At the end of 2018, the Government of SVG passed legislation that stipulates that Companies formed in 2019 will be subject to taxation in SVG and would need to file a tax return. These companies would be known as Business Companies (BCs) thereby replacing IBCs. However, SVG is aspiring to adopt a territorial tax regime before the end of 2020 regime meaning that BC’s will only be taxed on income earned in SVG and NOT worldwide once companies meet Economic Substance requirements that require companies to establish physical presence in SVG, hire local staff and engage in business with residents of SVG. These measures have been undertaken by SVG and many other jurisdictions due to the requirements the OECD and EU who can place SVG on international listings that can be damaging to the jurisdiction.
For IBCs formed before 2019, these entities will not be required to file tax returns or fulfill Economic Substance requirements until July 1, 2021.
- Provision of professional and consultancy services
- Establishing holding companies
- International trading and investment
- Ownership of real property and land
- Ownership of intellectual property
- Licensing and franchising
- The employment of staff working on overseas assignments
- Offshore e-business
If the shareholder of the BC is an individual, corporate entity, trust or foundation complete due diligence must be provided to Wilfred Services Ltd.
Special features of Business Companies (BC’s):
- BC’s are permitted to have one director
- Directors may be corporate entities or individuals
- Filing of names of directors and/or shareholders is optional
- Filing of By-laws is optional
- No minimum or maximum capital requirements
- Shares may be voting or non-voting, may be issued with or without par value, and multiple classes of shares are permitted
St. Vincent BC’s and Real Estate
In recent times, the government of St. Vincent and the Grenadines (SVG) has enacted legislation and corresponding regulations that allows the owners of St. Vincent and the Grenadines International Business Companies to purchase real estate in SVG.
This process is subject to the owners applying for an alien landholder’s licence before finalizing a transaction but could lead to the owners of the BC obtaining residency in SVG and eventual citizenship.
Wilfred Services Ltd.’s business advisory group consists of reputable lawyers/attorneys who could not only assist you with your alien landholder’s licence but also ensure that your SVG real estate purchase a virtually seamless process.