Grenada Local Companies

Local companies in Grenada can take the form of partnerships, sole proprietorships and public or private limited liability companies. The rules which apply to incorporating Grenada offshore companies are similar to those for forming a local company since local companies only require one shareholder, one director, at least one share, a registered office and address and an approved company name. With these requirements in place, a local company can be established in Grenada. Also you can consider Dominica company as an alternative solution. Four major steps, registering a business name, preparing the business documents, registering the company and registering for taxes are required when incorporating. Once a business name and structure have been decided, the incorporator must submit an application to the Registrar of the Supreme Court Registry in accordance with the relevant laws. To register the business name, a statement of particulars which gives the details about the nature of the intended business, the name of the company, personal details of the incorporator, including nationality, place of domicile name and surname and occupation. The statement of particulars must be signed by all the directors of a corporation if the local company is being incorporated by a legal entity, by the individual if one person is the incorporator or by partners if a partnership.

Grenada local companies are required to prepare a constitution and formation documents, all of which must be duly notarized by an attorney. The main documents would include the Articles of Incorporation, a notice or director in which the names, occupation and addresses of all the directors are stated, and a notice of address which shows the location of operations and a business address if two different locations are used for office procedures and carrying on the business activities.

Upon fulfilling these two major steps, the company’s documents are to be taken to the Supreme Court Registry and the necessary stamps should be handed and fees paid. As approval and evidence of registration and incorporation, a certificate of incorporation is issued, thereby fully legal and formalizing the existence of a new Grenada local company.

Grenada local companies which deal with GCT payments are required to be registered with the Inland Revenue Department from the first day that operations are begun. However, other Grenada companies are given up to one year to register with the department. To register a Grenada local company for taxation, the department will require a copy of the business registration certificate (certificate of incorporation), a filled tax registration form and a valid form of identification. The requirements and details for registering a sole proprietorship are fewer than those needed for a Grenada local company. For example, information such as court registration date, bank information, residency, representative information and the name of the foreign parent apply to regular limited liability companies and not sole traders.

Finally, a Grenada local company must register with the National Insurance Scheme no later than seven days of serving the public.

Tax on income for a Grenada local company is charged on net profit. Concessions re provided for sole proprietors, employees and professionals with an annual income of under XCD60,000. The income tax rate for Grenada local companies is 30% of net profits, and for employees 30% on income more than XCD60,000.