Do you want to conduct business both locally and internationally through a St. Vincent and the Grenadines (SVG) company? If yes, then choosing a Business Company (BC) as a preferred structure can be an ideal choice.
A St. Vincent business company has many perks, such as a flexible tax regime. If you want to know more about its process and its documentation requirements, read the article.
What is a Business Company in St. Vincent?
A Business Company (formerly referred to as an International Business Company (IBC) is a legal entity formed within St. Vincent for the purpose of performing legitimate business activities.
It is regulated by the Business Companies (Amendment and Consolidation) Act No. 36 of 2018. This Act was introduced to create a unified regulatory framework by transitioning from the old IBC to the current BC structure.
What are the Differences Between an SVG IBC and a St. Vincent Business Company?
Specific changes followed when the IBCs were rebranded as Business Companies. Let us take a look at these in detail:
Key Features
St. Vincent IBC
St. Vincent BC
Act
International Business Companies (Amendment and Consolidation Act) Cap 149
Business Companies (Amendment and Consolidation) Act, 2018
Tax status
Guaranteed 25-year exemption from all local taxes.
Taxed only on income derived from SVG
Bearer Shares
Permitted (anonymous ownership)
Prohibited (all shares must be registered)
Local Business
Strictly prohibited
Permitted to do business with SVG residents.
Financial Records
No mandatory filing of accounts
Mandatory for all entities to maintain records
Economic Substance Requirements
Not required
Mandatory for all relevant (banking, intellectual property), non-relevant activity (general trading and consulting), and holding company requirements
What are the Benefits of Utilizing a St. Vincent Business Company?
When you choose a business company as your preferred legal entity, you can enjoy the following benefits. Here are some of the top advantages you can have a look at:
Territorial Tax System
When you open a company in St. Vincent, you can enjoy a territorial tax regime. This means you are typically liable for the standard 28% corporate tax on income generated within the SVG.
On the other hand, if you conduct business internationally (such as e-commerce, consulting, or software development), then you are exempt from local taxes. Moreover, there are no withholding taxes on dividends or on interest paid to non-resident shareholders, enabling efficient capital repatriation.
Streamlined Incorporation
A business company in St. Vincent can be incorporated within a few days with the assistance of a licensed agent. There are no legal mandates for directors or shareholders to be residents of SVG. Also, there is no requirement to hold annual general meetings within the country. This provides directors with a platform to manage their operations from anywhere in the world.
High Level of Privacy
SVG has amended its laws to comply with international transparency standards. It provides a high level of privacy for business owners. The names of directors and shareholders are recorded with the Registrar's Office and entered into a non-public database.
Furthermore, if any individual decides to search your company’s ownership on the internet, they will not be able to access any data, as the SVG registers are only accessible to tax authorities. This provides a level of confidentiality that will prevent you from being sued.
Minimal Costs
Compared to other popular offshore locations such as the British Virgin Islands (BVI) or Cayman Islands, the St. Vincent company formation fees are comparatively low. The annual fees and the registered agent fees remain remarkably low for both startups and large holding companies.
The primary step is to have a licensed agent with a registered address located within SVG. Your agent acts as an intermediary between the company and the government to handle all the filings.
Step 2: Choose a Business Name
Like with every business incorporation, you have to choose a company name. Your registered agent can conduct a name search in the Registry to ensure the name is not already registered.
Step 3: Undergo ‘Know Your Customer (KYC)’ Requirement
SVG adheres strictly to the anti-money laundering standards. However, every director, shareholder, and Ultimate Beneficial Owner (UBO) must submit documents such as proof of identity, proof of address, and a professional reference letter.
Step 4: Draft Articles of Incorporation (AoA)
Your agent can draft the Articles of Association, as it helps identify your company’s purpose and the amount of shares issued, as well as the names of your initial directors and shareholders.
Step 5: Submit Documents
Once your documents are signed and government charges are paid, your agent will submit the application to the Registrar of Business Companies. The registrar shall review the application and issue the Certificate of Incorporation (COI).
Step 6: Post-Incorporation Requirements
Once your company receives the Certificate of Incorporation (COI), it is legally allowed to operate. Additionally, if you intend to operate the business from St. Vincent, a license is required.
Why Choose Business Setup Worldwide?
Forming a St. Vincent business company and choosing a registered agent requires careful planning and research. Choosing the registered agent yourself might be time-consuming. To simplify these requirements, you can seek assistance from Business Setup Worldwide.
We have partnered with many offshore jurisdictions to offer you the best registered agent services and help choose the most suitable business structure in St. Vincent. For further details, contact us today!
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Aaron Richards is a seasoned expert with over six years of
experience who specializes in offshore company formation, trust
and foundation setup, and corporate services. Through his blogs,
Aaron shares valuable insights to guide clients in making informed
decisions about their global business needs.
Frequently Asked Questions
1. Does the business company in St. Vincent need to obtain a tax identification number (TIN)?
Upon incorporation, a Business Company in SVG must obtain a tax identification number (TIN) from the Inland Revenue Department.
2. How many shareholders and directors are required for a St. Vincent IBC?
You may have only one shareholder and a director to establish a St. Vincent IBC.
3. Can St. Vincent BC still get a 25-year tax exemption?
No, the automatic 25-year tax exemption for IBCs was repealed in 2018. All companies now operate under a territorial tax system.
4. Do I need to travel to St. Vincent to start the company?
No, the entire incorporation process can be handled remotely.
5. Can I reuse a company name from a dissolved SVG IBC?
Yes, once an SVG IBC is officially dissolved (not just struck off), the name returns to the public pool and can be registered by a new entity.
