Good to know
Good to Know
- There is no legal requirement to have a Grenadian co-owner, partner, or sponsor — 100% foreign ownership is permitted for standard company structures.
- If you go the offshore/IBC route for a business that only serves clients outside Grenada, you get a long tax-exemption period, but the trade-off is that an IBC generally cannot conduct business with parties inside Grenada itself.
- Whichever structure you choose, you'll need a genuine physical registered-office address in Grenada — a P.O. Box or an address outside the country won't satisfy CAIPO's requirements.
- Budget for a registered agent (mandatory for IBCs) and possibly a local lawyer, since most cited 'company formation' cost figures from formation agencies bundle in professional fees on top of the government's own name-search and filing fees.
- Plan on roughly two weeks for straightforward company registration, longer if your business activity needs a sector-specific license (e.g. tourism, financial services).
- Grenada's currency (the Eastern Caribbean Dollar, XCD) is pegged at a fixed rate to the US dollar, so exchange-rate risk on local tax and fee figures is minimal.
- If you actually want to run a walk-in business in St. George's (a café, dive shop, guesthouse, etc.), the popular offshore 'IBC' structure is not a workable shortcut — it's legally barred from doing business inside Grenada and can't own local real estate, so you'd need a domestic company or branch instead.
- Registering as a simple sole proprietor is the cheapest, fastest way to start freelancing legally, but it comes with unlimited personal liability and does not by itself grant a foreigner the right to live or work in Grenada — that's a separate visa/work-permit matter.
- Companies (unlike sole proprietors) are generally expected to submit audited or reviewed financial statements with their annual tax return, so budget for a local accountant from day one.
Corporate Tax
- Standard Rate Note
- Most current sources (2025–2026) cite a flat 28% corporate income tax rate in Grenada, applied differently depending on residency status.
- Incentives
- Businesses in sectors like tourism and manufacturing may access tax holidays, customs-duty exemptions, or a reduced VAT rate through government incentive schemes (e.g. via the Fiscal Incentives Act) — these require a separate application, typically through the Grenada Investment Development Corporation.
- Resident Companies
- A company is a tax resident if it is incorporated in Grenada or its central management/head office is located there. Resident companies are taxed on profit from all transactions (effectively worldwide profit).
- Non Resident Companies And Branches
- Non-resident companies (including a registered branch of a foreign company) are taxed only on profit earned from Grenada-sourced activity, not on foreign-sourced income.
VAT
- Reduced Rate Note
- A reduced 10% VAT rate applies to hotel accommodation and diving-company services; mobile-operator services are charged 20%.
- Standard Rate Percent
- 15
- Registration Threshold
- EC$300,000
Sourced from a non-government tax-guide aggregator, not directly confirmed on an official IRD page — treat as indicative, not certain.
Withholding Tax
- Rate Percent
- 15
- Applies To
- Dividends, interest, and royalties paid to a non-resident company or individual.
Filing Obligations
- Losses
- Tax losses can generally be carried forward to offset future taxable profits.
- System
- Corporate tax returns are filed through the G-TAX online system administered by the Inland Revenue Division (IRD).
- Deadline
- Annual returns are due within 90 days after the end of the company's accounting/fiscal period.
- Documentation
- A company return must be accompanied by a financial statement; companies are generally expected to submit audited or reviewed financial statements alongside the corporate tax return.
Annual Business Levy Stamp Tax
- Description
- A separate annual tax on gross business receipts (referred to as Business Levy / Stamp Tax by the Inland Revenue Division), distinct from the profit-based corporate tax.
Tiers
EC$30,000–EC$100,000/year
- Rate Percent Of Gross Receipts
- 0.25
over EC$100,000/year
- Rate Percent Of Gross Receipts
- 0.5
under EC$30,000/year
- Minimum Tax
- EC$100
Structure Options For A Foreigner
Sole Proprietor / Freelancer
- Taxation
- Taxed under personal income tax rules rather than the flat corporate rate, so profit is taxed progressively rather than at a flat 28%.
- Liability
- Unlimited personal liability — the owner and the business are legally the same person.
- Who Its For
- An individual foreigner billing clients directly (e.g. remote consulting, freelance services) without needing a separate legal entity.
- Admin Burden
- Lowest — no requirement for a board, registered agent, or audited financial statements.
- How It Works
- A foreigner can register as a sole trader. If trading under a name other than their own legal name, that business name must be registered with the Grenada Financial Regulatory Commission (GFRC); the business/individual must also register for tax with the Inland Revenue Division.
Limited to the company's share capital.
- Taxation
- Subject to the standard corporate tax regime described above (28% on relevant profit) plus VAT and the Business Levy if turnover thresholds are met.
- Structure
- Domestic Limited Liability Company
- Who Its For
- A foreigner actually operating a physical local business in St. George's (shop, guesthouse, dive operation, restaurant, etc.).
- Admin Burden
- Higher — annual corporate return through G-TAX with audited/reviewed financial statements, registered-agent fees, and CAIPO annual renewal.
- How It Works
- Governed by Grenada's Companies Act. Requires a minimum of one director/shareholder with no nationality restriction, but must appoint a licensed local registered agent and maintain a registered office/physical presence in Grenada. Must be registered with the Corporate Affairs and Intellectual Property Office (CAIPO).
International Business Company (IBC)
- Taxation
- Exempt from Grenada corporate tax and VAT as long as no income is earned inside Grenada; a foreigner who is themselves tax-resident elsewhere (e.g. US citizens) may still owe tax on that income in their home country.
- Who Its For
- A foreigner whose income is entirely earned outside Grenada (e.g. an online business with no Grenada clients) and who is not trying to operate a storefront or local service business in St. George's.
- Admin Burden
- Low — no requirement for audited accounts or annual general meetings, but still requires a registered agent and annual renewal fee.
- How It Works
- Formed under the International Companies Act, 2002. Can be 100% foreign-owned, needs only one director and one shareholder, no minimum share capital, and shareholder details are not part of the public register.
- Restrictions
- An IBC is explicitly not intended for business conducted within Grenada and is prohibited from owning Grenada real estate — it is not a substitute for a local operating company.
Branch / External Company
- Taxation
- Taxed as a non-resident company, i.e. only on profit sourced from Grenada.
- Liability
- Not a separate legal entity — the parent company remains legally and financially responsible for the branch's activities.
- Who Its For
- An existing foreign company wanting to operate directly in Grenada under its existing name, without incorporating a new local entity.
- Admin Burden
- Ongoing annual reporting and tax filing obligations in Grenada in addition to whatever the parent company owes in its home jurisdiction.
- How It Works
- Registered as a branch/external company with CAIPO under Part XIX of the Companies Act; must also register with the Inland Revenue Division to obtain a Tax Identification Number (TIN).
Incorporation Process And Requirements
Registrar
- Name
- Corporate Affairs and Intellectual Property Office (CAIPO)
- Address
- Mt. Wheldale Gap, Upper Lucas Street, St. George's, Grenada
- Official Link
- https://gov.gd/caipo/corporate-section
- Parent Ministry
- Ministry of National Security, Public Administration, Home Affairs, Information & Communications Technology
Typical Cost
- Cost Caveat
- The figures above (name search/reservation) are current official CAIPO fees; the full-company-formation cost figures come from an older business-facilitation source and may not reflect current CAIPO filing fees or private legal/registered-agent fees, which add materially to total cost, especially for IBC/offshore structures.
- Business Name Search Fee
- EC$5.00
- Business Name Reservation Fee
- EC$25
- Simple Business Name Registration Total
- EC$38
Total to register a sole-proprietor style business name only (not a full company)
- Full Company Incorporation Local Registrant
- EC$3,696
- Full Company Incorporation Foreign Registrant
- EC$4,990
Taxation Context
- Corporate Income Tax Rate Note
- Sources disagree on the flat corporate tax rate for regular resident companies — some cite 28%, others 30% — so treat this as approximate and confirm with the Inland Revenue Division before filing.
- Ibc Tax Exemption
- A Grenada IBC generating total income from outside Grenada owes no corporate tax, income tax, withholding tax, dividends tax, or capital gains tax, and Grenada guarantees these exemptions for at least 20 years from incorporation.
Typical Timeline
- Business Name Only
- About 8 days for a simple registered business name (four procedures).
- Bank Account Opening
- Opening a bank account and depositing start-up capital typically takes 7-14 days.
- Full Company Formation
- Around 12 days for full company formation, whether the registrant is local or foreign.
- General Characterization
- The business registration procedure in Grenada is described by formation-service providers as standardised and not involving significant costs or time.
- Permits And Licenses If Required
- If permits and licenses are required, allow an additional 30 days.
Incorporation Steps
- 1. Name search and reservation with CAIPO to confirm the proposed company/business name is available and compliant.
- 2. Prepare and submit Articles/Memorandum of Incorporation (or, for a branch, a Notice of Directors form and parent company's Certificate of Incorporation) to the Registrar of Companies at CAIPO.
- 3. CAIPO issues a Certificate of Incorporation with a registration number once the filing is approved.
- 4. Register for tax with the Inland Revenue Division (IRD) to obtain a Tax Identification Number.
- 5. Register with the National Insurance Scheme (NIS) for social security.
- 6. Obtain any sector-specific business license or permit if the activity requires one (e.g. regulated sectors like banking, insurance).
Step Detail Citations
- Articles Filing
- To incorporate a company, one or more individuals must sign and submit the articles of incorporation to the Registrar of Companies, and the names of all incorporators are recorded in the company's register of members promptly after registration.
- Social Security
- Every business operating in Grenada is required to register with the National Insurance Scheme within seven days of commencement of operations.
- Tax Registration
- Every business operating in Grenada is required to register with the Inland Revenue Department within one year of commencing operations, presenting a copy of the Business Registration Certificate, proper identification, and a completed Tax Registration Form; the Tax Identification Number is issued within 2-3 days.
- Name Search And Reservation
- To search and register a business name, you gather an application form from CAIPO; the search fee is XCD 5, and reserving the name costs XCD 25, with the name reserved within three days if everything is in order.
Entity Types Available
Domestic Company / Limited Liability Company (LLC)
- Notes
- Requires at least one shareholder, at least one director (natural or legal person, no residency requirement), and at least one company secretary; there is no minimum capital requirement; a registered office and registered agent in Grenada are required.
International Business Company (IBC)
- Notes
- The main difference between a resident limited liability company and the IBC is that the IBC can only engage in economic activities originating outside Grenada. There is no minimum authorized or paid-up capital requirement for an IBC at the point of incorporation.
Branch / External Company of a Foreign Parent
- Notes
- External companies (foreign corporations wishing to carry on business in Grenada) are governed by Part XIX of the Companies Act and must register with local authorities before starting any commercial activity, filing corporate documents from their country of origin and appointing a local lawyer to receive legal notices.
Sole Proprietorship / Registered Business Name
- Notes
- This is the simplest form, giving the owner full control but unlimited liability, and requires registering the business name with CAIPO.
Local Partner Or Sponsor Requirement
- Details
- Foreigners are not legally required to have a local co-owner or sponsor to incorporate. Foreigners in Grenada are allowed to have 100% ownership, and the country actively supports Foreign Direct Investment and does not impose restrictions on ownership and control. A foreign national can serve as the sole director of a Grenada company, with no residency or nationality requirement imposed on directors.
- Mandatory Local Partner
- No
Mandatory Local Presence Requirements
- A registered office with a physical Grenada address (a P.O. Box alone is not sufficient; a virtual office tied to a real physical address is acceptable).
- For International Business Companies (IBCs) specifically, a licensed registered agent in Grenada is mandatory and cannot be an informal intermediary.
- For branch/external companies of a foreign parent, a local lawyer or agent must be appointed to receive legal notices on the company's behalf.
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.
- 1.gov.gd
More About St. George's
Data last updated July 2026 · Verify anything important.