DOING BUSINESS IN GRENADA IN 2023
Since 2003, Healy Consultants Group PLC has been assisting with i) business registration; ii) regulatory licensing; iii) corporate bank account opening; iv) business visa and staff recruitment strategies and v) office rental solutions.
| Summary | Limited Liability Company | Agri-Business company | Manufacturing company | Tourism company | Limited Liability Partnership |
|---|---|---|---|---|---|
| Best use of company? | All products and services | Agricultural activities | Manuf. & trading | Recrn. & hospitality | Prof. services |
| How soon can you invoice Clients/sign sales contracts? | 2 weeks | 6 weeks | 6 weeks | 6 weeks | 4 weeks |
| How soon can you hire staff? | 2 weeks | 6 weeks | 6 weeks | 6 weeks | 4 weeks |
| How soon can you sign a lease agreement? | Immediately | Immediately | Immediately | Immediately | Immediately |
| How long to supply corporate bank account numbers? | 4 weeks | 4 weeks | 4 weeks | 4 weeks | 4 weeks |
| How long to supply company registration/tax numbers? | 2 weeks | 6 weeks | 6 weeks | 6 weeks | 4 weeks |
| Corporate tax rate on annual net profits for first 10 years? | 28% | 28% | 0% | 0% | 28% |
| Limited liability entity? | Yes | Yes | Yes | Yes | Yes |
| Government grants/ incentives available? | Yes | Yes | Yes | Yes | Yes |
| Government approval required for foreign owners? | No | No | No | No | No |
| Resident director/partner/manager/legal representative required? | No | No | No | No | No |
| Minimum paid up share capital? | None | None | None | None | None |
| Can bid for Government contracts? | Yes | Yes | Yes | Yes | Yes |
| Corporate bank account location? | Scotiabank | Grenada Co-op | Republic Bank Ltd. | RBTT Bank | CIBC |
| Can secure trade finance? | Yes | Yes | Yes | Yes | Yes |
| VAT payable on sales to local customers? | 15% | 15% | 15% | 10% on hotel accm. | 15% |
| Average total business set up engagement costs? | Request a proposal | Request a proposal | Request a proposal | Request a proposal | Request a proposal |
| Average total engagement period? | 2 months | 3 months | 3 months | 3 months | 2 months |
Grenada business setup summary
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How to start a company in St. Vincent and Grenadines?
- Grenada company registration can be done with only i) 1 shareholder; ii) 1 director and iii) US$1 as the minimum paid-up share capital;
- A limited liability company in Grenada will be subject to a corporate tax of 28% along with other major taxation benefits, such as exemption on capital duties as well as payroll taxes.
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Benefits of Grenada company registration
- Grenada is an excellent jurisdiction for foreign investors looking to relocate in the Caribbean region. The country offers a pleasant climate throughout the year along with its pristine natural environment and a low rate of crime;
- The country has significantly improved its infrastructural facilities, including providing i) high-speed internet access and increased international connectivity; ii) well-connected inland transportation services and iii) extensive port facilities with shipping links to ports of USA, Canada, Europe and Asia;
- Foreign entrepreneurs willing to invest in the ICT sector will find Grenada to be a lucrative destination to invest in. This is due to the increased government investment in digital infrastructure of the country leading to a complete penetration of mobile and broadband services in the economy;
- Tourism and hospitality are one of the emerging sectors in the Grenada. All companies belonging to this sector are entitled to major tax benefits including i) exemption from corporate tax for up to 10 years; ii) exemption from customs duties and iii) a reduced VAT of 10%;
- All companies incorporated in Grenada will be able to benefit from its memberships in CARICOM, WTO and EU- CARIFORUM, having partnerships with major countries like EU, United Kingdom and other Caribbean countries.
Problems with Grenada company registration
- The country is susceptible to natural disasters due to its geographical location. As a result, Grenada often faces a steep decline in the inflow of the tourists after any such natural disasters;
- Grenada has a small population of just over 100,000 people, thereby providing all newly incorporated non-trading businesses with a very limited market to expand into;
- Foreign entrepreneurs will often find it challenging to hire skilled workforce in Grenada due to its poor levels of adult education and absence of technological industries;
- It will not be cheap to conduct business in Grenada due to the country’s high electricity and water costs. Thereby, significantly raising the cost for operating a business in the country.
