Company formation in St. Vincent and the Grenadines can take place as onshore and offshore incorporation. There are many competitive advantages for starting a business here, and our consultants can provide information on such benefits. We advise foreign investors to address our team for legal representation during the process of St. Vincent and the Grenadines company formation.
With the help of our team, you can be sure that the registration process is carried out in a professional matter. Once the company is set up, our specialists can offer ongoing consultancy services tailored in accordance to the needs of the company.
Table of Contents
What is the legal entity most suitable for offshore company setup in St. Vincent and the Grenadines?
Investors who have decided that offshore incorporation is the most suitable approach to their investment plans can incorporate an International Business Company (IBC). The IBC is a tax-exempt legal entity that is defined by the following basic traits:
- the process of company incorporation in St. Vincent and the Grenadines can be completed by 1 shareholder;
- the company must have at least 1 director;
- the IBC can have 100% foreign ownership;
- the incorporation procedure can be completed in maximum 1 week (it can take less, around 3 to 5 business days);
- the legislation regulating how to set up a company in St. Vincent and the Grenadines as an IBC is given by the International Business Companies (Amendment and Consolidation) Act 2007.
Documents necessary for company incorporation in St. Vincent and the Grenadines
In order to register a legal entity, the investors (or their legal representatives, such as our team of specialists), have to prepare the registration file, which must contain similar documentation regardless if the company is an onshore or an offshore one.
The file should contain the company’s trading name, the statutory documents, proof of having a registered address, the resolution on the appointment of the director, information on the shareholders, the shares they own, etc.
Of course in case of offshore companies you can appoint a Nominee Director and Shareholder and the process will have to be conducted by a regulated fiduciary company.
Why invest in St. Vincent and the Grenadines?
Located in the Eastern Caribbean, St. Vincent and the Grenadines (SVG) can provide many investment opportunities. This region is also very popular for businessmen who prefer to expand their operations through offshore company formation. With regards to SGV, investors can rely on a stable political and legal system, rooted in the English system.
Among the top advantages that can be of interest, we mention matters such as: confidentiality (ownership/management of IBCs is not accessible to the general public), flexibility (1 shareholder, 1 director, who can have any nationality), relevant tax exemptions (businesses operating as offshores are exempt from paying the corporate tax and the capital gains tax).
What are the main taxes in SVG?
Foreign businessmen who plan to open a company in St. Vincent and the Grenadines must know that there are significant differences between the taxation of onshore and offshore companies.
While for the 1st category of businesses the tax burden is higher, given that such entities must pay all the taxes stipulated by the law, the 2nd is exempt from most of the tax obligations, as long as the income is generated from activities carried out with clients/partners overseas. According to the Inland Revenue Department, the current taxes are:
- 28% – the corporate income tax;
- 16% – the standard valued added tax rate, 11% and 0% – the reduced tax rates;
- 10%, 15% and 20% – the withholding tax rates.
We invite you to contact our consultants for further details on the company registration process and any other information that may be of interest when starting the St. Vincent and the Grenadines company formation process. You can also contact us for representation in setting up an onshore of offshore bank account.