'Offshore'
businesses in Grenada are normally incorporated
under the International Companies Act, Cap.
152, see below.
For
local businesses, other than as a requirement
under the Fiscal Incentives Act (for manufacturing
enterprises) there is no specific obligation
for a business to be incorporated as a company.
Thus an investor can form a sole proprietorship,
a partnership or limited liability company.
The usual form of business however, is a limited
liability company and investors are encouraged
to incorporate.
The
following ownership forms are recognized:
Local investors alone; Foreign investors alone;
Joint venture between foreign and local investors.
In
accordance with the Companies Act 35/94 Part
1, one or more persons may incorporate a Company
by submitting the following documentation
to the Registrar, Supreme Court:
-
Articles of incorporation;
-
A list of directors;
- Notice
of address;
- Request
for a name search.
Business names can be registered with the
Registrar, Supreme Court Registry.
Grenada International Companies
The principal legislation is the International
Companies Act Cap 152 of the Laws of Grenada,
as amended in 2002.
Before
an individual can apply for a licence for
banking, insurance, etc, an international
company (often referred to as an International
Business Company) has to be formed. Such a
company can be established to engage in any
lawful activity and is fully tax exempt. There
are no foreign currency restrictions.
The
key features of the Grenada International
Company are:
- Ease
of incorporation;
-
No disclosure of shareholders or directors
unless the international company intends
to engage in a licensed activity such
as insurance, banking or trust, international
betting or company management;
-
No filing requirements;
-
No audit requirements unless a licensed
entity;
-
Incorporation within 24 hours;
-
Confidentiality.
An International Company is incorporated by
filing the company's Memorandum and Articles
of Association with a Licensed Registered
Agents. Government charges to incorporate
an international company are at the time of
writing US$234.00 and annual renewal fees
are US$187.00. There are no specific legal
requirements for the contents of the Articles
of Association for an International Company,
however the content of the Memorandum of Association
is contained at section 12 of the International
Companies Act.
The
International Companies Act requires registered
agents to maintain records of the names and
addresses of directors and beneficial owners
of all shares, as well as the date the person’s
name was entered or deleted on the share register.
At the time of writing, there are 15 registered
agents licensed by the GIFSA.
The
International Financial Services (Miscellaneous
Amendments) Act 2002 required all offshore
financial institutions to recall and cancel
any issued bearer shares and to replace them
with registered shares. The holders of bearer
shares in non-financial institutions must
lodge their bearer share certificates with
a licensed registered agent.
These
agents are required by law to verify the identity
of the beneficial owners of all shares and
to maintain this information for seven years.
GIFSA was given the authority to access the
records and information maintained by the
registered agents, and can share this information
with regulatory, supervisory, and administrative
agencies.
At
present, 6,000 international companies are
incorporated in Grenada; the island is a popular
jurisdiction for Americans and Europeans.
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Grenada
Trusts
The principal legislation is The International
Trusts Act 1996. Key features are as follows:
- The
Trusts Act is based on English common
law, extensively modernized to make it
suitable for asset protection purposes.
- The
settlor, protector and beneficiary may
not be resident in Grenada in order to
preserve tax exemption.
- Trusts
need not be registered.
- The
Trustee(s) (a minimum of one and a maximum
of four) can be resident anywhere.
- The
maximum perpetuity is 120 years.
- The
law has spendthrift provisions.
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