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St. Vincent and the Grenadines

 
   

Executive Summary
Saint Vincent and the Grenadines are located in the Caribbean Sea and are an island nation. The country was a French and British colony in the past. It consists of the island of Saint Vincent and two thirds of the Grenadines islands, which all together cover an area of 389 sq km.

English is the official language of the country, local dialect – Vincentian Creole is widely used in informal circumstances by local people. Kingstown is the capital of the country.

St. Vincent and the Grenadines is a parliamentary democracy within the Commonwealth of Nations. The Queen of the UK is the head of the state and is locally represented by a governor, appointed by the monarch. Unicameral House of Assembly has a legislative power; a governor usually appoints the leader of the majority party of the parliament to be a Prime Minister who then forms a Cabinet – having an executive power.

St. Vincent and the Grenadines is a parliamentary democracy within the Commonwealth of Nations. The Queen of the UK is the head of the state and is locally represented by a governor, appointed by the monarch. Unicameral House of Assembly has a legislative power; a governor usually appoints the leader of the majority party of the parliament to be a Prime Minister who then forms a Cabinet – having an executive power.

Economy of the jurisdiction is classified as lower-middle income economy, where agriculture dominated by banana production is the most important economic sector. Periodic storms bring significant damages to the crop, thus having a direct influence on economy. The country has a high unemployment rate. Tourism is well developed and brings significant income to the economy as well.

The East Caribbean Dollar (XCD) has been adopted as the national currency of St. Vincent and the Grenadines.

Geography
St. Vincent and the Grenadines lie between Saint Lucia and Grenada in the Caribbean Sea. Beautiful nature of the country was the reason to choose it for filming the “Pirates of Caribbean” movies. The country consists of more than 30 islands and hundreds of cays, sandbars and rocks. Some islands are not populated. St. Vincent is the biggest island; its North represents a mountainous territory with an active volcano. This part of territory is not urbanized due to the difficulty to build roads and develop infrastructure. The rest of the territory is rich with tropical forests. There is a big number of animals, fish and birds species in the country.

Due to its geographic position, being located near the equator, the weather is almost constant all the year round. The temperature ranges between 20 and 30 degrees C.
Map, Flag and Coat of Arm

 


Types of Company

International Business Company

It is the most popular type of company used for offshore business purposes. It takes less than one day to incorporate a company and the biggest part of the registration procedure is made online. Shareholders and directors of this company can be citizens and residents of any country. The minimum requirement of one shareholder, a private person or a corporate entity can form a company. Such a company must have at least one director. Directors and shareholders’ identity need not be filed with authorities. A corporate secretary is not obligatory. There are no minimum capital requirements. This company is allowed to own a land in the jurisdiction, although it might need to obtain a land holding license under some circumstances. These companies are exempted from taxes. There are no requirements for filing annual accounts and reports. Shelf companies may be incorporated.

Limited Duration Company
An International Business Company may obtain a limited duration status, and in such a case its name will end with “Limited Duration Company” or “LDC”. Usually, the Articles of this company specify that upon occurrence of specific events such a company ceases to exist.

Trust
In order to establish a trust, a trust deed must be submitted to Trust Registry. Purpose trusts without named beneficiaries may be established. The role of a trust protector is clearly explained. A bankruptcy or insolvency of a settlor does not affect a registered international trust. Trustees must carefully follow and ensure compliance with anti-money laundering requirements.

Company Limited by Guarantee
This company is often called Hybrid company because it unites an International business Company and a Trust’s features. This type of company is often used for estate planning purposes.

Taxation

Personal
There is no capital gains tax in St. Vincent and the Grenadines. Income tax has a progressive nature, starting at a rate of 10% and growing along with the raise in annual income of a person. VAT rate is 15%, but a reduced rate of 10% is applied in a hotel business. Such goods as cars, petrol, cigarettes, alcohol are charged with excise tax at varying rates, in addition to the VAT. Social security contributions are payable by employers at a rate of 4.5%, and by employees at a rate of 3.5%.

Corporate
There is no capital gains, no inheritance and no withholding tax. International entities registered within the jurisdictions are not liable to corporation tax. Local companies pay corporation tax on a progressive basis, starting at a rate of 10%. There is a property tax, which is charged at a rate of 5% of the property value.

 
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