Starting a Business
LEGAL AND REGULATORY FRAMEWORK
Investors may freely invest in all fields of lawful economic activity except activities prejudicial to national security or detrimental to the natural environment, public health or the national culture.
Investors must register a business name, a partnership or a limited liability company. Registered businesses may be wholly-owned or joint venture.
Caricom investors are accorded Rights of Establishment. Non National investors require alien landholding licenses to invest in property and work permit to gain employment.
PROCEDURES FOR STARTING A BUSINESS
It takes four (4) procedures, eight (8) days and costs US$14 to start a business in Grenada. Details are provided below.
1. Business Name Search (3 days, US$4)
2. Business Name Registration (2 days, US$10)
3. Tax Registration (2 days, free)
4. Social Security (1 day, free)
• If a company is to be formed, it will take 12 days, US$1,369 for local registrant and US$1,848-foreign registrant.
• If a partnership is to be formed it will take 7 days and US$10
• If permits and licenses are required it will take 30 days
• To open a bank account and deposit start-up capital it will take 7-14 days.
• To register with the Private Sector Association it will take 30 days and the payment of an annual membership fee.
Any of these steps can be done simultaneously.
DOING BUSINESS PROCEDURE
REGISTERING A BUSINESS NAME
Every business operating in Grenada is required to register a business name with the Supreme Court Registry within 14 days of commencement of the business operations. The process is as follows:
1. Determine type of business structure (Sole Proprietor, Partnership or Company)
2. Determine the business name
3. Prepare letter of application (in duplicate) in the prescribed form to the Registrar of the Supreme Court Registry requesting the registration of the business name under the Business Name Ordinance, Cap.281 of the Revised Laws of Grenada and a partnership or a company under the Companies Act No. 35 of 1994.
4. Prepare statement of particulars (in duplicate) in the prescribed form. A statement of particulars must include the following:
1. The name of the business
2. General nature of the business
3. The principal place of business
4. Where the registration to be effected is that of an individual
1. The present Christian name and surname
2. Former Christian name and surname
3. The nationality
4. The usual residence
5. The other business occupation of the individual
5. Where the registration to be effected is that of a firm For each of the individuals who are partners the following:
1. The present Christian name and surname
2. Former Christian name and surname
3. The nationality
4. The usual residence
5. The other business occupation
6. Corporate name
7. Registered or principal office of every corporation which is a partner
8. Where the registration to be effected is that of a corporation
9. its corporate name
10. Registered or principal office
11. Date of commencement of the business
5. The statement of particulars must in the case of an individual be signed by him, in the case of a corporation by a director or secretary and in the case of a firm by all the individuals who are partners and by a director or the secretary of all corporations which are partners. If the statement is signed by some individual who is a partner or a director or the secretary of some corporation which is a partner, the signatory must be verified by statutory declarations.
Setting Up an Individual (Sole Proprietorship) Business
REQUIREMENTS
The following is required to set up an individual
(sole proprietorship) business.
• A name that has been registered with the Supreme Court Registry
• An address for service
The rate of tax on companies in Grenada is 30%.
Grenadian resident companies are liable to income tax on all sources of nonexempt income wherever arising. A company is regarded as resident in Grenada if its central management and control is located and exercised in Grenada or if it was incorporated in Grenada. A non-resident company is taxed on income of a branch carrying on a trade or business in Grenada, i.e. the income arises in Grenada.
Persons working in Grenada are exempt from paying income Tax once their earnings do not exceed $60,000 EC Dollars per year.
Persons earning in excess of $60,000 EC Dollars per year are taxed at a rate of 30% on the amount that exceeds the non tax threshold of $60,000 EC Dollars per year.
e.g. A person earning $80,000 EC Dollars a year will only be required to pay 30% income tax on the $20,000 that exceeds the first $60,000 that is exempt.
Registering for Taxes
Every business operating in Grenada is required to register with the Inland Revenue Department within one (1) year of commencement of the business operations.
Procedure for Registering for Taxes
1. Present to the Inland Revenue Department a copy of the Business Registration Certificate
2. Present proper Identification (Driver’s License, NIS Card)
3. Complete the Tax Registration Form
The Tax Identification Number is issued within 2-3 days
This procedure is the same for sole proprietorship, partnership and legal corporations
Tax Registration Form details needed for Corporations, Partnerships, Joint Ventures
| • Enterprise Type | • Mailing Address |
| • Registered Name | • Foreign Parent Name |
| • Registration Number | • Trade Types |
| • Court Registration date | • Bank/Credit Union Information |
| • Trade name | • Representative Information |
| • Start Date | • Enterprise Establishment |
| • Fiscal year Start/End | • Enterprise Employment |
| • Residency |
Tax Registration Form details needed for Sole Proprietorship
| • Owners Name | • Enterprise Employment |
| • NIS Number | • Business Activities |
| • Trade Name | • Contact Name/Title |
| • Start Date | • Business Mailing Address |
Registering for Social Security
Every business operating in Grenada is required to register with the National Insurance Scheme within seven (7) days of the commencement of the business operations. Registration with the National Insurance Scheme is regulated Act No. 14 of 1983, Cap 205.
Requirements
Every Employer is mandated by the Scheme to:
• Be registered within seven (7) days of operations
• Ensure that all the employees between the ages of 16 and 60 are registered within four (4) days of employment
• Deduct and pay contributions on behalf of each employee on or before the 14th day of the subsequent month.
Registration Process
1. The employer must complete the employer registration form and submit with a copy of the business registration certificate
2. The employee must complete the employee registration form and submit with the birth certificate and any other relevant documents such as marriage certificate, affidavit, deed poll etc.
3. Both employers and employees are assigned individual
identification numbers.
4. Processing time is within one (1) working day.
Required Monthly Contributions
• 4% contribution deducted from the gross salary of the employee • 5% contribution of the employees gross salary by the employer
The benefits provided under the scheme:
| Long-term benefits: | Short-term benefits: |
| • Age Pension/Grant | • Sickness |
| • Invalidity Pension/Grant | • Maternity Allowance |
| • Constant Attendant | • Maternity Grant |
| • Funeral Grant | Employment: Injury |
| • Survivors Pension/Grant | |
| • Death Benefit | |
| • Reduced Age Pension |
Note: NIS does not pay gratuity age benefits
All non-nationals who wish to conduct a business or to be gainfully employed in Grenada must apply for a work permit. Application for work permit is regulated by the Foreign National and Commonwealth Citizens (Employment) Act No 18, 1968. Application forms can be obtained from the Department of Labour. A work permit is valid for one (1) year, and must be renewed annually.
Information required to obtain a work permit are as follows:
Complete Work Permit application form (in triplicate) signed by the intended employer on behalf of the employee
A Police Record /Clearance
Contact Numbers
Certified copies of educational certificates/qualifications
Four passport size pictures (2×2.5 and of international standards)The name of the applicant must be written at the back of the photograph.
Businesses are required to submit Registration certificates.
A company stamp must be applied.
A cover letter from employer; addressed to the Minister for Labour, through the Permanent Secretary, Department of Labour
Character reference from previous employer or reputable person if no previous employment
FEES
Persons who belong to Anguilla, Antigua, The Bahamas Islands, Barbados, Belize, British Virgin islands, Dominica, Guyana, Jamaica, Montserrat, St. Christopher-Nevis, St. Lucia, St. Vincent and the Grenadines and Trinidad and Tobago will pay a fee of $369.
A person who holds a Certificate of Recognition of Caribbean Community Skills Qualification, under section 7 of the Caribbean Skilled Nationals Act No. 32 of 1995, shall not be required to pay a fee.
Citizens of, or persons who belong to, Commonwealth countries other than those stated in paragraph number one (1) above, Member States of the European Economic Community and the United States of America shall pay a work permit fee of $1,105
Persons other than those mentioned in paragraphs (1),(2) and 3 above shall pay a work permit fee of $1,841.
WORK PERMIT FORM
GOVERNMENT
MINISTRY OF LABOUR, SOCIAL SECURITY AND ECCLESIASTICAL AFFAIRS
Ministerial Complex, Third Floor
TEL: 440-2532 FAX: 440-4923
Hon Karl Hood, Minister for Labor, Social Security and Ecclesiatical Affairs
Ms. Maureen Baptise, Acting Permanent Secretary
EMAIL: ministry.labour.gd@gmail.com
FIRST CARIBBEAN INTERNATIONAL BANK
P.O.Box 37. Church St. St George’s, Grenada. W.I. Tel: 1 473 440 3232 Fax: 1 473 440 8097 www.Firstcaribbeanbank.com
GRENADA CO-OPERATIVE BANK LTD.
P.O.Box 135. 8 Church St. St. George’s, Grenada. W.I. Tel: 1 473 440 2111 Fax: 1 473 440 6600 info@grenadaco-opbank.com; www.grenadaco-opbank.com
RBTT BANK GRENADA LTD.
Personal & commercial loans for every need. Foreign Currency, Letters of Credit. Credit Card & ATM services.
REPUBLIC BANK (GRENADA) LTD.
BUSINESS CONSULTING
ACTIONCOACH
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ATTORNEYS
GRANT JOSEPH & COMPANY
Attorneys-at-Law & Notaries Public. Broad based company/ commercial practice including: Real Estate transactions, Intellectual Property, Family, Probate and Civil Litigation.
HENRY HENRY & BRISTOL
HENRY HUDSON-PHILLIPS & CO.
Practice: All areas of civil practice inc. litigation, conveyancing, real estate, probate & administration/ succession. Company & Family Law.
JERRY A. SEALES
Admitted:-Grenada Bar, U.S.A. Supreme Court, U.S.A. Tax Court, U.S.A. 10th Circuit Court of Appeals, U.S.A. District Court of Kansas.
SHADEL NYACK COMPTON
International Business Law, Corporate Law, Real Estate transactions & Probate.