Grenada Offshore Company
Under the Grenada International Company Act, investors can choose one of three forms of offshore companies: the sole proprietorship, the partnership or the limited liability company. Of these three types of offshore companies offered in Grenada, the limited liability company is in fact the most commonly used offshore company.
The primary objective for incorporation of an international business company such as a Grenada offshore company is to legally reduce taxes, and the offshore company is ideal for tax planning and wealth management. From business services aspect, the Grenada offshore company is used as a legitimate enterprise providing services, used for other business transactions in a tax-free environment.
Grenada offshore companies benefit from tax exemption on all international profits or income earned outside Grenada. Additionally, there is no withholding tax, companies do not pay tax on capital gains, inheritance, or gifts acquired through death or succession. The tax exemptions applied to Grenada offshore international offshore companies is guaranteed for a 20-year period, commencing at the date of incorporation.
Incorporation of Grenada offshore corporations is relatively fast, whereby a Grenada offshore company can be formed, registered and ready for use in as little as five days. The laws for Grenada international company formation specifies that the incorporation process must be conducted by a Grenada offshore service provider, or the “agent”. This agent is normally a company that is licensed and authorized by the Government agency, and offers incorporation and maintenance services for Grenada international corporations.
Following the laws, in addition to having a resident agent, all Grenada offshore companies must have a local registered address in Grenada. All formal communication for that Grenada offshore company is sent to this registered address. The prescribed agent would act as the recipient and registered address for the Grenada offshore company.
Grenada international companies can be incorporated with a single shareholder and a single director (who can be the same person or a legitimate company; Grenada offshore laws allow companies to use corporate directors and shareholders.
The nationality or residence status of the beneficial owners, directors or shareholders does not factor into incorporation requirements. Persons of any nationality can own Grenada offshore companies. Details of the beneficial owners, directors and shareholders are not part of the public record.
While there is no specific minimum capital requirement, the standards authorized share capital is US$50,000. Permitted share types are: registered shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights.
All Grenada exempt corporation s must appoint an official Company Secretary. that can be a corporate body or an individual.
The filing requirements for Grenada International Companies are minimal; there is no requirement to file audited account, no requirements to file annual returns with local tax authorities. Actually, the Grenada offshore company is only required to keep financial records that reflect the company’s financial position.
There is no requirement for a General meeting and meetings of the directors and shareholders can be held in any country by telephone or other communication devices.
Regulation and governance of Grenada international companies is sanctioned under the International Companies Act.
In order to incorporate a Grenada offshore company, a Memorandum of Association and the Articles of Association must be prepared containing the following information:
- The name of the proposed Grenada offshore company
- The registered address
- The name of the appointed agent
- The purpose for forming the Grenada offshore company
- The authorized share capital of the company and the currency in which the authorized share capital will be issued
- The types of shares to be issued
- The number of shares to be issued
- The names and address of company shareholders
- The names and addresses of the company shareholders
- The names and addresses of the company directors
- The rights, powers, limitations and voting rights attached to each type of share
- The by- laws of the company
The name of a Grenada international offshore company must end with one of the following words or its appropriate abbreviation; Limited, incorporated, Sociedad Anonima, Corporation. Grenada offshore Corporations may incorporate words such as Bank, Assurance, Insurance, Savings, Mutual Funds, Royal, Trust, Investment fund, Trustee only if a special license is issued.