International Business Company (Company limited by shares)
Grenada International companies are companies limited by shares entitled to do business internationally and restricted to trade with Grenadian residents and own real estate interests in the country.
International companies are free from income taxes, withholding taxes, capital gains taxes, inheritances or gift taxes, guaranteed for a 20-year period commencing at the date of incorporation.
Grenadian ICs benefit from a simple and fast registration procedure, minimal reporting requirements and confidentiality, as shareholders and directors’ details are not disclosed to the public. In addition, these companies are easy to manage and have a very flexible structure.
They can be incorporated with a single shareholder and director, who may be from any nationality, may be the same person and may be a corporation or a natural person.
There are several offshore bank accounts available in Grenada that may allow access to merchant accounts, online banking, credit and debit cards, and private banking services.
Grenada has committed to undertake the OECD’s automatic exchange of information (AEoI) through Common Reporting Standard (CRS) by 2018.
A Grenadian international company is an ideal vehicle for tax planning, international trade and wealth management, allowing shareholders to secure funds and assets for rainy days or retirement.
Country code – GD
Legal Basis – Common law
Legal framework – International Companies Act, Cap.152 (amended in 2002)
Company form – International Company (IC) (Company limited by shares)
Liability - The liability of the shareholders for the company is limited to the amount of their respective shareholdings.
Business restrictions – An International Company may not carry out a business activity with residents of Grenada and may not own real estate property in Grenada.
Share capital – The usual authorized share capital is US$ 50,000. There is no minimum paid up capital requirements. Capital may be denominated in any currency.
A variety of shares may be issued, including redeemable or preference shares, registered or with or without rights to vote. Bearer shares are not allowed.
Shareholders – International Companies may be formed by one or more shareholders, who can be either natural or legal persons and may be non-residents. Details of shareholders are not available to the public.
Directors – An International Company must appoint at least 1 director, who may be a natural or legal person and may be non-resident. Directors’ details are not disclosed in a public record.
Secretary – The company must appoint a secretary. Secretary may be a natural or a legal person, resident or non-resident.
Registered Address – A company shall appoint a licensed registered agent and shall have a registered address in Grenada
General Meeting – An international company need not hold AGM, and it can be held anywhere and by electronic means.
Electronic Signature – Permitted.
Re-domiciliation – Inward and outward re-domiciliation is allowed.
Compliance – Companies may maintain accounting records for 5 years, these may be kept anywhere and in any currency.
There is no requirement to file an annual return, financial statements nor a tax return.
International companies are subject to a registration fee and an annual renewal fee.
- Shareholders not disclosed
- Directors not disclosed
- Corporate shareholders permitted
- Corporate directors permitted
- Local director required
- Secretary required
- Local secretary required
- Annual general meetings required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum shareholders
- 1 Minimum directors
- USD 1 Minimum issued capital
- - Minimum paid up capital
- USDAny Capital currency
- Anywhere Location of annual general meeting
- 2018 AEOI
Corporate income tax – International companies are not subject to taxation. All trading income, investment income, capital gains, compensations, rents and royalties derived from outside of Grenada are exempted from taxation. These tax exemptions are guaranteed to all Grenada international companies for a twenty year period.
Other taxes – Grenada levies personal income tax on its tax residents at a tax rate of 10% on their first annual XCD 24,000 of Grenadian-source income and 30% on the exceeding amount. Capital gains and foreign-source income are not subject to taxation. To be a tax resident, an individual must spend at least 183 days in a year within the country.
There is VAT at 15% levied on the supply of goods and provision of services within Grenada.
Property tax ranges from 0% to 0.5% depending on the use of the property. Transfers of real property are subject to a tax from 5% up to 15%, depending whether it is sold to a resident or to a non-resident. There are no inheritance and gift nor wealth taxes in Grenada.
- Offshore Income Tax Exemption
- Offshore capital gains tax exemption
- Offshore dividends tax exemption
- CFC Rules
- Thin Capitalisation Rules
- Patent Box
- Tax Incentives & Credits
- Property Tax
- Wealth tax
- Estate inheritance tax
- Transfer tax
- Capital duties
- 0% Offshore Income Tax Rate
- 0% Capital Gains Tax Rate
- 0% Dividends Received
- 0% Dividends Withholding Tax Rate
- 0% Interests Withholding Tax Rate
- 0% Royalties Withholding Tax Rate
- 0 Losses carryback (years)
- 0 Losses carryforward (years)
- 4.00% Social Security Employee
- 5.00% Social Security Employer
- 30% Personal Income Tax Rate
- 15% VAT Rate
- 30 Tax Treaties
Grenada is a Caribbean country, member of the CARICOM and the Commonwealth. It is located in the Lesser Antilles, in the southeastern Caribbean Sea, north of Trinidad and Tobago, northeast of Venezuela, and south of Saint Vincent and the Grenadines.
It consists in the main island (Grenada) and a series of small islands, the southern Grenadines. With just 344 sq. km and a population of 109,000 inhabitants, it is the second smallest independent country in the Western Hemisphere (after Saint Kitts and Nevis).
Its capital is Saint George. The official language is English, which is the one used by the Government, although its people talk an English Creole language, known as Grenadian Creole, which is a lingua franca. Its official currency is the Eastern Caribbean Dollar (XCD), pegged to the US dollar at a 2.71:1 ratio.
Being part of the Commonwealth of Nations, Queen Elizabeth II of England is formally the head of state. The British monarch is represented by a Governor General, although the real executive power falls on the leader of the government, the Prime Minister. Although the Prime Minister of Granada is appointed by the Governor General, he is usually the leader of the party with more representation in the Parliament.
The Grenadian Parliament consists of a Senate (with 13 members) and a House of Representatives (with 15 members). The senators are appointed by the government and the opposition, while the representatives are elected by the people every 5 years.
Its economy is mainly based on offshore financial services, tourism and agriculture. Regarding agriculture, Grenada is the world’s second largest producer of nutmeg after Indonesia. Other exports include maize spices, cocoa, citrus, bananas, cloves and cinnamon. It also has a small manufacturing sector, processing other foods and producing beverages, textiles and assembly of electronic components for export.
Regarding the offshore financial sector, its legislation allows the formation of International Business Companies, which are entitled to do business outside the country and are fully tax exempt. In addition, International Companies benefit from almost non-existent reporting requirements and maximum confidentiality. Other popular offshore service in Grenada is the offshore trust for asset protection. Offshore banks in Grenada also offer a wide range of banking services.
Grenada has also a citizenship by investment program, where it is possible become a Grenadian through a US$200,000 donation or a US$350,000 real estate investment plus fees.
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