Commercial Building, Suite 2D - 2nd floor, Cole Bay, St. Maarten Tel: 1 (721) 527-5111 | Fax: 1 (721) 544-3462 General Manager & Publisher: Emile Cukier E-mail: emilecukier@gmail.com Layout & Design: Estrelinda Rollan-Mc Quilkin E-mail: lindarollan@gmail.com All rights reserved. No part of this publication may be reproduced without the prior written permission of the publisher. The publisher is not responsible for any error or omission, which may be only the result of an accident.

2015 © Media Publishing International N.V.

Cover Photo: Port Zante © St. Kitts Tourism Authority

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| The Golden Book of St. Kitts - GENERAL INFORMATION

Message from Honourable Prime Minister

Dr. Timothy Harris Greetings, I am delighted to bring greetings on behalf of the people of our great federation, St. Kitts and Nevis.

We thank you for reading the Golden Book of Saint Kitts and Nevis which is an investment guide for those interested in partnering with us. This guide will give you a snapshot of the history of our beloved Island as well as the many projects that are being developed. This guide will show that we understand the value of a true partnership. Our government understands that investment and opportunity are the core of our long term economic strength. We cannot do it alone.

Our federation has embarked on a new journey together to promote entrepreneurship, grow and strengthen our middle class, invest in our human capital, build infrastructure, create jobs and provide an environment where all can prosper.

These are exciting days as our new government is open and ready for business and investment. Our infrastructure is ready.

We have a great convenient international airport and convenient roads. Our Ministries are ready promoting our beautiful hotels, majestic mountains and breathtaking beaches. Our people are ready with warm smiles, big hearts and a strong resolve.

The opportunities are here. Development, tourism, international education, renewable energy, information technology, light manufacturing, financial services, research and agriculture, just to name a few. The potential is limitless if we work together.

Our Citizen by Investment Programme is still second to none around the world. That notwithstanding, we continue to make it better and stronger by putting in place the necessary safeguards to ensure its long term viability and success.

Our theme is “Working for You”. The you of course represents the people of our great federation. In addition, you represents people like you who believe in St. Kitts and Nevis and know that together we can be great.

We do not take for granted when someone decides to invest their money in our many projects. In fact, we are honored when that happens because that way we build long term, mutually beneficial relationships. When someone decides to visit us we want to ensure they return.

In St. Kitts and Nveis we greet each other with the word FAMILY! Well we want you to come to our federation where you are and will be treated like FAMILY! We are at the dawn of a new era of prosperity for all. It’s a new beginning. Come join us!

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| The Golden Book of St. Kitts - GENERAL INFORMATION

Message from

Greetings and a warm welcome to our second edition of The Golden Book of St. Kitts!

We are delighted that you have taken the time to peruse the contents of the official investment guide of the St. Kitts Investment Promotion Agency. The Golden Book of St. Kitts consolidates everything you need to know about investing in St. Kitts into this easily readable format with up to date information on the economy, priority sectors for investment and much more.

At SKIPA, our various departments, Investment Facilitation, Investment Promotion, After Care Services and Policy Advocacy all work together for the betterment of the investor by lobbying for policy changes as well assisting with the exploration of business opportunities and the successful establishment of businesses with the aim of enhancing the investment climate here in St. Kitts.

We are proud to report, that in 2014, Foreign Direct Investment (FDI) surpassed US$1.1 billion and with over half a billion dollars worth of investments already in the pipeline for 2015, FDI growth is expected to remain strong. The inflows of FDI are dominated by investment in high-end real estate; condominiums, villas and hotels. The investment flows into the real estate sector are spurred by the Government’s Citizenship by Investment Programme (CBI) and the increase in direct flights to St. Kitts from key North American and United Kingdom markets.

You are invited to familiarize yourself with the many opportunities available for investment under our priority sectors: tourism, information technology, agriculture, and financial services, Renewable Energy, International Education, Light Manufacturing and our newest sector Film Making. We have partnered with leading Hollywood’s creative talents, to establish St. Kitts as an International Film hub of the Caribbean. A number of films are already in the pipeline to be filmed substantially or in part in our beautiful country. We believe that this new industry can underpin our efforts to diversify and enhance the private sector investment portfolio, provide alternative job opportunities and facilitate knowledge transfer in film production.

At SKIPA we hope that you will find The Golden Book of St. Kitts as a useful resource for information about investing in St. Kitts. Our highly professional staff is looking forward to working with you.

Let us help you make your vision a reality.

Sincerely, St. Kitts Investment Promotion Agency (SKIPA)

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| The Golden Book of St. Kitts - GENERAL INFORMATION

SKIPA PROFILE What We Do? (How Can We Help You) The St. Kitts Investment Promotion Agency (SKIPA) is the Government’s premier Agency responsible for attracting Foreign Direct Investment (FDI) and supporting the expansion of local investment. The Agency has been mandated to play a critical role in

the Government’s diversification plan and as such actively promote investment in tourism, information technology, financial services, international education, manufacturing, renewable energy and agriculture.

The Agency provides a one-stop shop service, where investors receive assistance in getting their projects started. Some of the services provided at SKIPA include assistance with; approval of projects for Citizenship by Investment, site visits and applications for concessions.

Our core values include; projecting a positive image of St. Kitts in the investment market through proactive promotion strategies, functioning in a facilitative role for foreign and local investments, providing aftercare services for investors and advocating for the continued development and enhancement of the business climate in St. Kitts.

We aim to meet the needs of each investor by providing prompt and reliable information in connection with opportunities for investment and much more.

For more information please contact us at: St. Kitts Investment Promotion Agency 3rd Floor, Cable Building Cayon Street, Basseterre, St. Kitts, W.I. Tel: (869) 465-1153 • Fax: (869) 465-1154 Website: www.investstkitts.kn E-mail: office@investstkitts.info

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| The Golden Book of St. Kitts - GENERAL INFORMATION

GENERAL INFORMATION HISTORY OF ST. KITTS........................................................................12 ST. KITTS ECONOMIC PROFILE...............................................................14 ST. KITTS: GEOGRAPHIC PROFILE...........................................................16 WHY INVEST IN ST. KITTS....................................................................18 CONTACTS.......................................................................................20

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| The Golden Book of St. Kitts - GENERAL INFORMATION

ST. KITTS HISTORY St. Kitts was originally inhabited by the Arawak and Carib tribes; the prehistoric hunter-gatherers who roamed the archipelago for centuries until the arrival of Christopher Columbus in 1493. The Caribs aptly called the island Liamuiga, meaning fertile island because of its soft volcanic soil. Nonetheless, it was Christopher Columbus who named the island St. Kitts, after his favorite Saint.

The first Non-Spanish settlement in the Caribbean occurred in St. Kitts, thus making it the Mother Colony of the West Indies and the launching pad for British and French expansion and domination in the Western Hemisphere. In 1624, an English Captain, Thomas Warner settled on St. Kitts because of its strategic central location for expansion, fertile soil, abundant fresh water, large salt deposits and a hospitable native population. Then, in 1625 Thomas Warner allowed an embattled French Captain, Pierre D’Esnambuc, to settle on the island, thus making St. Kitts the site of the first permanent British and French settlements in the New World.

Consequently, St. Kitts became the battleground for many conflicts as the European powers fought for control of the island. The Indigenous Carib people were eventually wiped out in an ambush at Bloody Point, leaving the British and the French in a series of ferocious back and forth struggles for control of

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| The Golden Book of St. Kitts - GENERAL INFORMATION

ST. KITTS HISTORY the island until 1783, when the French ceded the

transplanted in the middle of a vibrant twenty

island to the British in the Treaty of Versailles.

first century Caribbean, with its baroque Georgian architecture and centuries old landmarks. The

St. Kitts’ long historical past, dominated by slavery

City’s rich cultural heritage remains frozen in time;

and colonialism has been the incubator for the

from the imposing tower of the St. Georges Anglican

resilience and fortitude of its people. The cultivation

Church, originally named Notre Dame by the French

of cane sugar spanned over three hundred and fifty

in 1670, to the enchanting garden of Independence

years, until, the removal of trade preferences

Square built in 1790 as a slave market.

and un-competitive production costs forced The Government to close the industry in 2005. The

During the Colonial era, St. Kitts claimed the title

sugarcane covered landscapes punctuated with

“The Pearl of the Caribbean” because of its riches

centuries-old former sugar plantations tell a story

and, the important role it played in the expansion

a foregone era.

of the British Empire; a title many would argue still holds true today as it engage the future in a world

Basseterre, the capital city, to this day resembles a

seventeenth

century

European

of increasing globalization.

metropolis

GENERAL INFORMATION - The Golden Book of St. Kitts

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ST. KITTS ECONOMIC PROFILE Currency

Quick Facts

The currency used in St. Kitts is the Eastern Caribbean

Capital of Country: Basseterre

the United States of America (USD) since July 1976.

Population: 46,398 (2013 Census) Official Language: English GDP: US$550.62 Million (2013 est.)

Inflation: 0.8 % (2013 est.)

GDP per Capita: US$11,862 (2013 est.)

Major Exports: Electronic Components: Switches/Dimmers, Transformers Major Imports: Petroleum, Cement, Flour Key Productive Sectors: Construction, Tourism, Real Estate Services, Financial Services Major Trading Partners: United States, United Kingdom, Trinidad Government (type): Parliamentary Democracy and a Commonwealth Realm Governor-General: Yes Prime Minister: Yes Opposition Leader: Yes

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| The Golden Book of St. Kitts - GENERAL INFORMATION

Dollar (XCD), which is fixed at XCD2.70 per dollar of

The Eastern Caribbean Currency is shared by eight states

throughout

the

Eastern

Caribbean

and

controlled by the Eastern Caribbean Central Bank ECCB) headquartered in St. Kitts. These states include Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines.

The US dollar is generally accepted in businesses throughout the island, as are all major credit cards.

Banks St. Kitts Nevis Anguilla National Bank Central Street, Basseterre Tel.:................................................. 465-2204 Fax:................................................. 465-0130 Development Bank of St. Kitts & Nevis Church & Central Street, Basseterre Tel.:................................................. 465-2288 Fax:................................................. 465-4016 First Caribbean International Bank The Circus, Basseterre Tel.:................................................. 465-2449 Fax:................................................. 466-9899

ST. KITTS ECONOMIC PROFILE Royal Bank of Canada Fort St. & Bay Road, Basseterre Tel.:................................................. 465-2389 Fax:................................................. 465-2409 Royal Bank of Trinidad & Tobago Fort Street, Basseterre Tel.:................................................. 466-9900 Fax:................................................. 466-9922 Bank of Nova Scotia Fort Street, Basseterre Tel.:................................................. 465-4141 Fax:................................................. 465-8600 Banks are open Monday through Thursday, 8:00am 2:00pm and on Friday 8:00am - 4:00pm.

Each bank, with the exception of the Development Bank provides 24 hour ATM services. These ATM machines are linked to MasterCard or VISA via PLUS/Electron or Cirrus/Maestro networks so that cardholders are also able to access their account information and make cash withdrawals.

GENERAL INFORMATION - The Golden Book of St. Kitts

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ST. KITTS: GEOGRAPHIC PROFILE

16

Location

Distance by Air

St. Kitts is a 68 square mile island situated in the Eastern Caribbean at 17.25˚ North and 62.5˚ West. It is part of the twin island Federation of St. Kitts and Nevis. St. Kitts is located within the same time zone as USA East Coast (daylight savings not observed).

1 hour from San Juan, Puerto Rico 4.5 hours from Toronto, Canada 4 hours from New York, USA 8 hours from London, England 3 hours from Miami, USA 3.5 hours from Atlanta, USA

| The Golden Book of St. Kitts - GENERAL INFORMATION

ST. KITTS: GEOGRAPHIC PROFILE

Map of St. Kitts

ut

Fig Tree Pump Bay

Gh

Brimstone Hill Fortress

Phillips

Grange Bay

Mansion

C a r i b b e a n S e a

Verchild’s Molineux hut G Mountain y's Lodge e l t Ot

ut

Mt. Liamuiga

in

Sandy Point

Saddlers Black Rocks Tabernacle

Olivee’s Mountain

dw

Newton Ground

Racetrack Sandy Bay

Saint Paul's

Pars on's Gh

Saint Pauls Point

Go

White Gate

Dieppe Bay Town

Middle Island Half Way Tree

Cayon . Key’s

n yo Ca

Old Road Town

Challengers Trinity Old Road Bay Boyd's

Hermitage Bay

R

Conaree Village Conaree Bay Monkey Hill Golden Rock

Robert L. Bradshaw Half Moon Bay Int’l. Airport

Port North Frigate Bay Zante Bloody Basseterre North Friar’s Bay Point Palmetto Deep So Bay Limekiln ut Turtle Bay Water Bay h Ea Canoe Bay Harbour S. Frigate st Bay Pe Machineel Bay S. Friars Bay nin su Sandy Bank Bay White House Bay Guana Point Ballast Bay Green Point Shitten Bay Buggs Hole

la

Great Salt Pond

Mosquito Bluff Turtle Beach Cockleshell Bay Banana Bay

Major’s Sea Bridge Bay Nag's Head

Original Map: © MAP RESOURCES | Edition & Updates: © Media Publishing International N.V.

GENERAL INFORMATION - The Golden Book of St. Kitts

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WHY INVEST IN ST. KITTS ●●Stable political environment ●●One of the highest literacy rates in the region at 98% (Easily trainable labour force) ●●Modern infrastructure: Roads, Air and Sea Ports, Water and Electricity ●●Advanced Telecommunication Infrastructure ●●A stable currency fixed at 1 USD to 2.70 ECD ●●No personal income tax ●●Direct air access from key North American markets and the United Kingdom ●●The financial capital of the Eastern Caribbean – home to the Eastern Caribbean Central Bank, the Eastern Caribbean Securities Exchange, The Eastern Caribbean Regulatory Commission ●●A well regulated financial services sector ●●Investor friendly government ●●English is the official language spoken by our citizens

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| The Golden Book of St. Kitts - GENERAL INFORMATION

USEFUL ADDRESSES &

CONTACTS

Telephone Code for St. Kitts: + 1-869 Ministry of Justice and Legal Affairs Government Headquarters Church Street, Basseterre Tel.:................................................. 465-2521 Tel.:................................................. 467-1180 Tel.:................................................. 467-1013 Fax:................................................. 465-5040 Prime Minister’s Office Government Headquarters Church Street, Basseterre Tel.:................................................. 465-0299 Tel.:................................................. 467-1207 Fax:................................................. 465-1001 Ministry of Tourism Port Zante, Basseterre Tel.:................................................. 465-2521 Tel.:................................................. 467-1389 Tourism Authority:............................... 465-4040 Department of Labour New Street, Basseterre Tel.:................................................. 467-1103 Tel.:................................................. 467-1144 Fax:................................................. 466-8643 St. Kitts Electricity Company Central Street, Basseterre Tel.:................................................. 465-2000 Fax:................................................. 466-7308 Chamber of Industry and Commerce Horsford Road, Basseterre Tel.:................................................. 465-3967 Tel.:................................................. 465-2980 Fax:................................................. 465-4490 20

| The Golden Book of St. Kitts - GENERAL INFORMATION

Governor General’s Office Springfield, Basseterre Tel.:................................................. 465-2260 Tel.:................................................. 465-2315 Tel.:................................................. 466-5046 Fax:................................................. 465-2953 Ministry of Finance Church Street, Basseterre Tel.:................................................. 465-2521 Tel.:................................................. 467-1091 Comptroller of Customs:........................ 467-1077 Inland Revenue Department:................... 467-1083 Fax:................................................. 465-1532 Ministry of National Security Pelican Mall, Basseterre Tel.:................................................. 465-2521 Tel.:................................................. 467-1534 Fax:................................................. 466-4836 Ministry of Sustainable Development Bladen’s Commercial Development Basseterre Tel.:................................................. 467-1056 Fax:................................................. 466-7398 Department of Physical Planning:............. 465-2277 Social Security Office Bay Road, Basseterre Tel.:................................................. 465-2535 Tel.:................................................. 465-2536 Fax:................................................. 465-5051 Water Services Department Needsmust Tel.:................................................. 466-3070 Fax:................................................. 466-7901

INVESTMENT GUIDE THE ECONOMY.................................................................................24 INCENTIVES.....................................................................................25 TAXATION.......................................................................................26 STEPS TO ESTABLISHING A BUSINESS.......................................................28 PRIORITY SECTORS FOR INVESTMENTS.....................................................42 1. TOURISM..................................................................................42 2. FINANCIAL SERVICES...................................................................48 3. INFORMATION TECHNOLOGY..........................................................52 4. AGRICULTURE...........................................................................53 5. RENEWABLE ENERGY...................................................................56 6. INTERNATIONAL EDUCATION..........................................................57 7. LIGHT MANUFACTURING...............................................................59 ST. KITTS AND NEVIS INTERNATIONAL SHIP REGISTRY...................................60 22

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INVESTMENT GUIDE - The Golden Book of St. Kitts

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THE ECONOMY Basic Facts (2012) GDP

US $774.53

GDP per Capita

US $16,693

Inflation

0.7 percent

Major Economic Drivers

Tourism, Manufacturing of Electronic Components, Construction, Real Estate Development, International Financial services, Offshore Education

Main Trading Partners

United States, European Union, CARICOM

Since 2005, St. Kitts and Nevis (SKN) has been accelerating the transition to a modern service economy from one based on sugar production for export. The service sectors now dominate economic activity with the main economic drivers being tourism, international financial services, real estate, construction, manufacturing, wholesale and retail trading, and transport and communications. Together, these activities accounted for approximately 78.0 percent of Gross Domestic Product (GDP) over the five year period 2009 to 2013.

In 2013, the economy recovered following a four-year contraction of real output. Economic activity grew by 3.8 percent mainly on account of a strong recovery of the construction sector and the continuing improvements in the tourism sector. Stay-over visitor arrivals increased by 2.6 percent while cruise ship visitor arrivals grew by 9.0 percent. The cruise ship industry is supported by a major duty free shopping area which allows visitors to purchase high end luxury goods at competitive prices.

Export manufacturing is dominated by electronic component production mainly for the US market. Together, the tourism and manufacturing sectors account for about 20% of the labour force. The Federation of St. Kitts and Nevis also boasts of a vibrant offshore education sector with four (4) US based universities providing medical and veterinary training to about four thousand students.

Consistent with developments in the major trading partners, St. Kitts and Nevis recorded an inflation rate as low as 0.7 percent in 2013 compared to 5.3 percent in 2008.

The currency is pegged to the US dollar at a fixed exchange rate of EC$2.70 to US$1.00. The country’s banking system is regulated by the Eastern Caribbean Central Bank (ECCB).

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| The Golden Book of St. Kitts - INVESTMENT GUIDE

INCENTIVES The Government of St. Kitts has a favourable attitude towards investments that have had a positive impact on the citizens. In an effort to encourage such investments the government provides generous incentive packages.

Corporate Tax Incentives

Under the Fiscal Incentives Act, four types of enterprise qualify for tax holidays. The length of the tax holiday for the first three depends on the amount of value added in St. Kitts & Nevis. The fourth type, known as enclave industry, must produce goods exclusively for export outside the CARICOM region.

Enterprise

Value Added

Maximum Tax Holiday

Group I

50% or more

15 years

Group II

25% to 50%

12 years

Group III

10% to 25%

10 years

Enclave

Enclave

15 years

Export Allowance

St. Kitts provides companies with a further tax concession effective at the end of the tax holiday period. In effect it is a rebate of a portion of the income tax paid based on export profits as a percentage of total profits.

Rebate of Income Tax % of Total Profits

% of Total Profits

10% to 20%

25%

21% to 40%

35%

41% to 60%

45%

More than 60%

50%

Exemption from Import Duties

Full exemption from import duties on parts, raw materials, and production machinery is also available.

Hotel Aids Act

The Hotel Aids Act provides relief from customs duties on items brought into the country for use in construction, extension and equipping of a hotel of not less than 10 bedrooms. In addition, the Income Tax Act provides special tax relief benefits for hotels of more than 30 bedrooms. These hotels are exempt from income tax for 10 years.

If the hotel contains less than 30 bedrooms, gains or profits would be exempt from income tax for 5 years.

Repatriation of Profits

Companies registered in St. Kitts can repatriate all profits, dividends and import capital.

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TAXATION Personal Income Tax There is no personal income tax in St. Kitts.

Corporate Income Tax (Income Tax Act – No. 17 of 1966 as amended) Corporate tax is 35% of net profits. Qualified companies enjoy full exemption from taxes on corporate profits for a period not exceeding 15 years. Corporate tax does not apply to exempt companies or to enterprises that have been granted tax concession.

Value Added Tax (Value Added Tax Act No 3 of 2010) VAT or Value Added Tax is a tax on consumption. It is charged on the value of imports and on the value added (mark-up) on goods and services supplied by one business to another or to the final consumer.

The tax is levied on imports, transactions between businesses and the final consumer and transactions with the Government.

The standard VAT rate is 17%. A special rate of 10% is extended to hotels, restaurants and tour operators.

Withholding Tax (Income Tax Amendment Act No. 14 of 1980) Individuals and ordinary companies remitting payments to persons outside of St. Kitts must deduct 10% withholding tax from the following: • Profits

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| The Golden Book of St. Kitts - INVESTMENT GUIDE

• Administration, management expenses • Technical services fees • Accounting and audit expenses • Royalties • Non-life insurance premiums • Rent

or

head

office

Withholding tax does not apply to profits of an approved enterprise, which is enjoying benefits under the Fiscal Incentives Act. This tax does not apply to exempt trusts, limited partnerships, companies or foundations.

Alien Landholding Licence (Alien Landholding Regulation Act – CAP 102 as amended) An Alien Landholding Licence is required for: • A foreign person purchasing land in St. Kitts • A foreign person desirous of acquiring 1/3 or more of the shares in an ordinary company • A foreign person desirous of becoming a director of an ordinary company Foreign investors buying land are charged an Alien Landholding fee of 10% of the value of the land being purchased.

A foreign investor desirous of acquiring 1/3 or more of the shares in an ordinary company or becoming a director of an ordinary company is required to pay a fee of EC $250.00 per application.

Labour Force St. Kitts has a literacy rate of 98%. The country’s technical and training needs are met largely by the Clarence Fitzroy Bryant College which offers courses in plumbing, electrical engineering, air conditioning and refrigeration, masonry, carpentry, mechanical engineering, motor mechanics, typing and basic hotel skills.

There is also a healthy pool of professionals in fields such as law, medicine, business information technology and accounting. Most of our professionals have been training in the Caribbean, the United States of America, Canada and the United Kingdom where, many of them gain work experience before returning home.

Work Week The typical work week is 40 hours during the hours of 8:00am - 4:00pm or 9:00am - 5:00pm (Mondays - Fridays).

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STEPS TO

ESTABLISHING A BUSINESS The steps involved in establishing a business may vary

●● Registering with Inland Revenue as a tax payer

depending on the type of business being established.

●● Registering with the St. Christopher Social Security

Investors are asked to contact SKIPA for information concerning the specific type of business being considered.

Board as an employer ●● Applying

for

an Alien

Landholding

Licence

(foreigners owning shares in an ordinary company or foreigners serving as directors of an ordinary

Steps to establish a business include but are not limited to:

company) ●● Submitting Proposals for Review (SKIPA) ●● Applying for Incentives

●● Incorporating the company with St. Kitts Financial Services Regulatory Commission ●● Applying for a Business & Occupations Licence (Facilitated by SKIPA)

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| The Golden Book of St. Kitts - INVESTMENT GUIDE

●● Applying for Work Permits ●● Due Diligence for non-nationals

STEPS TO ESTABLISHING A BUSINESS Procedure to Acquire a Business Licence Investors wishing to acquire a business licence need to complete a business licence application form.

There are 3 main types of business that require different levels of documentation. Business type “A” only requires the completion of the business licence form. Business type “B” requires the completion of

The time frame varies depending on the nature of business. It may take 3 to 5 working days or up to a month.

Requirements: Valid Passport or Birth Certificate, Business Licence Fee and qualifications and experience specific to the nature of the business

the business licence form along with qualifications and experience. Business type “C” requires the completion of the business licence form, submission of qualifications and experience and an inspection by a government agency.

Cost to the Investor: Licence fees vary depending on the nature of business ranging from EC$100.00 to EC$2,000.00

Procedure for Registration with Inland Revenue | Time frame: 1 Day After the investor acquires a business licence, the next step would be to register with Inland Revenue in order to receive a tax payer number. This is done by either presenting the certificate of incorporation in the case of a company; completing a non-individual registration form in the case of an unincorporated entity; or by completing an individual registration form in the case of an individual.

Inland Revenue uses the information gathered to compile a database and issues the investor with a tax payer number.

Cost to the Investor: There is no charge Requirements: Business Licence Fee or Certificate of Incorporation

Procedure for Registration with Social Security | Timeframe: 1 day Investors that need to register with Social Security need to visit the Social Security Board’s Compliance Office where an officer will assist the investor with the completion of the required form. Incorporated companies register as an employer by completing an employer registration form and presenting the certificate of incorporation. If the entity is not incorporated the investor still registers their entity as an employer by completing the employer registration 30

| The Golden Book of St. Kitts - INVESTMENT GUIDE

STEPS TO ESTABLISHING A BUSINESS form and presenting valid photo identification.

Company Law: Companies Act, CAP 21.03

Cost to the Investor: There is no charge

Types of Company:

Requirements: Photo Identification or Certificate of Incorporation

The Companies Act makes provision for the formation of Ordinary Companies and Exempt Companies. Both types of company may be limited by shares or by guarantee, or by both shares and guarantee (Hybrid

Procedure for Incorporating a Company | Time frame: 24 Hours Investors who need to incorporate a company should seek the assistance of a local licenced service provider.

The local licenced service provider will be responsible for preparing company documents to be delivered to the Registrar of Companies along with the prescribed fees. Once the Registrar of Companies is satisfied with the documentation, a certificate of incorporation will be issued to the company.

Companies). The Exempt Company (which is not subject to income, capital gains or withholding taxes in St. Kitts as long as it conducts business with persons who are not resident in St. Kitts and Nevis) is the type of company preferred for international transactions.

Capital Requirements: There are no minimum capital requirements.

Costs to Incorporate, Excluding Government Fees: The cost to incorporate a company in St. Kitts varies according to the service provider. There is no specific fee set by the Government of St. Kitts.

Fees paid to the government authority to incorporate are as follows: A. In the case of a private company which is: - an ordinary company USD100 - an exempt company USD200 B. In the case of a public company which is: - an ordinary company USD300 - an exempt company USD600 Annual fees paid to authorities: Same as above Taxation Rates Applied to Companies Generally: Exempt Companies are exempted from all income, capital gains and withholding taxes in the jurisdiction, provided that they conduct business exclusively with persons who are not resident in St. Kitts and Nevis.

Ordinary Companies are subject to an income tax at the rate of 35%.

Method of Incorporation: Memorandum and Articles of Incorporation, as well

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STEPS TO ESTABLISHING A BUSINESS as a statutory statement providing the particulars

Registered Office:

outlined in the Companies Act, must be provided to the

The Registered office of a company may be at the

Registrar of Companies along with the incorporation

authorised person’s office or the company’s place of

fee, in order for a company to be incorporated.

business.

Who May Incorporate – Are Any Local Professionals

Directors and Secretary:

Required?

a. Must there be a resident director/ secretary? In

Companies or individuals authorised to carry on

a case where the company is a private ordinary

corporate business or trust business under the

both Directors and Secretary are required. In

Financial Services (Regulations) Order, CAP 21.03

instance where the Directors are foreigners, the

(Seventh Schedule) may incorporate companies on

secretaries and agent should be local.

behalf of other persons.

b. Are Corporate Directors allowed? Yes c. Is a local registered agent required? Yes

Minimum Number of Members:

d. Are Appointee directors/ secretary possible?

A minimum of one member is required for the

Alternate or appointee directors are possible. An

formation of a company.

appointee secretary is also possible.

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STEPS TO ESTABLISHING A BUSINESS Amount of Fees Payable to Appointee Directors/

Financial statements, including the disclosure of

Secretary:

profits must be filed for all public companies and for

The fees that are payable to appointee directors

all companies engaged in finance business. Private

or secretaries are determined by each individual

exempt companies, which are not engaged in finance

company. There is no particular amount specified in

business, need not file financial statements.

legislation.

Exchange Controls: Annual Meetings:

Approval for the conversion of ECD270,000 (equivalent

A public company must have an annual general

of USD100,000) into any foreign currency is required

meeting. The members of a private company may

from the Ministry of Finance. Companies holding

waive the need to hold general meetings by agreement

foreign currency accounts in St. Kitts are not affected

in writing.

by this requirement.

Annual Returns:

Is Migration of Companies Into and Out of the

All companies must file an annual return. Financial

Jurisdiction Permitted?

statements of all public companies and all companies

There are re-domiciliation provisions under the

engaged in finance business must be audited.

Companies Act, which provide for companies to migrate from jurisdictions to St. Kitts.

Can LLCs (US-style Limited Liability Companies) Be Formed? Yes

Procedure to Acquire Land | Time frame: 3 to 6 months Investors that need to acquire land should first search for and locate a property. The next step is to engage an attorney. If the investor is a local person, they would enter a purchase and sale agreement with the vendor.

The attorney would obtain a survey from either the vendor or a licenced land surveyor. The attorney then does a transfer and prepares a Certificate of Title.

Next the stamp duty should be paid at Inland Revenue and the documents should be carried to the High Court (land) Registry for registration. After registration, the attorney is notified and they collect the Certificate of Title.

If the investor is a foreigner, they would have to apply for an alien land holding licence. After the licence is acquired the attorney would do a transfer and

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STEPS TO ESTABLISHING A BUSINESS prepare a Certificate of Title. Next the stamp duty should be paid at Inland Revenue and the documents should be carried to the High Court (land) Registry for registration. After entry in the presentation book, the attorney is notified and they collect the Certificate of Title.

Requirements:

Survey

and

Purchase

and

Sale

Agreement Cost to the Investor: Stamp Duty or Transfer Tax is 12% of the cost of the land; a contribution to the Assurance Fund calculated at 0.02% of the value of the land; and a Registration Fee of EC$7.50 Legal Fees amount to approximately 1% of the value of the property. Realtor charges range from 3% to 6% of the value of the land.

Procedure for Alien Land Holding Licence | Time frame: 3 Months Investors that need an alien land holding licence may opt to use a local service provider. The local service provider will submit the application form and all necessary documents to the Ministry of Sustainable Development.

If approved, the Ministry of Sustainable Development will notify the local service provider/applicant and forward the approval letter to the Legal Department for the processing of the licence certificate. The local service provider/applicant is required to carry the licence certificate to Inland Revenue where the necessary fees are paid. The final step is to register the licence certificate at the High Court Registry (land). This qualifies the investor to purchase land in St. Kitts.

Requirements: • Copy of Statutory Statements if applicant is a company • Copy of Memorandum of association if applicant is a company • Original Police Certificate • Legal description of the land • Certified copy of passport of photo identification • Copy of Articles of Association if applicant is a company

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STEPS TO ESTABLISHING A BUSINESS • Legal Description of Company

of US$5,000.00 to the department that requests the

• Professional reference letter for the bank

background check. The documents are then delivered

• A copy of Survey plan

the Financial Services Regulatory Commission. The

• Cover Letter

Financial Services Regulatory Commission would pass

• Prescribed Fees

on the report with the summary to the department that requested the background check.

Costs to the investor: The cost of the alien land holding license is 10% of the value of the land plus the

Requirements: Notarized copy of passport

cost of the local service provider if used.

Cost to the investor: US$5,000.00

Procedure for Due Diligence | Time frame: 3 Weeks to 1 Month In cases where due diligence needs to be performed, investors are required to complete an information request form, sign a information release form and submit a notarized copy of their passport with a payment

Guide to Preparing Proposal • Description of the project including size, capital investment,

concept,

and

layout

designs

(if

applicable).

• Completed business plan • Impact on the economy with regard to number of jobs to be created, spin off opportunities for new business ventures which can emerge or spin off opportunities to attract tourism or further new investment to the island.

• Information on work permits requirements (if applicable).

• Time scale for completion of the full project and if it is to be done in phases, the time period for each phase.

• Environmental Impact Assessment (if applicable) • The licences and/or concessions required. (A comprehensive list of items that concessions are required on should be provided or specific categories of items that would be required to execute the project) If concessions from certain taxes or fees are required, these should be stated specifically as well.

• The amount of Government owned land required (if applicable).

• Background information on the principals of the business venture and their experience in the area of business that they are applying to establish.

• Information on the financing of the project • Due diligence check will need to be carried out on the developers. The due diligence cost is US$5,000.00 and is for the account of the developer.

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DEMERARA DISTILLERS Demerara Distillers (St. Kitts & Nevis) Limited

growing capacity and of these products some are for

is a very small but enterprising subsidiary of Demerara

domestic consumption and the others make up exports

Distillers of Guyana, the home of the internationally

to Europe, USA and some parts of the Caribbean.

acclaimed and award winning El Dorado Rums. The

While our production is relatively small in comparison

Company was established in 1996 with the acquisition

to other producers around the Caribbean, it is our

of Cane Spirit Rothschild previously

considerable strength that enables us

owned and operated by Baron Edmond

to target niche products that sets us

Rothschild of France and remains the

apart in a highly competitive market.

only manufacturer of liquor products in the Federation. From the inception,

St. Kitts is also historically known as

it produced the flagship product CSR

Liamuiga (coined by its indigenous

(formerly Cane Spirit Rothschild), now

people or first inhabitants, the Caribs)

Cane Spirit Ritchmont, and now boasts

that describes the rich “fertile soil�

a range of Belmont Estate Rums, (Gold,

which is embedded in a basin of

White Coconut, Golden Coconut, Blended Brandy),

naturally refined and pure tasting water that enhances

and Ivanoff Vodka as well as private labels Brinley

the profile of our fine products. This along with our

Gold and Rhum St. Kitts.

superior crafting techniques forms the heart of our products and impact the consumer experiences of

Currently, ageing, blending and bottling of our alcohol

natives and their tourist counterparts who visit and

products are done at our Plant located at Bird Rock on

share their experiences. We invite you to sip and

the beautiful isle of St. Kitts, West Indies. An estimated

enjoy our products in a responsible manner.

25,000 - 40,000 cases are bottled annually with a

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| The Golden Book of St. Kitts - INVESTMENT GUIDE

1

PRIORITY SECTORS FOR INVESTMENT

TOURISM

Invest in St. Kitts

hotels, villas and condominiums are capitalizing on the

To support the current growth of the tourism sector, the

available incentives under the Hotel Aids Act and the

Government has made lands available for development

Government’s Citizenship by Investment Programme

in areas such as the White Gate Development, Port Zante,

to invest in St. Kitts. This is evidenced in the number

Frigate Bay and the South East Peninsula. Developers of

of large scale projects currently coming on stream. In addition to projects currently under construction such as Koi Resort & Residences, Park Hyatt St. Kitts and Pelican Bay Condominiums, the first phase of the 300 acre Christophe Harbour Marina is nearing completion and is set to receive its first mega yacht in December 2014.

St. Kitts is indeed poised for greater development.

The St. Kitts Investment Promotion Agency (SKIPA) has been successful in attracting unprecedented growth in Foreign Direct Investment (FDI), in particular, in the real estate sector. St. Kitts has rapidly emerged as a major competitor in the luxury property market; the major factors contributing to the rapid pace in real estate development are the increased number of flight into the island and the Government’s Citizenship by Investment Programme. During 2014, SKIPA facilitated the approval of over $690 million United States Dollars worth of investments in hotel, villa and condominium projects.

St. Kitts’ Citizenship by Investment Programme, which has been in operation since 1984 is one of the oldest and most respected economic citizenship programme in existence. Since the introduction of the new

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GLOBALLY COMPETITIVE INVESTMENT OPPORTUNITIES Tourism

St. Kitts offers attractive incentives for investment in luxury hotels, villas, condominiums, theme parks, spas and more.

Information Technology

St. Kitts has a modern ICT infrastructure to support investment in database management, call centers, data entry, web management and mobile applications.

Light Manufacturing

St. Kitts offers incentive packages to support light manufacturing, coupled with a skilled labour force.

Renewable Energy

St. Kitts has an aggressive renewable energy policy that targets 60% renewable energy supply by 2015.

Agriculture

Availability of fertile land for commercial farming.

International Education

St. Kitts accreditation laws have enabled the establishment of education institutions of a high standard.

Financial Services

St. Kitts Captive Insurance and Foundation laws provide excellent structures for wealth preservation.

Film Industry

St. Kitts is committed to the establishment of a new international film industry, in partnership with leading Hollywood creative talent.

T: 1.869.465.1153 • F: 1.869.465.1154 • office@investstkitts.info • www.investstkitts.kn

TOURISM

Regulations in 2011 the programme has spurred a boom

contribution to the development of the Federation.

in the construction of mix-use developments, i.e.

Investors are then given the opportunity to apply

villas and condominiums across the island. Under the

for citizenship within the strict guidelines of the

programme, one may qualify for citizenship through

law and the relevant regulations.

any of three available options: (1) a non-refundable contribution of US$250,000.00 into the Sugar Industry

Developers can make an application to SKIPA for

Diversification Foundation, (2) a minimum investment

their project to be designated as an “Approved

of US$400,000.00 in a government approved real estate

Project” under the Citizenship by Investment

project, (3) any resource donated or expended which,

Programme. An investor may qualify for citizenship

brings substantial benefits to the country.

under the real-estate option of the programme, by purchasing property in a designated “Approved

The Government utilizes this programme to attract investors of good character to make a substantial 44

| The Golden Book of St. Kitts - INVESTMENT GUIDE

Project” with a value of at least US$ 400,000.

TOURISM Sector Overview

people and rich history and culture, St. Kitts entices

Tourism has been identified as a strategic sector for

many visitors to its shores. The cruise sector continues

stimulating economic growth and development on

to grow at an impressive rate, with the number of

St. Kitts. The Government, in collaboration with the

calls expected to increase to 365 and a projected rise

private sector, has been investing millions of dollars

in cruise passenger arrivals for the 2014/2015 season

to develop the tourism sector through infrastructural

to more than one million for the first time in the

development, investment in the physical plant and

island’s history. This represents a 31.5% increase over

marketing. Tourism, which has experienced significant

the 2013/2014 season and a total growth over the past

growth since the closure of the sugar industry in July

eight years of more than 500%. Investments are being

2005, and which complements other growth sectors

made by a significant number of properties to improve

such as financial services, agriculture, offshore

the physical plant and market their products more

education and information technology, is a key

vigorously, while new developments are progressing

contributor to the Gross Domestic Product, foreign

toward completion to increase available room stock

exchange earnings and employment generation in the

across the island.

Federation.

The Government has negotiated with major airlines to Renowned for its natural beauty, its warm, hospitable

ensure that there is convenient airlift from the major source markets of the United States of America, the United Kingdom, Canada and the Caribbean. American Airlines flies non-stop weekly from JFK and daily from Miami with second daily Miami flights operating Thursday through Sunday. US Airways offers non-stop weekly flights to the destination from Charlotte and British Airways provides twice-weekly flights from London’s Gatwick Airport. Moreover, Delta and Air Canada have both extended their peak season service for 2014, Delta by 6 weeks and Air Canada by 4 weeks.

Starting January 15, 2014, Seaborne launched daily flights to St. Kitts from San Juan. In addition, LIAT which plies most of the Caribbean region, another major key source market, flies daily to St. Kitts from Antigua and travelers can also connect to St. Kitts via St. Maarten on Winair.

St. Kitts has vast potential as a destination to delight its visitors, attract investors and mobilize its people to work together in charting the way forward for national development. An investment in St. Kitts is a road map to prosperity.

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TOURISM St. Kitts is currently ranked, with sister island Nevis, at #3 on a list of the Best Islands in the World, #3 on a list of the Best Caribbean Vacations, and #7 on a list of the Best Beach Honeymoon Destinations in the World, #8 on a list of Best Caribbean Honeymoons, and #8 on a list of the Best Affordable Caribbean Destinations by US News & World Report. It is also currently ranked at #7 among the Hottest Places to Travel this Winter by CNN Money based on bookings received by Virtuoso, #8 on a list of the Top 10 Best Islands for a Holiday by Places To See In Your Lifetime, #14 on a list of the 50 Travel Destinations That Will Be Huge In The Next 10 Years by Business Insider

Now” by MSNBC. The island was also named one

and one of the Top 12 Best Caribbean Vacations on

of the “Top 12 Spots that should be on your list for

FlipKey.com, the vacation rental company of leading

2012” by Caribbean Travel + Life magazine and a Top

travel website, TripAdvisor®. In 2012, St. Kitts was

Destination for 2011 by both AOL Travel and British

named one of “5 Caribbean Islands to Discover

Airways.

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2

PRIORITY SECTORS FOR INVESTMENT

FINANCIAL SERVICES

The

Financial

Services

Regulatory

Commission

Anti-Money Laundering and Countering the Financing

was established in accordance with the Financial

of Terrorism for St. Kitts and Nevis. We also perform

Services Regulatory Commission Act No. 22 of 2009

on-site inspections and off–site reviews and analysis,

to regulate the Non-Banking Financial Sector, and as

to ensure compliance with the provisions of various

the ultimate regulatory body for Financial Services,

legislation. Our efforts are focused on: 1. High professional standards within the Financial Services Industry, 2. Promoting industry codes of conduct, 3. Ensuring that regulated entities are compliant with the Anti-Money Laundering Regulations, and other regulations applicable to the sector.

The FSRC continues to strive in its efforts to maintain public confidence in the financial system, and to secure the appropriate degree of protection for consumers. In this regard, we are responsible for supervising Credit Unions, Money Services Business, Insurance Companies (Domestic and Captive), Investment Business, Trust and Corporate Service Providers and the Development Bank of St. Kitts and Nevis. Copies of the required legislation can be accessed from our website.

Domestic Insurance Companies – Insurance companies Act, 2009 Credit Unions – The Co-operatives Societies Act 2011 Investment

Business

–

The

Financial

Services

Regulation Order Cap.21.03 (7th Schedule) Money Services Business – The Money Services Business Act, 2008 48

| The Golden Book of St. Kitts - INVESTMENT GUIDE

FINANCIAL SERVICES Application Process for Entities

• Foundations

All applications are presented to the Financial Services

• Captive Insurance Companies

Regulatory Commission by persons licensed under the

• Non-Governmental Organizations

Financial Services Regulation Order, Seventh Schedule, of the Companies Act Cap 21.03. A list of persons so

Non-Governmental Organizations

authorized can be found on our website (www.fsrc.kn),

The

as well as copies of the various legislations pertaining

Act No.11 of 2008 has been introduced to provide

to the products we offer. The required documents

registration and legal status for local NGOs allowing

are presented to the FSRC, where they are reviewed.

them to be recognized internationally.

following

Non-Governmental

Organization

Once the review is completed, and the application is approved, the FSRC will register and deliver copies to

Priority Products for Investment

the Licensed Service Provider for collection.

Foundations, and Captive Insurance Companies, are identified as unique investment opportunities due to

Our Products Are:

the nature and viability of the products.

• Ordinary and Exempt Companies • Limited Partnerships

Foundations

• Trusts

The Foundations Act (No.8 of 2003) provides for

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FINANCIAL SERVICES the registration of Foundations in St. Kitts. On this basis, any person acting on behalf of the Founder, on delivering the Articles of a Foundation to the Registrar and on payment of the registration fee may apply to have a Foundation registered. The Founder is any person who transfers the initial Asset/Capital to the Foundation.

The Advantages of Establishing a Foundation in St. Kitts • Anyone can be a Founder to a Foundation.

• There are no capital requirements for the registration of a Foundation.

• An Exempt Foundation will be exempted from taxes.

• Registration fee is competitive i.e. only $200 US • The Registration process takes only 24 hrs.

The Advantages of Establishing a Captive Insurance Company in St. Kitts Corporations or affiliated persons may form a Captive Insurance Company for the following reasons: 1. Minimizing costs by eliminating a large percentage of traditional insurance company overheads; 2. Access to the lower-cost of reinsurance market; 3. Retaining profits that would otherwise have been paid to commercial insurance (premiums in excess of amounts repaid to cover losses); 4. Earning additional income on funds it controls by choosing lucrative financial instruments in which the company’s premiums may be invested in; 5. Reducing risk by choosing insured parties with a low risk profile; 6. Have control over the design of the company’s policies, as well as, the ability to repay losses incurred; 7. The ability to insure risks which would otherwise be uninsurable

Financial Services Regulatory Commission P.O. Box 898, Upstairs Karibhana Building Liverpool Row, Basseterre St. Kitts, East Caribbean Tel: +1 869 466 5048/467-1019 Fax: +1 869 466 5317 E-mail: skanfsd@sisterisles.kn Website: www.fsrc.kn 50

| The Golden Book of St. Kitts - INVESTMENT GUIDE

FINANCIAL SERVICES Application and Licence Fees

Costs are in United States Currency (US $)

Company Incorporation: 1. Domestic/Local/External 2. Exempt/International

$100.00 $200.00

Trust Company: 1. Domestic/Local/External 2. Exempt/International

$100.00 $200.00

Foundation Establishment: 1. Domestic/Local 2. Exempt/International

$100.00 $200.00

Limited Partnerships: 1. Domestic/Local 2. Exempt/International

$100.00 $200.00

Captive Insurance Companies: 1. Application Fee (non-refundable) 2. Annual Licence Fee: Small Group Captive Insurance Company 3. Annual Licence Fee: Captive Insurance Company other than Small Group Captive

$200.00 $800.00 $3,000.00

International Deposit Taking Institution: 1. Application Fee: (non- refundable) 2. Annual Licence Fee (restricted) 3. Annual Licence Fee: (unrestricted)

$1,000.00 $4,000.00 $8,000.00

Investment Business: 1. Application Fee (non-refundable) 2. Annual Licence Fee (restricted) 3. Annual Licence Fee (unrestricted)

$800.00 $3,000.00 $6,000.00

International Insurance Manager: 1. Application Fee (non-refundable) 2. Annual Licence Fee

$400.00 $3,000.00

Trust Service Provider: 1. Application Fee (non-refundable) 2. Annual Licence Fee (restricted) 3. Annual Licence Fee

$600.00 $2,000.00 $4,000.00

Corporate Service Provider: 1. Application Fee (non-refundable) 2. Annual Licence Fee

$400.00 $2,000.00

Money Services Business: 1. Application Fee 2. Annual Licence Fee

$370.00 $1,852.00

Domestic Insurance Business: 1. Application Fee (non-refundable) 2. Annual Licence Fee - Local Insurance Company (Long –term Insurance Business) 3. Annual Licence Fee - Local Insurance Company (General Insurance Business) 4. Annual Licence Fee -Foreign Insurance Company (Long term Insurance Business) 5. Annual Licence Fee -Foreign Insurance Company (General Insurance Business)

$556.00 $926.00 $926.00 $1,852.00 $1,852.00

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3

PRIORITY SECTORS FOR INVESTMENT

INFORMATION TECHNOLOGY The Ministry of Information and Technology has embarked on a strategic path to ensure that St Kitts remains an enabling environment for IT-based national development and investments in the Information and Communications Technology industry. The 2015 -2020 national ICT planning process envisions the health and safety of IT-empowered

knowledge citizens as priority for the sustaining of strong economic and social growth and development.

Our Ict-Enabled National Development Focal Areas: • ICT in Health and well being • ICT for National Security • ICT-infused Education • SMART farming • Connected Citizens The Ministry’s focus on nurturing IT development has fuelled engagements that provide modern infrastructure (Three subsea fibre optic Internet cables, 4G mobile communications) through 3 major telecommunications providers, friendly import duties on IT equipment and internationally and regionally harmonized Information Society IT legislation.

Our Environment and Products • Modern Communications Infrastructure • Competitive Internet and Mobile Communications market • Internally and regionally harmonized IT Society legislation • Call Centers • IT Administration services • Web site and application development services • Credit card transactions processing services

Strategic Advantages • English speaking highly literate workforce • Largely computer literate workforce • High Internet and mobile communications penetration rates • Increasingly competitive communications costs

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| The Golden Book of St. Kitts - INVESTMENT GUIDE

4

PRIORITY SECTORS FOR INVESTMENT

AGRICULTURE The Agriculture sector in St Kitts-Nevis holds great

to development in the agricultural sector is intended to

potential for the creation of wealth for the potential

reduce the country’s food importation bill through local

investor. As part of its vision for food security in response

production. Tremendous opportunities for commercial

to possible global threats to food security the Government

farming are available as local demands continue to

of St Kitts-Nevis established an Agricultural Development

outpace local supply.

Strategy which also serves to guide the potential investor.

The increasing demand for food staples spurred by the

In addition, export opportunities abound. Markets in

increasing world population and the adverse effects

adjacent islands such as Anguilla and St. Maarten, the

on the price of food by factors such as fluctuating oil

US and British Virgin Islands as well as the mainland USA

prices, the occurrence of extreme weather conditions in

create viable and lucrative opportunities for the export

key export markets and others, make investment in the

of fresh and processed products for the export-oriented

agricultural sector a worthwhile venture. The road map

investor.

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AGRICULTURE

The Government has employed a multidisciplinary

• Packaging Services

approach to its Agricultural Development Strategy,

• Storage Facilities

encompassing vital components such as incentives

• Inter-Regional Transport Services

packages, increase availability of land, investment in

• Commercial Farming

agro-processing technology, greenhouse production and

• Agro-processing

increased linkages with the tourism sector.

Remember Our strategic advantages in agriculture are The hotel room stock is steadily increasing with

also Your strategic advantages in Agriculture.

additional capacity from anticipated 5 star facilities

• Enduring tradition of agriculture

such as Kittitian Hill, the Pirate’s Nest, the Prime Hotel,

• Availability of fertile land, previously used for sugar

the Imperial Bay, Koi Resort & Residences and the Park Hyatt.

The Agro-processing facility has developed more than

cane cultivation • Import duty and port fees concessions on equipment and fertilizers

two dozen processed products that have been well-

• Long established technical assistance programs

received by locals and guests alike and 2015 promises

through CARDI, WHO, IICA, Republic of China on

further upgrade to the facility to a strictly commercial

Taiwan and more

entity.

• Availability of large work force formerly employed in the sugar industry

So here are some specific agricultural opportunities for you the potential investor: 54

| The Golden Book of St. Kitts - INVESTMENT GUIDE

Happy Food Secured Investing!!!

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5

PRIORITY SECTORS FOR INVESTMENT

RENEWABLE ENERGY

According to the National Energy Policy, St. Kitts’ vision

wind, hydro and geothermal are deemed the most

is to become the smallest green nation in the Western

appropriate mid to long-term alternative sources to

Hemisphere – with a sustainable energy sector, where

replace imported petroleum product for electricity

reliable, renewable, clean and affordable energy

generation.

services are provided to all its citizens. The island has embarked on a very ambitious goal to achieve

• Potential for electricity interconnection between St. Kitts and Nevis for geothermal.

60 % renewable energy consumption by the year

• The National Energy Policy encourages public-

2015. St. Kitts requires a holistic approach to address

private partnership in the development, financing

challenges in the energy sector and to transition to

and management of renewable energy projects.

a more sustainable energy sector. Such challenges

• Increasingly high cost for imported fuel for energy

include consumption patterns, types of fuel used,

production.

infrastructure and management and the types of energy carriers.

Incentives Exemption from Import Duty and Customs Service

Detailed Description of Energy Sector The transition to a more sustainable energy sector is currently driven by high electricity rates, high

Charge on the following: • Solar PV panels and ancillary equipment for generating electricity

transportation fuel prices and global climate change

• Hydrogen fuel cells and ancillary equipment

awareness and concerns. The aforementioned factors

• Wind Turbines and ancillary equipment

impacts businesses and citizens alike and as such

• Energy saving bulbs including LED Bulbs

the need for energy efficiency and conservation

• Solar water heaters and tanks

along with increase investments in renewable energy

• Solar AC units

technologies. The National Energy Policy has created

• And other approved related equipment

the framework that allows St. Kitts to transition from a primarily fossil fuel source of energy to alternative

Types of Investment Required

renewable energy sources such as wind, solar,

• 2-5 MW Waste to Energy (WTE) Plant

geothermal, hydro and waste to energy (WTE).

• 2-5 MW Solar Energy Project • 2-5 MW Wind Energy

Competitive Advantages • Renewable energy sources in the form of solar, 56

| The Golden Book of St. Kitts - INVESTMENT GUIDE

• 10 MW Geothermal Energy • LED and Solar Street Lights

6

PRIORITY SECTORS FOR INVESTMENT

INTERNATIONAL EDUCATION The St. Kitts and Nevis Accreditation Board is also

and national standards of educational quality. By

tasked to accredit tertiary-level education institutions

judging compliance to the Federation accreditation

and programmes that lead to MB.BS/M.D. degrees.

regulations, the public and enrolled students would be

It is essential that schools located in the Federation

assured of the institution’s credibility and reliability.

that offer these programs adhere to international

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INTERNATIONAL EDUCATION

To achieve and maintain accreditation, medical education programmes must meet the standards listed on this website. Medical education programmes located within the Federation must provide documentation on the following with their application: 1. The Institutional Setting 2. The Students 3. Educational Programmes 4. The Faculty 5. Educational Resources 6. Internships 58

| The Golden Book of St. Kitts - INVESTMENT GUIDE

These requirements have been compiled using the regionally accepted standards in use by the Caribbean Accreditation Authority for Education in Medicine(CAAM), the standards of the General Medical Council of Great Britain (GMC), as well as those of the Liaison Committee on Medical Education (LCME) of the United States and Canada and the New York State Education Department (NYSED).

7

PRIORITY SECTORS FOR INVESTMENT

LIGHT MANUFACTURING The manufacturing sector is a major pillar of the St. Kitts economy. It has been a consistent contributor to the domestic economy and the overall development of St. Kitts and Nevi over the last 30 years. The sector contributes approximately 8 -10 % of Gross Domestic Product (GDP) and sustains over 2000 jobs or 8.54 % of the country’s workforce. St. Kitts is the leading exporter in the Organization of Eastern Caribbean States (OECS).

St. Kitts possesses considerable strengths that make the island attractive for manufacturing. These include: • Stable political, social, economical and business environment • Business incentives and fiscal exemptions for local and foreign investors

• Low cost producers relative to the USA and other developed countries • Free Trade Agreements and international initiatives to facilitate free movement of goods, such as the Caribbean Single Market and Economy (CSME) and the Caribbean Basin Initiative • Trainable and experienced manufacturing human resource base • Adequate infrastructure such as airports, sea ports, roads, telecommunication services, utilities and financial services • Proximity to the USA, South America, Central America and Caribbean Markets • Diverse air and sea transportation services

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ST. KITTS AND NEVIS

INTERNATIONAL SHIP REGISTRY Since the closure of the sugar industry in 2005,

of the St. Kitts and Nevis International Ship Registry.

attempts by government to transform the economy of

Established under the Department of Maritime Affairs

St. Kitts and Nevis to a more service base economy has

primarily to provide ship owners around the globe

resulted in creation of several economic sub-sectors.

with a high quality service, the ship registry of St.

Among such sector, is the creation and establishment

Kitts and Nevis is holding its own and forging ahead especially when compared to other registries such Panama, Liberia and the Bahamas ship registry. In fact, through the ship registry, St. Kitts and Nevis is rapidly becoming one of leading flags under which ship owners can be assured that all their administrative and shipping needs will be fulfilled.

The St. Kitts and Nevis ship registry has no restrictions on ownership of St. Kitts and Nevis ships. It is available and accessible to local and foreign corporations and individuals and any type of ship, including yachts, non-propelled barges, rigs and ships under bareboat charter.

To facilitate speedy registration, a worldwide network of offices, staffed by professional and experience Maritime Registrars and Special Agents to issue pertinent documentation when authorized by head office in the UK. These officers are empowered to accept application documents, deal with questions and procedural aspects of ship and seafarer registration ‘face-to-face’ as the local contact for a ship-owners so avoiding any delays, especially those caused by time zones. The Operational Head Office controls

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ST. KITTS AND NEVIS INTERNATIONAL SHIP REGISTRY the issuing of all Ship and Seafarer documentation.

A network of Flag State Inspectors carryout Annual

Located in the suburbs of London, St. Kitts and Nevis

Flag State Inspections and occasional surveys.

International Ship Registry spans the office opening hours of most major shipping and business centres.

Pleasure and Commercial Yachts may be registered.

Ongoing investment in IT and computer facilities allows

St. Kitts and Nevis International Ship Registry provides

a rapid analysis of applications for registration, while

for the use of a variety of industry standard Yacht

maintaining adequate controls for the identification

Codes for technical regulation, giving flexibility to

of owners, managers and seaworthiness of ships in

the yacht owner. Pleasure yachts may be temporarily

accordance with National Legislation, International

registered as operating in a Commercial mode.

Maritime

and

Ships registered in St. Kitts & Nevis may be

accepted international practice. St. Kitts & Nevis

mortgaged. Supporting legislation follows the general

is a signatory to all the major IMO Conventions and

legal principal of English Law on ship mortgages.

participates actively in the evolutions of IMO.

The mortgager mortgages the ship by execution of a

Organization

(IMO)

Conventions

simple mortgage deed, registering this at the office of Recognized Organizations or Class Societies are

the International Registrar of Shipping and Seamen.

authorized to carry out statutory surveys and issue

By prior arrangements, mortgage documents can be

statutory certification on behalf of St. Kitts and Nevis.

presented at the office of a Maritime Registrar and the

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ST. KITTS AND NEVIS INTERNATIONAL SHIP REGISTRY mortgage registered. The mortgagee may enforce the mortgage by taking possession of the ship and selling it by private sale or at auction.

• Registration under ownership, bareboat charter and for ships under construction • Knowledgeable and experienced staff in both Head Office and in the offices of our Maritime Registrars

Ships may be bareboat chartered both into and out of St. Kitts & Nevis for either long or short periods. St. Kitts and Nevis Ship Registry is a member of MAIIF - the

to assist with enquires • Merchant Shipping legislation based on British and IMO Models

Maritime Accident Investigators International Forum.

A competitive fee structure and fast- turnaround of applications to assist ship owners in today’s world of commercial pressures and instant communication is one of the greatest hallmarks of the St. Kitts and Nevis International Ship Registry.

St. Kitts and Nevis Ship Registry management system

CONTACTS

is accredited to ISO 9001 by American Bureau of

International Registrar of Shipping & Seamen – Mr. Nigel E. Smith St. Kitts and Nevis International Ship Registry West Wing, York House 48-50 Western Road Romford, RM1 3LP United Kingdom Tel: +44 (0)1708 380400 Fax: +44 (0)1708 380401 E-mail: mail@stkittsnevisregistry.net

Shipping (ABS).

We welcome your applications for registration and further information can be obtained at: www.stkittsnevisregistry.net

Why Choose St Kitts & Nevis Ship Registry?

• Worldwide Network of Maritime Registrars and other registration offices for local contact by Owners • No restriction on ownership of vessel – St. Kitts & Nevis company not required, though using one will result in a lower registration fee • No restriction on nationality of Master, Officers and Crew onboard • Central control of registration and issuing of documents • Rapid turnaround of enquiries and applications • Competitive fee structure – no ‘hidden extras’ • Convenient location of Head Office for World Wide time zones • Individuals or corporate bodies can be owners or BB charterers of a ship • Recourse to a well established legal system based on English Law 62

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Department of Maritime Affairs Ministry of Tourism & International Transport Upstairs Building # 3-4, PO Box 878, Port Zante Basseterre, St Kitts Tel: +1 869 467 1391/2 Direct: + 1 869 467 1385 Fax: +1 869 465 9475 E-mail: maritimeaffairs@yahoo.com Technical & Survey Office - Mr Alan Crass Maritime & Corporate Consultancy Services Ltd. PO Box 2009 Basseterre, St. Kitts Tel: +1 869 466 3330 Fax: +1 869 466 8818 Mobile: +1 869 669 0382 E-mail: technical@maccs-skn.com

ADVERTISER’S INDEX

AAA REAL ESTATE......................................... 19

GLOBAL SHIPPING........................................ 61

ACE DESIGN CONSULTANTS............................. 27

GOLDEN ROCK COMMERCIAL PARK..................... 29

ADMIRAL’S (2008) LTD................................... 33

HILLSBORO SUNSET SUITES............................. 45

ALPHA & OMEGA SECURITY SOLUTIONS LTD.......... 30

HOBSON ENTERPRISES LTD.............................. 16

ASHBURRY’S DUTY FREE................................. 15

ISLAND PURIFIED WATER................................ 38

BANK OF NEVIS INTERNATIONAL LTD.................. 49

JACK & ASSOCIATES REAL ESTATE........................8

BIRD ROCK BEACH HOTEL............................... 45

KITTITIAN HILL REAL ESTATE............................ 35

B. KASSAB & ASSOCIATED REALTORS................... 11

LIAMUIGA SECURITY COMPANY......................... 52

BLUE WATER SAFARIS.................................... 23

MARITIME & CORPORATE CONSULTANCY SERVICES.. 61

BRIMSTONE HILL FORTRESS............................. 45

PELICAN BAY DEVELOPMENT............................ 37

BUILDERS PARADISE...................................... 32

RAM’S ...................................................... 55

B WILLIAMS PROPERTY MANAGEMENT SERVICES..... 27

RANGE DEVELOPMENTS...................... BACK COVER

CARIBBEAN CREDIT CARD CORP. LTD.................. 48

ROSS UNIVERSITY......................................... 57

CARIBELLE BATIK......................................... 21

SHIPWRECK BEACH BAR & GRILL....................... 46

CFA INTERNATIONAL SERVICES INC..................... 47

SKIPA....................................................... 43

CHRISTOPHE HARBOUR....................................3

SL SERVICES LTD.......................................... 50

COMPLETE LAND SERVICES.............................. 34

ST. KITTS & NEVIS INT’L. SHIP REGISTRY............. 60

DEMERARA DISTILLERS.......................... 39, 40, 41

SUNDANCE RIDGE........................................ 31

D.J.C.F. ARCHITECTURE................................. 36

TAMARIND COVE MARINA DEVELOPMENT LTD...... 5, 7

EDWIN GLASFORD ASSOCIATES...........................9

TREVOR FRAITES & ASSOCIATES........................ 42

EYECARE EXPRESS..........................................9

TROPICAL SHIPPING...................................... 11

FORUM DECO.............................................. 21

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