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St. Vincent & Grenadines Economic Substance & Other Important Facts
St. Vincent & Grenadines Business Companies (BCs) must mandatorily file a Notice of Directors and Members now with the Financial Services Authority (“FSA”). Once filed, Directors and Members information go on to the public registry.
Each time there is a change to the directors or members including a change of name or change of address of any director or member such information must be filed with the FSA.
There is a fine of US$20,000 for failing to file changes with the FSA.
Each BC must file a tax return with the Inland Revenue Department ("IRD") of St. Vincent & the Grenadines within three months of the BC's financial year end commencing in 2022.
If a company's financial year end is December 31, 2021 then the Company must file a tax return with the IRD by March 31, 2022. The period to which taxes are applicable is July 1, 2021 to December 31, 2021.
If a company's financial year end is June 30, 2022 then the Company must file a tax return with the IRD by September 30, 2022. The period to which taxes are applicable is July 1, 2021 to June 30, 2022.
There were no taxes applicable before July 1, 2021 and taxes are only applicable to income earned in the jurisdiction.
Each BC which is a large company must file financial statements with the FSA on an annual basis. A large company is one that has assets greater US$744,000.00 or earns revenues greater than US$1,488,000 per year.
Each BC which is a small company must file a Declaration of Solvency with the FSA on an annual basis. A small company is one that has assets less than US$744,000 or earns revenues less than US$1,488,000 per year.
The financial statements or declaration of solvency must be filed within 5 months of the balance date of the company. Balance date in relation to a business company, means-
(a) the close of 31 December; or
(b) such other date as the board by resolution adopts as the balance date of the company, with the approval of the Registrar:
BCs involved in any of the nine (9) activities mentioned below are obligated to comply with economic substance requirements:
1. Banking business
2. Distribution and services centre business
3. Finance and leasing business
4. Fund management business
5. Headquarters business
6. Holding entity business
7. Insurance business
8. Intellectual property holding business and
9. Shipping business
Regulations for the Economic Substance Act and the specific forms have not yet been finalized
All Business Companies are required to keep financial records according to the Business Companies (Amendment and Consolidation) (Amendment) Act, 2018. See attached section 72 (1) of the Act and please read it carefully as there are substantial fines for not complying with these requirements.
The financial records of a company must be kept either at the Registered Agent's office or such other place as the directors determine by resolution. Companies which keep hard copies of their financial records outside of St. Vincent and the Grenadines will be required to keep financial records at the registered office that disclose with reasonable accuracy the financial position of the company at intervals not exceeding three months.
On the 12th January 2023, the Financial Services Authority (FSA) of St. Vincent & the Grenadines (SVG) has published a formal notice regarding new requirements for SVG offshore companies engaged in Forex trading and Brokerage businesses.
All these companies must, by March 10, 2023, submit a legalised copy of the appropriate license/approval from the jurisdiction where their business activities are conducted. If an offshore company does not need a license to conduct Forex/ Brokerage activities in a particular jurisdiction, the company can provide the FSA with a confirmation letter issued by the competent authority in that jurisdiction.
Offshore SVG companies that fail to comply with these new requirements will be subject to sanctions in accordance with the SVG FSA Act.
No government fees will be incurred for these new filings in SVG.
All Registered Agents and Trustees which are licensed in SVG should apply AML and KYC/DD practices when on-boarding clients who wish to set up offshore companies in SVG.
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