Grenada is one of the region’s most attractive destinations for investing. Investment opportunities can be found within several sectors to include Tourism, Agribusiness, Education, Health and Wellness, Information Communication Technology, and Energy.
Doing Business in Grenada
Whether you are considering starting a business or have already invested, you can qualify for a range of investment incentives that will be beneficial to your investment both in the short and long run.
Grenada has undergone a review of its incentives programs and has revised its Investment Incentive Framework to one that is streamlined, transparent, performance-based, and compliant with international laws and regulations.
How Incentives Work
Investors are free to operate in all fields of lawful economic activity and should not engage in actions that are prejudicial to national security or detrimental to the natural environment, public health or the national culture. CARICOM nationals/companies are accorded Rights of Establishment and can establish a business and import their managerial, supervisory or technical staff. Applications for Rights of Establishment must be made through the Ministry of Foreign Affairs.
Supporting documentation to accompany the application is the Business Name Certificate/Certificate of Incorporation and Statement of Particulars, proof of CARICOM nationality, police certification of good character from home country, proof of financial resources, and signed lease agreement for the premises of occupation in Grenada.
If the CARICOM national intends to establish his/her business and move with managerial, supervisory or technical staff then, the business owner must: submit a letter to the Ministry of Foreign Affairs requesting free movement for the relevant members of staff, submit a copy of the employment contract for each staff that will be moving, a list with spouses and dependents, a valid passport, marriage certificate (where applicable) and police record for each staff member.
Once your business is set up, you can avail of a wide range of incentives built to help you grow your investment. Our new Investment Incentives Regime aims to improve the business environment by streamlining its investment procedures to enhance Grenada’s attractiveness as an investment destination. Investment incentives will be awarded to qualifying investments projects under the following legislations:
- Income Tax Act
- Property Transfer Tax Act
- Customs Act
- VAT Act
- Excise Tax Act
- Custom Service Charge Act
Sole Proprietor or Partnership
Every person who intends to operate a business in Grenada is required to register a business name with the Supreme Court Registry. That person shall apply for registration of the business by submitting a Statement of Particulars of the business to the Registrar which includes the following:
- The contact details of the applicant
- The proposed business name
- The nature of the business
- The address of the business
- The ownership of the business
- The date of commencement of the business
- The Business applicant must not be less than eighteen (18) years of age
- The prescribed fee for registration is XCD$25.00
Company: profit/not for profit
One or more persons may incorporate a company by signing and sending the following documents to the Registrar of Companies:
- Request for Name Search and Name Reservation
- Articles of Incorporation
- Notice of Directors
- Notice of Address
The Attorney General must approve the Articles of Incorporation of a non-profit company prior to its registration.
- Request for name Search and Name Reservation – XCD $10.00
- Submission of Articles of Incorporation for-profit – XCD $1,200.00
- Submission of Articles of Incorporation not for profit – XCD $100.00
Establishing and operating businesses in Grenada may require business owners to obtain permits and licenses. Permits and licenses most frequently needed include Land Development Permit, Alien Landholding License, Hotel/Guest House License, Refreshment House License, Building Contractor Permits, and Trade Licenses among others. To obtain these permits or licenses, applications must be made to the relevant authorities – Physical Planning Unit, Prime Minister’s Office, and Ministry of Finance.
Below is a list of relevant authorities for the various types of permits and licenses:
- Incentives – GIDC
- Alien Landholders License – PMO
- Work Permit – Ministry of Labour
- Building Permit – Physical Planning & Development Authority
- Trade License – Ministry of Finance
- Health & Safety Inspection – Ministry of Health
Every business operating in Grenada is required to register with the Inland Revenue Department within one (1) year of commencement of the business operations. The following is required:
- Business Registration Certificate
- Form of Identification (Driver’s License etc)
- Completed Tax Registration Form
Property Tax is the charge placed by Government on Real Property. The Tax is an Ad valorem Tax i.e. The Property is assessed at Market Value and a Taxable Rate is applied based on the Land-use Classification. The valuation takes into account location, land prices in the area, development potential, type of land, size of land (and other relevant factors), and the condition of the building on the property. Property tax is borne and payable by the owner and or occupiers of the property.
Property Transfer Tax
This is the tax paid for the transfer of property or estates. Aliens wishing to purchase property in Grenada must apply to the Prime Minister’s Office for a license to hold property. Citizens selling property will pay a 5% tax on the transfer of property. A non-national vendor selling property will pay a tax of 15% and a 10% tax is applicable for a non-national purchaser who buys property or real estate.
Corporate/Personal Income Tax
These are the taxes levied on the chargeable income of individuals, corporations, and other legal entities. Corporations, trustees, sole traders, partners within partnerships, and all employees who earn in excess of XCD $3,000 monthly or XCD $36,000 per annum. The taxes are due within 90 days at the end of each financial year.
All businesses operating in Grenada are required to register with the National Insurance Scheme within seven (7) days of commencement of the business operation. Employers must register and pay contributions on behalf of their employees – registration for an employee must occur within four (4) days of commencing employment. An employer’s contribution is 6% of the gross earnings of an employee while the employee’s contribution is 5% thus totaling 11% of social security contributions.
Step 1 – Complete the Business Deposit Account Application in full.
- For Corporations, Partnerships and Sole Owners information required include: – the principal(s) and their interest.
– Identification/Information for all owners, signing officers, and directors including Full Legal Name, Date of Birth, Occupation and 2 Mandatory pieces of Identification.
– written reference from business’ existing financial
Step 2 – Complete a Collection and Use of Information Form for each individual owner (principal).
Step 3 – Present the application at the branch.
Two pieces of original identification for owners, signing officers, and directors including one with a photo. We will need the signing officers to attend the branch to verify identification.
Additionally, the following documents are required:
For Incorporated Company:
- Certificate of incorporation
- Memorandum and Articles of Association (to include list of officers and directors)
- For both of the above, original documents are required (to be photocopied and returned to you) OR certified by known/reputable law firm.
- Registrar’s Certificate of Good Standing (or equivalent) is required when opening a new account for a previously existing company
- Company’s annual statement
- Original Partnership agreement (to be photocopied and returned) OR copy certified by known law firm
For Sole Ownerships:
- Business Name registration (if using a business name)
Every application for fiscal incentives must be accompanied by the following:
- The Applicant’s Business Name Registration Certificate and statement of particulars. If applicant is a company, certificate and articles of Incorporation and notice of directors must be submitted
- Detailed information on the owner(s), (directors if a company) providing name, nationality, % of interest owned, profession/occupation, business history, criminal history, and other business interest
- A prospectus of the proposed venture setting out the plan of the business, financial projections and sources of financing
- Proof of project funds in the form of a commitment letter from the funding bank stating the purpose of the loan, the amount of funds approved, the terms and draw down schedule and/or bankers letter detailing assets deposit
- A detailed time bound implementation plan and construction schedule
- List containing description and value of all capital goods (including vehicles), raw material and packaging material to be used in operation. The intended use of each vehicle must be disclosed
- Licenses, permits, preliminary/final drawings, etc., already acquired
- A non-refundable processing fee
The fee must be paid by cash or cheque to the Grenada Investment Development Corporation (GIDC). Fee schedule is shown below:
- Investment to EC$249,999 – EC$ 287.50
- Investment of EC$250,000 to EC$499,999 – EC$ 1,150
- Investment of EC$500,000 to EC$1,499,999 – EC$ 1,725
- Investment of EC$1,500,000 to EC$2,999,999 – EC$ 2,875
- Investment EC$3,000,000 and over – EC$ 5,750
All fees are Value Added Tax inclusive of 15%
The business plan must contain the following information:
- An Executive Summary of no more than two (2) pages
- An overview of the business, its history (including concessions granted), its principle business activity(s), size and scope of operation, its location
- A detailed description of products and services to be produced
- Marketing plan detailing the target market for the products or services and how the business intends to successfully reach that market
- Management plan detailed the key management personnel and their background, technical, and non-technical skills required for the business
- Financing plan including actual and projected financial statements for at least three years and the assumptions to the financial projections
Completed applications must be submitted to the:
Chief Executive Officer,
Grenada Investment Development Corporation
Frequente Industrial Park
St. George’s, Grenada
Incomplete Applications will not be processed.
Trusted by the best in the business
Unique Vacations Limited (UVL) is an affiliate of the worldwide representative for Sandals and Beaches Resorts. UVL launched its Grenada operations in 2015, opening a customer care center at the Frequente Industrial Park, which is managed by GIDC.
“I would certainly advise any investor to consider Grenada, this country is filled with investment opportunities. There is warm weather, a great pool of talent, and a government that is leading the way in creating an investor-friendly environment for all businesses to flourish. Our experience so far has been a positive one and something that we will be looking to build upon over the coming years!”
– Unique Vacations Limited
The Renegade Rum Distillery is located in Conference, St. Andrew. Construction on the rum distillery commenced in 2019 and in September 2020, the first cask of Renegade Rum was filled. Using CaneCo’s premium Grenadian-grown sugar cane, the rum distillery is expected to produce up to 1 million liters of spirit each year.
“Renegade Rum Distillery first approached the Grenada Industrial [Investment] Development Corporation in mid-2016 to seek their assistance with their planned investment of US$50 million in a state of the art rum distillery, and the reintroduction of sugar cane as a major crop for Grenada. They quickly assisted in introducing us to the officials at the Ministry of Agriculture and gave us details of what government assistance could be forthcoming for our project. While the negotiation with the Government took longer than expected, the employees of GIDC helped
to keep us connected and were the glue that held the project together.”
– Renegade Rum Distillery
Chanson D’Argent Holdings Development Limited is the developer of The Point at Petite Calivigny, a boutique luxury wellness private residence club designed to promote rest and relaxation. The Point’s 3 villas and 12 condominiums give residents access to all-around breathtaking views, 2 large community pools, and a state-of-the-art gym and wellness center.
“Real Estate Development is a difficult practice with a myriad of moving parts and challenges. The success of any project is a product of intelligent and experienced planning coupled with a supportive and knowledgeable team. Though my company and the GIDC are separate entities, I consider them a part of my team integral to the success of having been able to complete my development in record time. Their enthusiasm, professionalism, entrepreneurship, and ability to respond quickly continues to be a blessing and one of the main reasons that I will continue to develop real estate projects in Grenada.”
– Christofer Ashby Ph.D., Chanson D’Argent Holdings Development Limited