Saint Vincent and the Grenadines is an independent country located in the West Indies on the eastern border of the Caribbean Sea. This offshore financial centre can offer benefits to those looking for a place with moderate expenses and the advantages of a small-scale financial centre.
The British monarch is formally the head of state. The country is ruled by the House of Assembly of Saint Vincent and the Grenadines.
St. Vincent’s financial industry has been growing steadily. Compared to other Caribbean financial centres, St. Vincent and the Grenadines remains a comparably small offshore jurisdiction. However, this factor may be to the advantage of those seeking an alternative to other popular centres. St. Vincent and the Grenadines is a primary jurisdiction for companies engaged in financial activities such as forex and brokerage services due to the relaxed regulation of these activities.
In 2018, there were major changes in company and business taxation legislation. The taxation of an offshore company was changed from a preferential tax regime to territorial taxation. Consequently, Business Companies (BCs) and Limited Liability Companies (LLCs) in St. Vincent and the Grenadines enjoy zero taxation on profits, capital gains and passive income derived outside the islands’ territory.
It should be noted that the law exempts St. Vincent offshore companies from taxation in different ways. Territorial taxation is applicable to the Business Company, while the Limited Liability Company is exempt from all taxes by statute. Territorial taxation means that BCs are subject to corporate tax on income derived within the island’s territory (if any). There is a common misconception in public sources that BCs are subject to income taxes on worldwide income. It should be noted that under the Income Tax (Amendment) Act, 2020, BC profits are only taxable if they are derived in the territory of St. Vincent and the Grenadines.
No VAT is applicable to a St. Vincent offshore company.
The official currency of St. Vincent and the Grenadines is the East Caribbean dollar (XCD).
There are no currency exchange controls in St. Vincent and the Grenadines.
|Currency||East Caribbean Dollar (XCD)
USD is widely used
|Capital gains tax||0%|
The legal system in St. Vincent is based on common law.
The court of final appeal for St. Vincent is the Caribbean Court of Justice.
Financial services on the islands are regulated by a separate set of laws. The Business Companies Act of St. Vincent and the Grenadines is a primary statute that regulates all matters regarding BCs. The legislation also includes the Limited Liabilities Companies Act and the International Trust Act. The non-banking financial services industry in St. Vincent is supervised by the FSA.
St. Vincent and the Grenadines company registration is one of the best options for incorporating companies engaged in brokerage and forex activities. It is not required to obtain a financial licence on the island for these activities. However, such a licence must be obtained in the jurisdiction where the company would operate.
In order to implement the new territorial taxation regime, St. Vincent offshore companies changed their name from International Business Companies (IBCs) to simply Business Companies (BCs).
Trust legislation in St. Vincent contains asset provisions similar to those in Nevis. The trusts holding the shares of St. Vincent BCs are regulated by the same provisions as the BVI VISTA trusts. This effectively relieves the trustee of the duty to oversee the management of the underlying St. Vincent company.
The following laws provide for the existence of offshore companies in St. Vincent:
St. Vincent and the Grenadines company formation is a very attractive option for a classic assets holding offshore company, international trading company or for yacht ownership. In particular, it is highly appealing for forex and brokerage services as the jurisdiction does not regulate these types of activities.
St. Vincent offshore company formation is attractive due to the competitive fees that can minimise the administrative costs of maintaining the company.
St. Vincent remains a relatively small financial centre compared to other more popular Caribbean offshore centres. On the other hand, St. Vincent has all the necessary asset protection provisions in its legislation. Thus, this jurisdiction is perfect for those who want cost-effective solutions by avoiding the other more popular offshore jurisdictions.
The St. Vincent company register is very efficient and fast as it operates online. Although the information is stored as a public record, information about beneficial owners is not available to the public.
The following types of entities can be incorporated in St. Vincent and the Grenadines:
Companies incorporated in St. Vincent are an excellent choice, inter alia, for the following activities:
|Stage 1||Contact us for more information and quotes. We answer within three hours!|
|Stage 2||Fill in a form, provide us with the required documents and make a payment.|
|Stage 3||Receive the scanned incorporation documents within two days, and hard copies by courier in up to seven days.|
To incorporate St. Vincent company the following CDD documents are required:
The costs of company formation include services for the following:
After incorporation you receive the following documents:
Under the International Business Companies Act of Saint Vincent and the Grenadines, the company name shall end with the following words:
Alternatively, the abbreviations “Ltd.”, “Corp.” or “Inc.” may be used.
The law also allows the use of foreign names in the last part of the company name instead of the abovementioned words. The following words or their abbreviations may be used:
The proposed company name can be checked for availability by Astra Trust within 1-2 working days.
The company name cannot suggest any connection to Her Majesty, the Royal Family, or a connection to a municipality or other local authority or a society or body incorporated by royal charter. It also cannot be a name prohibited by the laws and regulations in St. Vincent and the Grenadines.
The St. Vincent Business Company must have at least one director and one shareholder. There are no restrictions on the residency or nationality of the directors and shareholders. Corporate directors are allowed.
Board meetings can take place anywhere in the world.
Nominee services are available in St. Vincent. It is possible to appoint a director and nominee shareholder after registering a St. Vincent and the Grenadines company. Astra Trust can assist with all matters related to St. Vincent company formation, appointment of nominees and the opening of bank accounts.
The company can be incorporated in St. Vincent with the following capital structures:
The standard authorised share capital of the company limited by shares is usually USD 50,000 or in another currency, with a denomination of USD 1 per share.
The issued share capital to shareholders can be of any amount, starting from 1 share and up to all 50,000 shares.
The authorised share capital can be both par value and no par value. This is regulated by the Articles of Incorporation of the company.
Bearer shares are prohibited from being issued in St. Vincent.
St Vincent and the Grenadines is considered a highly confidential jurisdiction with moderately strong confidentiality laws.
Information on directors and shareholders is publicly accessible. This information is filed with the Registrar of Companies and is available to the public upon paid request.
The corporate registers are kept at the company’s registered office and maintained by the registered agent. The Financial Services Authority of St. Vincent may inspect the company’s corporate registers.
Information on the beneficial owners of the company can only be disclosed to authorities of other countries and only upon official legal request from such authorities.
A company incorporated in St. Vincent and the Grenadines is subject to economic substance requirements.
According to the International Cooperation (Economic Substance) Act, 2020, a St. Vincent company involved in the relevant activity shall ensure that it satisfies the economic substance requirements.
For the purposes of the Economic Substance Act, relevant activities are as follows:
St. Vincent companies that do not conduct the above activities are not relevant entities and do not fall under the scope of the economic substance requirements.
For companies with a holding business as the relevant activity, only the relaxed economic substance requirements are applicable.
Companies carrying on business activities in the territory of St. Vincent and the Grenadines are required to file financial statements on an annual basis starting one year after the date of incorporation.
There are no reporting requirements for offshore BCs that do not conduct activities in the territory of St. Vincent and the Grenadines.
Business Activity Restrictions
Requirements to Directors
Requirements to Secretary
Requirements to Shareholders