One of the offshore jurisdictions in the Caribbean is Saint Vincent and the Grenadines. This independent island country offers relatively straightforward conditions for incorporating an international company and setting up a business for non-residents.
Saint Vincent and the Grenadines attracts entrepreneurs with a relatively simple company registration process, affordable ongoing maintenance costs, and flexible corporate requirements. Another factor that may be relevant to international businesses is the absence of foreign exchange controls for transactions below US$100,000.
So, what should entrepreneurs expect when they plan to register a company in Saint Vincent and the Grenadines? Let’s take a closer look at the available legal structures, tax rules, reporting requirements, documents, and incorporation process.
Which Legal Structure Should You Choose?
Until 2018, Saint Vincent and the Grenadines offered a preferential tax regime for foreign companies. However, in December 2018, the government introduced amendments to the International Business Companies legislation.
These changes also affected the jurisdiction’s offshore corporate sector:
- Tax exemptions were abolished for companies incorporated after January 2019. Businesses are generally subject to a 30% corporate income tax, regardless of where their profits are generated. An exception applies to companies operating as an LLC (Limited Liability Company).
- The International Business Company (IBC) structure was discontinued. This was previously one of the most common structures used by non-residents. It was replaced by the Business Company (BC), which may be less attractive for certain international business activities.
As a result, an LLC (Limited Liability Company) can be a suitable option for entrepreneurs looking to incorporate a company in Saint Vincent and the Grenadines.
An LLC may provide an opportunity to avoid the 30% corporate tax, provided that the company can demonstrate that it is already a tax resident of another country. In practice, this means establishing that the company conducts its business activities and generates its profits outside Saint Vincent and the Grenadines.
Other potential advantages of an LLC include greater privacy in relation to ownership and management information. Information about shareholders and directors does not have to be submitted to a public register in the same way as in many other jurisdictions. In addition, shareholders' meetings do not have to take place in Saint Vincent and the Grenadines and can be held anywhere in the world.
Taxes and Accounting: What You Need to Know
As mentioned above, the standard corporate tax rate is 30%, but Saint Vincent and the Grenadines has several other features worth considering when planning an international business structure.
There is generally no withholding tax on dividends, and capital gains are not subject to tax. The standard VAT rate is 16%. A reduced rate of 11% applies to certain goods and services provided by hotels, while some products and services may be exempt from VAT.
Annual Reporting Requirements
If you choose to register an LLC in Saint Vincent and the Grenadines, the company is not required to file annual financial statements in the same way as a Business Company.
Business Companies, however, are generally required to prepare annual financial statements if either of the following thresholds applies:
- the company's nominal gross revenue for the year is US$4 million or more; or
- the company's total assets exceed US$2 million.
If both gross revenue and total assets remain below these thresholds, the company may instead be required to submit an annual Declaration of Solvency.
Business Companies must also maintain financial records that clearly demonstrate the basis and purpose of individual transactions. Financial records should generally be retained for at least 7 years.
Corporate documents such as meeting minutes and resolutions should generally be retained for 10 years.
How to Register a Company in Saint Vincent and the Grenadines
As discussed above, an LLC is a popular corporate structure for non-residents seeking to establish a business in Saint Vincent and the Grenadines.
Below, we focus specifically on the requirements and documentation for setting up a Limited Liability Company (LLC).
Main Requirements for an LLC
The basic requirements for Saint Vincent and the Grenadines company formation include:
- A registered office/address in the jurisdiction.
- A unique company name. There is no practical need to limit yourself to a single option: you can submit several names in order of preference, and the first available name can be used for incorporation.
- At least one director and one shareholder. These roles may be held by the same individual or legal entity. The director and shareholder do not have to be residents of Saint Vincent and the Grenadines.
These are the principal requirements for establishing an LLC. There is generally no fixed minimum share capital requirement, and the capital can be denominated in a currency of your choice. A nominal capital amount, such as US$1, can be sufficient.
Appointing a company secretary is also generally optional.
Documents Required to Register an LLC
The exact documents required to incorporate a company in Saint Vincent and the Grenadines depend partly on whether the shareholder is an individual or a legal entity.
If the Shareholder Is an Individual
The following documents may be required:
- A color scan of the beneficial owner's passport.
- Proof of residential address of the ultimate beneficial owner, such as a utility bill or bank statement. The document should generally be issued within the previous three months, translated into English where necessary, and notarized.
- A bank reference letter for the beneficial owner.
- A brief description of the company's business activities, usually around 5–10 sentences outlining the nature and purpose of the business.
If the Shareholder Is a Legal Entity
In addition to the documents listed above, the corporate shareholder will generally need to provide a set of corporate documents. The exact list depends on the jurisdiction where the shareholder company is registered and its corporate structure.
How Long Does Company Registration Take?
Once the preparatory stage has been completed, all requirements have been met, and the required documents have been collected, the company incorporation process in Saint Vincent and the Grenadines can take no more than seven business days.
The actual timeframe may depend on the completeness of the documents, compliance checks, and the specific circumstances of the applicant.
Offshore Company Formation with Beforis
If you are looking to register a company in Saint Vincent and the Grenadines, Beforis can provide a comprehensive company formation service and assist with the incorporation process from start to finish.
Our services include:
- Assistance with establishing a legal entity and full support throughout the company registration process.
- Checking an unlimited number of proposed company names for availability and uniqueness.
- Providing a registered office/address for one year.
- Handling the payment of applicable registration and government fees.
- Preparing and collecting the company's corporate documents, including the Certificate of Incorporation, constitutional documents, share ownership certificate, and other relevant paperwork.
We also provide nominee services, assist with opening corporate bank accounts, and support international business transactions.
If you need assistance with company registration in Saint Vincent and the Grenadines, contact Beforis for a free consultation. We can help you understand the available company structures, incorporation requirements, required documents, and the steps involved in setting up your business in SVG.
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