Doing Business in Grenada

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:

1. Incentives – GIDC
2. Alien Landholders License – PMO
3. Work Permit –  Ministry of Labour
4. Building Permit – Physical Planning & Development Authority
5. Trade License – Ministry of Finance
6. 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:

1. Business Registration Certificate
2. Form of Identification (Driver’s License etc)
3. Completed Tax Registration Form

Property Tax
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. 

Identification: 

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

For Partnerships: 

• 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:

1. 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
2. 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
3. A prospectus of the proposed venture setting out the plan of the business, financial projections and sources of financing
4. 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
5. A detailed time bound implementation plan and construction schedule
6. 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
7. Licenses, permits, preliminary/final drawings, etc., already acquired
8. 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:

1. An Executive Summary of no more than two (2) pages
2. An overview of the business, its history (including concessions granted), its principle business activity(s), size and scope of operation, its location
3. A detailed description of products and services to be produced
4. Marketing plan detailing the target market for the products or services and how the business intends to successfully reach that market
5. Management plan detailed the key management personnel and their background, technical, and non-technical skills required for the business
6. 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.