When choosing a jurisdiction for registering an offshore company, international businesses have several viable options. Each has its own characteristics, importance and applicability, which are determined by the specific case, the objectives set, the company’s management structure and the financing requirements. If a good balance of characteristics, a favourable tax climate and the possibility of obtaining citizenship through investment are priorities, Grenada’s offshore jurisdiction should be included in the list of main options.
The jurisdiction offers favourable conditions for doing business. This applies to legislative regulation, additional opportunities for businessmen, access to legal tax planning, asset protection and diversification. The business registration procedure in Grenada is standardised and does not involve significant costs or time. The jurisdiction will be of interest to businesspeople, investors, start-up founders and wealthy individuals, as it offers every opportunity not only for commercial activities but also for high-quality leisure.
Business profile of the island of Grenada:
Modern trends towards transparency, combating financial irregularities and aggressive optimisation methods have significantly changed the criteria for choosing a country in which to launch a cross-border business. Low or zero taxes are an advantage, but only if they are complemented by other opportunities and privileges.
An offshore company in Grenada operates in a favourable legal environment. It has access to numerous advantages, and the benefits of registering a business can also be enjoyed by its organisers. Therefore, a commercial project launched here has every chance of success, and investments will be profitable and secure.
Key advantages for business:
The rules and practices of conducting cross-border business have changed significantly, and offshore jurisdiction status is no longer an unconditional positive factor. Grenada has retained all the advantages of commercial activity in traditional tax-free zones for investors, strengthening them with modern corporate legislation and a friendly attitude towards foreign investors and business people. Grenada’s developed banking system eliminates problems with access to financial services, and the possibility of obtaining a second passport in a simplified manner allows for the successful implementation of complex projects for asset protection and diversification.
An offshore company in Grenada is not restricted in its choice of business activities. This versatility differs from the approach taken in other tax-free jurisdictions, each of which is focused on a specific and strictly defined model of use. Grenada is an offshore jurisdiction with modern corporate and financial regulations, adapted to the realities of the digital economy and fully meeting the expectations of businesspeople, investors and high net worth individuals.
Possible business formats in Grenada:
It should be noted that business confidentiality in Grenada does not conflict with international anti-money laundering trends. The jurisdiction is not included in the FATF or OECD black or grey lists. This removes long-term risks for businesses and makes asset protection in Grenada significantly more reliable.
The jurisdiction complies with all FATCA recommendations, which eliminates systemic risks associated with the blocking or forced closure of correspondent dollar accounts. Grenada has been participating in the automatic exchange of financial information (CRS, Common Reporting Standard) since September 2017, so large investors and high net worth individuals can plan their future actions without fear of problems in their jurisdictions of permanent or tax residence.
The only drawback is the limited number of double taxation agreements (DTAs). These have only been concluded with the United Kingdom and the CARICOM countries (Caribbean Community, a community of 15 member states and 6 associate members).
If a commercial project depends on tax incentives and the possibility of legally reducing the tax burden, then choosing Grenada requires consideration of all the pros and cons of such a move. In cases where this task is not a priority or can be achieved using other legal instruments, the situation changes. An offshore company in the Grenada will provide a very good combination of features with a low or zero tax burden. Therefore, the jurisdiction can be called one of the priority areas for launching cross-border projects, as it has no significant limitations or disadvantages.
Pure offshore jurisdictions in the realities of the digital economy, transparency and the fight against illegal financial flows can no longer offer unrivalled conditions for doing business. For example, there is no capital gains tax in Grenada, and there are no other mandatory levies. However, this fact alone does not make the jurisdiction one of the best places to register a company.
The main disadvantage of non-resident status is higher tax rates, which apply to income earned in Grenada itself. Given the limited list of countries with which DTAs have been signed, the scope for real application of this business format is relatively small.
Personal income tax rates and calculation rules are the same for residents and non-residents: 10% on the first XCD 24,000 and 28% on the amount exceeding that. The situation is similar with social security contributions: 5% of salary. Tax is levied on any income (salary, small or private business) received in Grenada itself.
Other taxes and fees for individuals:
To register a business in Grenada, one of two legal forms is most often used: LLC (Limited Liability Company) and IBC (International Business Company), which is traditional for offshore jurisdictions in the Caribbean region. The second option has become the de facto standard for offshore businesses, but it has a potential drawback: a ban on any commercial transactions with partners from the country of registration.
Corporate taxes in Grenada:
Grenada is a regulated offshore jurisdiction that complies with generally accepted standards of transparency, anti-money laundering and tax base erosion. All aspects of doing business are described in detail in the corporate legislation. The basic regulatory document is the Grenada Companies Act (Chapter 58A), adopted in 1994. It establishes the basic corporate rules relating to the articles of association, company name, registered office, structure, licensing requirements and other matters.
What regulations and rules are important when registering a business in Grenada and conducting commercial activities there?
Complete anonymity is impossible to achieve in today’s world. The main reason is global trends towards deoffshorisation and transparency, control of financial flows and the intensifying fight against tax violations. All offshore services in Grenada, including company registration and opening corporate accounts, are provided in accordance with these requirements, and any attempt to circumvent them is considered a very serious violation.
However, this does not mean that all information about the business and its organisers automatically becomes publicly available. Like other offshore zones in the Caribbean, Grenada has created a comfortable environment for entrepreneurs that does not conflict with current anti-money laundering trends. You will be able to conduct legal business with maximum confidentiality. The conditions offered by other offshore jurisdictions are usually worse or do not comply with modern principles of transparency.
How is high business confidentiality ensured in Grenada?
Obtaining a second passport is an important element of asset protection and diversification. This opportunity will help with tax planning, simplify cross-border business operations and significantly reduce the risk of financial losses.
Obtaining a Grenadian passport greatly simplifies the process of opening bank accounts abroad. Citizens of this country gain access to reliable international financial institutions, including banks in the Caribbean, Europe, Asia and the Middle East. Grenadian citizenship increases the level of trust from banks, as the country is included in the list of jurisdictions with a transparent regulatory system. This allows investors and entrepreneurs to go through verification procedures (KYC/AML) faster and use a wide range of services, from multi-currency accounts to international investment instruments.
A second passport from Grenada is one of the most affordable among similar offers from countries with CBI (Citizenship by Investment) programmes. The entry threshold is from £$ 235,000, and the basic requirements are reasonable and easy to meet. There are two main immigration routes: investment in the Grenada National Transformation Fund (NTF) and investment in real estate.
Basic financial conditions through a non-refundable contribution to the National Transformation Fund:
Persons included in the application
Minimum expenses
One applicant, family of 4
$235
Additional for each dependent (family member — parents, grandparents aged 55 and over, children)
+$25,000
Another additional dependent (same conditions)
+$50
Additional dependent (brother or sister)
+$75
General terms and conditions for financial participation in the Grenada Citizenship by Investment Programme (project must be approved by the government):
Additional fees and commissions:
Type of mandatory payment
Investments in Grenada real estate
State duty
$50,000 — family of 4
$25,000 — each dependent (second parent, grandmother or grandfather over 55 years old, child);
$50,000 — second parent, grandmother or grandfather under 55 years of age;
$75,000 — additional dependent (brother or sister)
Application processing fee
Similar
Comprehensive background check for each candidate
Same
Application submission
Interview
Immigration law does not make any legal distinction between citizens who have obtained status under Grenada’s CBI programme and those who have chosen one of the traditional routes (by birth, by descent, through naturalisation). Given the reasonable financial requirements and good conditions for living and doing business, this option can be considered one of the most attractive in terms of basic characteristics.
The main advantages of the Grenada citizenship by investment programme:
All offshore jurisdictions offer similar conditions for starting new commercial projects. There are differences, but they are mostly insignificant and have little impact on business overall. An offshore company in Grenada is an exception to the general rules. Some opportunities (such as obtaining an E-2 visa to the United States) are unique, while others are rare or subject to additional restrictions. Combined with a good balance of basic characteristics, doing business in Grenada has become the “gold standard.”
Who would be interested in doing business in Grenada:
There are virtually no restrictions on business activities (except for the risks associated with double taxation due to the short list of DTAs). Offshore companies in Grenada are most often registered for commercial activities in tourism, agriculture, financial services, corporate and residential real estate, construction, and food processing.
Registering a business in Grenada is a promising and potentially profitable project. Companies operating in this jurisdiction enjoy comfortable and favourable conditions, taking advantage of numerous opportunities for legal tax optimisation. One of the basic advantages is asset protection in Grenada, which is a critical factor for investors and wealthy individuals.
The jurisdiction has a well-developed corporate and financial services sector. Offshore services in Grenada are provided with transparency and legal certainty, which ensures their high quality. The banking sector is well developed, and the national currency, the East Caribbean dollar, is stable, which significantly reduces the risks associated with long-term business projects.
Grenada’s CBI programme is aimed at a wide range of businesspeople, investors and individuals interested in obtaining a second passport from a reputable and stable jurisdiction. The minimum investment is 235,$ , and the administrative requirements for applicants are quite reasonable.
We will take care of all legal procedures related to the registration of an offshore company in Grenada. All-inclusive cooperation is possible. We offer a wide range of additional services (opening a corporate account, visa support, complex asset protection and diversification projects, etc.). More detailed information on this topic is available during an individual consultation.
Additional tax obligations may arise in your country of citizenship or permanent residence. In Grenada itself, there is a property tax, the rate of which depends on the type of property and does not exceed 0.8% per annum. The amount payable consists of two parts — land tax and building tax.
Current rates:
There are two possible options. The first is to act independently, in which case you will need to select a registered agent, which is a mandatory requirement under the law. The second is to work with a reliable business service provider who will take care of the main legal formalities. In the first case, you will be able to save a little money. In the second case, you can complete the registration faster and launch a complex project that differs from the standard one.
The main steps will be the same:
Unlike other offshore jurisdictions, the form of the articles of association of a legal entity is standardised and does not leave much room for manoeuvre.
The minimum information that must be included in the articles of association:
Please note that the articles of association submitted for registration must be signed by all founders.
There is no single correct answer. The choice for each specific case should be based on an analysis of all available factors — the actual ownership structure, the objectives set, the acceptable level of personal liability, the possibilities for scaling up, and the availability of additional sources of financing.
The following forms of business are permitted in Grenada:
We will work with you to find a customised solution for your immigration, second citizenship, business, tax and other needs.
Grenada Citizenship
Offshore companies
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