St. Vincent and the Grenadines
Business Company (Company limited by shares)
Saint Vincent and The Grenadines is an independent and politically stable jurisdiction.
Business Companies in St. Vincent have one of the simplest and straightforward registration procedure and one of the lowest incorporation and maintenance costs worldwide.
Requirements for a BC are minimal. No minimum paid-up capital required, the company may be incorporated with a sole shareholder and a sole director and annual general meetings are not mandatory.
Appointment of secretary is optional. It can be administered from St. Vincent or from any part of the world, and its books and records may be kept outside the territory.
BCs are allowed to issue registered shares, with or without par value, with voting or non-voting rights.
Saint Vincent and The Grenadines BCs are commonly used for asset protection, Forex brokers, international trade, as well as for yacht and vessel registration.
Legal
Country code – VC
Legal Basis – Common law
Legal framework – International Business Companies (Amendment and Consolidation) Act
Company form – Business Company (BC) (Company limited by shares)
Liability - The liability of the shareholders for the company is limited to the unpaid amount of their respective shareholdings.
Economic Substance - Under the International Tax Co-operation (Economic Substance) Act, companies conducting relevant activities must meet substance requirements.
'Relevant activities' include:
- banking i.e. banking business
- insurance i.e. insurer
- finance and leasing i.e. business of providing financing or leasing of assets
- fund management i.e. management of collective investment schemes
- distribution and service center business i.e. reselling goods to affiliated companies or providing services to affiliated companies. Affiliated company is defined as a company which is part of the same group (e.g. parent-subsidiary, sister entity with common parent company, etc).
- headquartering i.e. providing management services to affiliated companies
- intellectual-property business i.e. holding and exploiting IP assets, generating identifiable revenue from such assets. Please note that the provision of services for developing IP assets or holding or using IP assets for ordinary commercial or service business is not considered an intellectual property business. IP businesses are those that generate separate and identifiable revenue from IP assets (e.g. patent licensing)
- shipping i.e. transportation by sea of persons, animals, goods or mail, the renting or chartering of ships for such transportation, management of ship crew, sale of travel tickets, the use, maintenance or rental of containers, including trailers and other vehicles or equipment for the transport of containers, used for the transport of anything by sea
- and pure equity holding company, companies that only own equity interests in other companies, and only earn dividends and capital gains.
Companies that carry out relevant activities must satisfy the economic substance test – they must:
- conduct its core income-generating activities in St Vincent and the Grenadines (which are defined in the law)
- be directed and managed from within St Vincent and the Grenadines .
- have an adequate amount of operating expenditures incurred in or from within St Vincent and the Grenadines
- have an adequate physical presence (including maintaining a place of business or plant, property, and equipment) in St Vincent and the Grenadines
- have an adequate number of full-time employees or other personnel with appropriate qualifications in St Vincent and the Grenadines.
Holding companies which only hold equity participations in other entities and only earn dividends and capital gains will be subject to a reduced economic substance test – it must have complied with all applicable filing requirements and must have adequate human resources and adequate premises in St Vincent and the Grenadines for holding and managing equity participations.
Share capital – There is no minimum capital requirement other than issuing at least 1 share, and it may be denominated in any currency. Shares may be issued fully paid, partially paid, or nil paid. Shares may be registered shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights. Bearer shares are not permitted.
Shareholders – Business Companies may be formed by one or more shareholders, who can be either natural or legal persons, residents or non-residents, without limitations. Details of shareholders can be inspected by requesting the company file at the office of the FSA.
Directors – A Business Company must appoint at least 1 director, who may be a natural or legal person, resident or non-resident, without restrictions. Details of directors can be inspected by requesting the company file at the office of the FSA.
Secretary – The company may appoint a secretary, but it is not mandatory.
Registered Address – A company shall appoint a licensed registered agent and shall have a registered address and office in Saint Vincent and The Grenadines.
General Meeting – A business company need not hold AGM, and it can be held anywhere and by electronic means.
Electronic Signature – Permitted.
Re-domiciliation – Inward and outward re-domiciliation is allowed.
Compliance – Business Companies must submit annual financial statements every June for the previous financial year. For companies whose gross revenue for the financial year does not exceed four million XCD; or whose total assets does not exceed two million XCD, they may submit a simple declaration of solvency in lieu of the financial statements.
Business Companies must submit an annual tax return, regardless of whether they are subject to taxes or not, on or before 30 March every year.
Business Companies must also submit an annual economic substance return.
- Shareholders not disclosed
- Directors not disclosed
- Corporate shareholders permitted
- Corporate directors permitted
- Local director required
- Secretary required
- Local secretary required
- Annual general meetings required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum shareholders
- 1 Minimum directors
- - Minimum issued capital
- - Minimum paid up capital
- USDAny Capital currency
- Anywhere Location of annual general meeting
- 2018 AEOI
Taxes
Corporate Income Tax – Business Companies are subject to a territorial tax system -
- income which arises from activities taking place in St Vincent (local-source income) is subject to 30% income tax
- income which arises from activities taking place outside of St Vincent (foreign-source income) is exempt from tax
Other taxes – Saint Vincent & The Grenadines levies personal income tax on tax resident individuals at progressive rates up to 32.5% on income accrued or remitted to the country exceeding XCD 10,000. Tax residents are individuals physically present in the country for at least 183 days in a year.
Real property tax is levied at a 5% rate on the market value of the property. There is a transfer tax on the sale of immovable property at 5% for both the buyer and the seller. There are no inheritance and wealth taxes.
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- 0% Offshore Income Tax Rate
- 30% Corporate Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 0 Losses carryforward (years)
- 0% Personal Income Tax Rate
- 15% VAT Rate
- 31 Tax Treaties
Country details
Saint Vincent and the Grenadines is an island country in the Americas, member of the Commonwealth and CARICOM, located to the north of Venezuela and the island of Granada, in the chain of the Lesser Antilles of the Caribbean Sea. Its territory of 389 sq. km comprises the main island of St Vincent and two-thirds of the north of the Grenadines archipelago. The country is inhabited by 103,000 people.
Its capital and the most populated city is Kingstown, located on St Vincent island. Its official language is English, although part of its population also speaks the St Vincent Creole, an English-based Creole with elements of French.
Its official currency is the Eastern Caribbean Dollar (XCD), which is pegged to the US Dollar (USD) at a 2.7:1 ratio. The US$ is also widely accepted.
Saint Vincent and the Grenadines is a parliamentary democracy within the British Commonwealth of Nations. The British monarch is head of state and is represented on the island by a Governor-General, a position with ceremonial functions. Government control rests with the Prime Minister and Cabinet.
Saint Vincent and the Grenadines is a full member and participant of the Caribbean Community (CARICOM), the Organization of Eastern Caribbean States (OECS), the Bolivarian Alliance for the Americas (ALBA). The community of Latin American and Caribbean States (CELAC), Organization of American States (OAS)
St. Vincent’s main economic activities are the export of agriculture products -bananas, root crops, arrowroot, and exotic fruits, in addition to construction, tourism - Grenadines is a top destination of the up-market yachting crowd - offshore financial services and the issuance of postage stamps.