News: Registration of Company in Saint Vincent and the Grenadines

How to register company in Saint Vincent and the Grenadines

The island state of Saint Vincent and the Grenadines is independent and sovereign entity in the Windward Islands archipelago. The country is situated between the Caribbean Sea and the Atlantic Ocean. In total, there are 32 islands in the state structure. The eastern neighbor of Saint Vincent and the Grenadines is Barbados, the northern one - Saint Lucia, the southern - Trinidad and Tobago, as well as Grenada and Venezuela.

The capital of the country is Kingstown. Saint Vincent and the Grenadines is English-speaking state.

The monetary unit of the country is the Eastern Caribbean Dollar.

The climate is humid and tropical. During the year, temperature fluctuations are almost not felt. The optimal time for tourists is the period from January to May. Some islands of the state are privately held.

In 1996, Saint Vincent and the Grenadines adopted the package of 6 legislative acts, making the country one of the most perfect tax-exempt jurisdictions in the world. The laws were elaborated with the direct participation of leading British and American lawyers. Thus, registration of offshore company in Saint Vincent and the Grenadines is top priority for many entrepreneurs to date.

Why is it cost-efficient to register or buy offshore company in Saint Vincent and the Grenadines?

• The company obtains tax-exempt status;
• The cost of annual maintenance is insignificant;
• The name of the company can include designations applicable when registering business in the USA, Spain, France, Germany, Italy, the Netherlands, and the UK;
• State support of offshore business is efficient and permanent;
• It is necessary to register only formal document, which is the Memorandum of Association;
• Saint Vincent and the Grenadines is party to the International Maritime Convention.

Offshore company in Saint Vincent and the Grenadines is used by the business for investing and minimizing taxation.

Forms of doing business in Saint Vincent and the Grenadines

• The most popular form of offshore business in Saint Vincent and the Grenadines is the exempt (tax-exempt) company (IBC). It is based upon the Law "On International Business Companies".
• Offshore banks can also operate in the territory of the jurisdiction. Special license is required for such activity. There are two classes of such licenses: Class I, Class II.

- The Class I license allows providing services only for non-resident.

- If there is the Class II license, it is possible to provide services for one particular group of clients.

The issue of obtaining licenses is pending for about three months.

Any bank that operating in the territory of the country should have at least one representative office in Saint Vincent and the Grenadines.

• Marine vessels are being quite successfully registered in Saint Vincent and the Grenadines. The basis for the foregoing is the fact that the state participates in one of the maritime conventions. It is possible to register the vessel in Saint Vincent and the Grenadines and obtain right to sail under the flag of the country without extra costs and problems.
• Trust institution are also being registered in Saint Vincent and the Grenadines. The basis for the abovementioned is the Law “On International Trusts”. Reliable and absolutely legitimate protection against claims of creditors is guaranteed to such institutions.
• Insurance companies are also being registered in the territory of the jurisdiction.

Registration of offshore company in Saint Vincent and the Grenadines: Peculiarities

• There are no requirements for the citizenship of the founders;
• There are minimum requirements for the number of shareholders and directors. There should be one director and one shareholder;
• Participants can also be citizens of different countries;
• The company shall have registered office in Saint Vincent and the Grenadines. But at the same time, there are no requirements for storing any documentation of the company in the office;
• It is necessary to have registration agent in the territory of Saint Vincent and the Grenadines;
• The use of the services of nominee shareholders and directors is permitted;
• Any types of shares (exept bearer shares) are allowed to be issued, there is no need to compile preliminary list of shareholders;
• Time and place of holding meetings are selected at the discretion of the directors and shareholders;
• The company name can be prepared in any language and can not be identical or similar to the already existing one;
• Using such words as Association, Chamber, Charter, Group, International, Municipal, Royal, Bank, Fund and miscellaneous in the company name is possible with the permission obtained in the Register of Companies;
• Information regarding directors and shareholders of the company is confidential. Only information about the authorized capital of the company and its legal address is available for third parties.

Starting from January 1, 2019, all companies that will be registered from this date will have to:

1. Accept the name change from International Business Company (IBC) to Business Company (BC) until March 31, 2019;
2. All persons who will claim the director and secretary of the company are required to submit applications for approval of candidates;
3. BC companies are required to complete annual reports (only large companies);
4. Business Companies can no longer issue bearer shares;
5. For BC companies, direct tax exemption is removed;
6. Local residents have the right to register a BC company;
7. Custom and other duties are retained.

Also, the companies in Saint Vincent and the Grenadines at registration require:

• New Forms to be filed for the incorporation of BCs as of January 1“, 2019;
• Obtain at registration Certificate of Incorporation and Certificate of Exemption from Import Duties;
• Certificate of Taxing Exemption will NOT be issued.

Taxes in Saint Vincent and the Grenadines

• After obtaining the certificate, IBC (or BC) receives full tax exemption for 25 years. In the process of the company's functioning, the founders can make amendments in the content of the Memorandum of Association, including change of the name of the company.
• One-time registration fee for offshore company in Saint Vincent and the Grenadines equals to $ 225. Each subsequent year, the fee in the amount of $ 100 is levied. The exception is insurance companies, for which, on the contrary, the amount of the fee increases to $ 500.

The companies formed in 2019 will be subject of taxation in SVG and would need to file a tax return. The current local corporate rate is 30%.  However, SVG will adopt a territorial tax regime before the end of Q1 2019 regime meaning that BC's will only be taxed on income earned in SVG and NOT worldwide. For IBCs formed before 2019, these entities may be required to file tax returns in the future but this will not be ready for at least another 2 years according to the FSA.

Bookkeeping in Saint Vincent and the Grenadines

The company in Saint Vincent and the Grenadines does not provide financial and accounting statements. There are also no requirements for auditing of any enterprise.

If registration of offshore company in Saint Vincent and the Grenadines is Your top priority for today, we are ready to register company in Saint Vincent and the Grenadines quickly and in a competent manner. You can also buy ready-made company in Saint Vincent and the Grenadines. Start secure and profitable international business with us!