Grenada is an island nation in the Caribbean considered one of the best tax havens in the world. The country is rich in natural resources and attractive as a tourist destination. Grenada is an offshore country where most of the income of non-residents is tax-free. Entrepreneurs can promote international trade and provide access to the U.S. market, opening a company in St. George's or any other city in Grenada. Local laws protect investors' rights.
Advantages of registering a company in Grenada
- well-developed infrastructure;
- political stability;
- access to the international market;
- minimum registration requirements;
- prospects of obtaining citizenship for investment;
- possibility of opening a single-owner company in Grenada;
- no need to hold shareholder meetings, publish data on beneficiaries and directors;
Main forms of legal presence and doing business
- sole proprietorship;
- international business company (IBC);
- Limited Liability Company (LLC).
- reserve a unique company name with the Office of Corporate Affairs and Intellectual Property;
- go through the company registration procedure in Grenada, submit the required documents, and obtain a certificate;
- obtain company seal;
- file information with the Inland Revenue Department for tax purposes;
- register with the National Insurance Scheme for social security of employees;
- to open a bank account;
- obtain the necessary licenses and permits for business activities.
Legislation and regulatory environment
Grenada is a common law country that follows the legal structure of Great Britain. The Companies Act regulates the establishment of new companies. According to the document, to open a business in Grenada, you have to:
- appoint one or more directors and secretaries, who may be individuals or legal entities;
- have a registered agent and a registered office.
There is no minimum capital requirement for company registration in Grenada. The issue of bearer shares is prohibited, but securities may be issued with or without par value, redeemable or preferred, registered, or with voting rights.
According to the Land Ownership Regulation Law, an entrepreneur must obtain a license from the central government to purchase land or real estate. Otherwise, property, shares, or liens on land acquired by a foreign investor may be confiscated in favor of the state.
The tax system is based on the principle of tax residency. Corporate taxation is triggered if a company is incorporated in the country or has many business or financial transactions conducted in Grenada. The income of individuals is subject to local taxes on a general basis, provided that they reside in the state for more than 183 days per year and receive payment from local sources.
A company in Grenada that is considered a resident pays these taxes:
- corporate tax - 30%;
- VAT - from 0% to 20%, depending on the category of goods or services;
Corporations formed under the International Companies Act are fully exempt from corporation tax on business outside the island's jurisdiction. An investor may establish a company in Grenada and apply for tax exemption for 20 years.
Resident individuals pay income tax in the amount of:
- 10% if income is less than XCD 24,000 (about $9,000) ;
- 30% - in other cases.
There is no tax on inheritance, wealth, or capital gains, nor is there any stamp duty.
Companies in Grenada must keep accounting records. However, there is no requirement to file financial documents with regulatory authorities.
Open a business in Grenada: how Prifinance lawyers can assist
Grenada is an offshore country that offers privileges to foreign investors. Relatively simple local legislation protects the rights of business owners and creates a comfortable business environment. Prifinance lawyers will make the company establishment process in Grenada as simple and convenient as possible. We will take care of the preparation of documents and solve critical administrative tasks. Our staff can be entrusted with bookkeeping and annual maintenance. In addition, Prifinance guarantees client confidentiality.