Starting a new business in Grenada

The tax-free status of Grenada is one of them major attractions to start a business there. It is relatively simple to start a business in Grenada. There are certain procedures to be followed to set up your own business in Grenada.

Formation of a company

The formation and registration of a company in Grenada is regulated by the Company Act No. 35 of 1994.  One (1) or more persons may incorporate a company.  The following steps are required: 

• File the Articles of Incorporation to include:
  The name of the company
  The class of shares in the company
  The number of directors
• File the Notice of Directors, which include:
  The names of the Directors
  The addresses of the Directors
• File Notice of Address to include:
  Location of operations
  Address if different from main place of operation
  Fees:
  Certificate of Incorporation & Legal Fees - USD $1124
  Filing Fee: USD $450 - Local Company  $937 - Foreign Company
  Name Search - USD $4

Registration of a business
Registration of any Business in Grenada is regulated by Cap. 281 of the Registration of Business Act. The following steps are required:

• Submission of request in the format of a letter which must contain a statement of particulars include:
  The name of the business
  General nature of the business
  Intended address of the business
  Name of business owner
  Owner’s nationality
  Any previous surnames e.g. maiden names
  Any other occupation by owners
  Date of commencement of business
• A statutory declaration must be made to indicate that the statements in the particulars are true
• Fees:
  Name search and reservation – USD $4
  Business Registration – USD $10
  Amendment to Business name – USD $4
  Certified Copy – 0.38¢

Registration with the National Insurance Scheme

Registration with the National Insurance Scheme in Grenada is regulated Act No. 14 of 1983, Cap 205 and acts as a form of security and protection for contributors to the scheme against economic and social distress. The regulations mandate that all employed persons between the ages of 16 and 60 must be registered with the Scheme.

Every Employer is mandated by the Scheme to:

• Be registered within seven days of operations
• Ensure that all the employees are registered within four days of employment
• Deduct and pay contributions on behalf of each employee on or before the 14th day of the subsequent month

Registration process

The employer is required to complete the employer registration form which must be submitted with a copy of the business registration certificate, birth certificate and any other relevant documents such as marriage certificate, affidavit, deed poll etc.  Both employers and employees are assigned individual identification numbers. Processing time is within one working day.

Required monthly contributions

• 4% contribution deducted from the gross salary of the employee
• 5% contribution of the employee’s gross salary by the employer
• The benefits provided under the scheme can be classified into two categories: Long-term benefits & Short-term benefits

Note: NIS does not pay gratuity age benefits

Registration with the Inland Revenue Department

Every business in Grenada is required to register with the Inland Revenue Department within one year of commencement of the business operations.  However, where the business has a service area which attracts GCT payments, for which registration is required prior to the first day of operations.

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Source: www.grenadaworld.com