Good to know
Good to Know
- Most services advertised online as 'St. Vincent company formation' are selling an offshore IBC/LLC aimed at international business, holding, or e-commerce — this is a different product from registering a local company or business name to actually run a shop, cafe, or service business in Kingstown itself, so make sure you're pursuing the right entity type for what you actually plan to do.
- No local partner, local director, or local shareholder is required to incorporate as a foreigner — 100% foreign ownership is permitted for the standard company forms.
- If you plan to hire local staff, remember incorporation is only the first step: you also need to register separately with the Inland Revenue Department and National Insurance Services (NIS).
- Cost quotes for 'company formation' online vary hugely (roughly US$1,000 to US$5,000+) mostly because they bundle different things — pure government fees are modest, but registered-agent, registered-office, compliance, and bank-introduction services add significantly to the total.
- The 'no corporate tax' reputation SVG has online applies specifically to Business Companies/LLCs earning purely foreign-source income — a nomad actually running a business with local Kingstown clients, staff, or premises is taxed like any normal company at 28%, plus VAT obligations.
- You don't need to formally register a business name if you trade under your own legal name as a sole trader — registration with CIPO is only required if you use a different trading name.
- It's worth directly confirming with CIPO or the Ministry of Foreign Affairs whether a foreign national needs a specific trade permit before registering as a sole trader — this isn't clearly documented in public sources.
- Business Companies/IBCs must file an annual tax return every year even when zero tax is owed on foreign-source income — skipping this filing (because 'no tax is due anyway') is a common compliance mistake.
Typical Setup Costs
Business Name Registration (Sole Proprietor/freelancer, Via CIPO)
- Business Name Registration (Sole Proprietor/Freelancer, Via CIPO)
- EC$250
XCD
Business Company (BC/IBC) Annual Renewal, per Commercial Formation Agents
- Business Company (BC/IBC) Annual Renewal, Per Commercial Formation Agents
- EC$270
Domestic Company Incorporation, Agent-quoted Range
- Domestic Company Incorporation, Agent Quoted Range
- EC$4,050
Low end of a commercial-agent-quoted range (roughly USD 1,500–3,000); actual cost varies with share capital and complexity, and is separate from ongoing registered-agent fees.
Other Relevant Taxes
- Property Tax For Businesses
- 5% annually on the market value of company-owned real property
VAT
- Standard Rate Percent
- 15
- Filing Frequency
- Monthly VAT returns, payment due by the 15th of the following month
- Registration Threshold
- EC$120,000
- Note
- Some older sources cite a 16% standard rate from a 2017 change; more recent guidance puts the standard rate at 15%, with a reduced 11% rate for the hotel sector — treat this as needing reconfirmation with the Inland Revenue Department at setup time.
Withholding Tax On Payments To Non Residents
- Dividends Percent
- 15
- Technical Professional Service Fees Percent
- 20
- Note
- Both may be reduced under an applicable double taxation treaty (SVG has DTTs with CARICOM members, the US, Canada, the UK, Denmark, Norway, Sweden, and Switzerland).
Entity Types And Tax Treatment
Sole Proprietorship / Freelancer (Registered Business Name)
- Registration
- Only required to formally register with the Commerce and Intellectual Property Office (CIPO) if trading under a name other than your own legal name; registration must happen within 14 days of starting business.
- Tax Treatment
- Profits are taxed as personal income under the Income Tax Act at individual progressive rates (not a separate corporate rate); owner is personally liable for all business debts.
- VAT Obligation
- Must register for VAT once annual gross sales exceed XCD 120,000 (or XCD 10,000 in a given month); VAT-registered sole traders file monthly VAT returns.
- Description
- Simplest structure. Business is not a separate legal entity — the individual and the business are the same for legal and liability purposes.
- Foreigner Note
- There is no clearly published rule barring foreign nationals from registering as sole traders, but it is advisable to confirm with CIPO or the Ministry of Foreign Affairs whether a trade license or immigrant business permit is additionally required for non-citizens before starting.
Domestic (Local) Company / LLC Trading in SVG
- Tax Treatment
- Taxed at the standard 28% corporate rate on SVG-source profits; deductions allowed for ordinary business expenses and capital allowances.
- Foreign Ownership
- No restriction on foreign ownership or control — a company can be 100% foreign-owned, and directors/shareholders do not need to be SVG residents.
- Filing Obligations
- Must file an annual tax return and annual financial statements (or, for smaller entities, a simplified solvency declaration) with the Inland Revenue Department.
- Description
- A separate legal entity with limited liability, intended for businesses actually operating inside St. Vincent and the Grenadines.
Business Company / IBC (Offshore-style Entity for Foreign-source Income)
- Tax Treatment
- Local-source income (if any) is taxed at the standard 28% rate; foreign-source income is exempt from SVG corporate tax entirely.
- Compliance Regime
- Subject to the International Tax Co-operation (Economic Substance) Act, meaning genuine economic substance requirements may apply depending on the activity.
- Filing Obligations
- Must still submit an annual tax return regardless of whether any tax is owed, plus annual financial statements (or a solvency declaration if gross revenue is under XCD 4,000,000 or total assets under XCD 2,000,000).
- Description
- The entity type most commonly promoted to foreign entrepreneurs for international (non-local) business, e-commerce, holding, or trading structures.
SVG Limited Liability Company (LLC)
- Tax Treatment
- Not subject to the Economic Substance Act or standard corporate income tax on foreign-source income by default, but may voluntarily elect to pay a 1% corporate tax in order to qualify for relief under CARICOM double-tax treaties.
- Filing Obligations
- Minimal compared to Business Companies; generally exempt from economic substance reporting when not electing into the 1% treaty-access regime.
- Description
- A hybrid entity under the Limited Liability Companies Act 2008, popular for international holding/trading structures.
Filing Deadlines And Obligations
- Corporate Tax Return Due
- On or around 30–31 March following the tax year (sources vary slightly on the exact day; confirm with the IRD)
- Employer Obligations If Hiring Staff
- Must register with the Inland Revenue Department for a Tax Account Number and with the National Insurance Services (NIS); PAYE withheld from employee salaries must be remitted by the 15th of the following month, with annual PAYE returns due by January 31.
- Annual Financial Statements Or Solvency Declaration Due
- By June for the preceding financial year for Business Companies
Quarterly Advance Tax Payments Due
- March 25
- June 25
- September 25
- December 25
Core Steps
Name search and reservation
- Detail
- A request for name search and reservation (Form 26) is filed with CIPO in advance of incorporation; the form allows for up to three alternative name choices.
Prepare and file incorporation documents
- Detail
- For a domestic company, required documents include the articles of incorporation, notice of directors, notice of registered office, the name reservation request, and a lawyer's declaration.
Certificate of incorporation issued
- Detail
- If documents are in order, the Registry releases a certificate of incorporation after the filing is reviewed.
File bylaws and appoint a secretary
- Detail
- After receiving the certificate of incorporation, the incorporator files the bylaws and a notice of appointment of secretary.
Register with the Inland Revenue Department
- Detail
- The Registrar sends a notice to the Inland Revenue Department once the company is incorporated, and the company must then register with that office (for tax identification and obligations).
Register with National Insurance Services (NIS)
- Detail
- If the company will have employees, it submits a company information form plus a form per employee hired, since the employer's NIS contribution is based on each employee's salary.
(Business Name route) Register at CIPO
- Detail
- Anyone trading under a name other than their own legal name must register that business name at CIPO within 14 days of starting business, filing the application form in duplicate original.
- Step
- (IBC/LLC route) Appoint a registered agent and obtain any required licence
- Detail
- An agent is required to act as the company's official representative, and if operating in certain regulated sectors, a licence from the Financial Services Authority (FSA) may also be required.
Entity Types
Business Name (Sole Proprietorship / Partnership)
- Legal Basis
- Registration of Business Names Act, CAP 111
- Description
- For an individual or partnership trading under a name other than their own legal name.
Domestic (Local) Company
- Description
- Creates a separate legal personality from its shareholders; used for businesses actually operating in SVG.
International Business Company (IBC) / Limited Liability Company (LLC)
- Description
- The standard 'offshore' vehicle marketed to foreigners; used for international trade, holding, e-commerce, etc., rather than local retail/service trading in Kingstown.
Typical Costs
Business Name Registration Fee (CIPO)
- Business Name Registration Fee (CIPO)
- EC$250
Filed in duplicate original at CIPO; processed within 2 working days.
Name Search / Reservation Fee (Form 26)
- Name Search / Reservation Fee (Form 26)
- EC$25
Payable when filing the pre-approval name search/reservation.
XCD
USD
St. Vincent and the Grenadines runs a territorial tax system with two very different tracks: a standard domestic-company/sole-trader track (taxed like a normal Caribbean small business) and an offshore-oriented 'Business Company' (formerly International Business Company/IBC) or LLC track designed for foreign-source income only. Which one applies depends on whether the business actually trades with local clients/customers in SVG or operates entirely outside the country.
Corporate Income Tax
- Rate History
- Reduced from 30% to 28% effective 1 January 2023
- Standard Rate
- 28% flat rate on profits/gains sourced within St. Vincent and the Grenadines
- Territorial Principle
- Foreign-source income earned by an SVG-incorporated entity is generally not taxed locally, provided the company carries on its activity entirely outside SVG and has no SVG-source income
- Notes
- Companies genuinely trading locally in Kingstown (serving local customers, holding local staff/premises) are taxed at the standard 28% rate like any resident company — the well-known 'zero tax' reputation of SVG applies specifically to Business Companies/LLCs earning only foreign-source income, not to businesses actually operating in the local market.
Foreigners in St. Vincent and the Grenadines (SVG) generally choose between two very different paths: (1) registering a domestic/local company or business name with the government to actually trade inside SVG, handled through the Commerce and Intellectual Property Office (CIPO), or (2) forming an offshore International Business Company (IBC) or Limited Liability Company (LLC), which is the more commonly marketed 'St. Vincent company formation' product aimed at international/holding business rather than local trading in Kingstown itself.
Timeline
- Domestic Company
- Certificate of incorporation is typically released about 2 days after documents are filed if everything is in order, with bylaws/secretary filing and tax/NIS registration adding further time; realistic total setup (including bank account) can take from roughly one to a few weeks.
- Offshore IBC LLC
- Registered-agent providers commonly report incorporation completed within 24–48 hours once compliance/KYC documents are received, though this covers only the incorporation step itself, not bank account opening, which typically takes longer.
Other Requirements
Other Requirements
- A minimum of one director is required for an SVG company, who can also act as the sole shareholder, and there is no residency requirement for directors or shareholders.
- No minimum registered/paid-up capital is legally mandated for the offshore company forms, though some formation agents quote a nominal standard authorized capital figure (e.g. around US$1,000) as a customary starting point rather than a legal minimum.
- Directors and shareholders of an IBC/LLC are generally required to obtain a Tax Identification Number (TIN) as part of compliance.
- Opening a corporate bank account is a separate step from incorporation and requires notarized photo ID and proof of address for each account signatory.
Official Registry Link
Local Partner Or Sponsor Requirement
- Status
- No local partner, local director, or local shareholder is mandated.
- Details
- Multiple registered-agent sources state that for the LLC/IBC structure, foreign ownership is permitted without restriction, no local director is required, and there are no exchange controls, and that shareholders, directors and officers may reside anywhere in the world except the USA. A registered agent and registered office physically located in SVG is required as the company's point of contact with the Registrar, but this is a service role, not an ownership or management stake.
AI-generated estimateData refreshed July 2026
Sources cited for this category
These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.
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Data last updated July 2026 · Verify anything important.