iGuide Saint Vincent and the Grenadines

The first step for any investor is to incorporate a company. This is done at the Commerce and Intellectual Property Office (CIPO). There are three available company types:

• External company: allows an existing company that is legally established in another country to carry out business in Saint Vincent and the Grenadines. The personal liability of shareholders is limited to the value of their shareholding.
• Domestic company: establishes a company in Saint Vincent and the Grenadines. The personal liability of shareholders is limited to the value of their shareholding.
• Sole proprietor business: allows an individual or group of individual to carry out business in their private capacity without creating a separate legal personality. Owners are personally liable for the business's liabilities.

Further information on available company types and procedures is mentioned below.

Once incorporated, all businesses are required to enrol at the Inland Revenue and at the National Insurance Service.

All businesses that conduct commercial or industrial activities must apply for a Trader's or Industrial License at the Ministry of Foreign Affairs, Trade and Commerce, in accordance with the The Price and Distribution of Goods Act.

Any investment project with an environmental or social impact requires a environment impact assessment. The process for EIAs is subsumed into the planning process under the Physical Planning Department within the Physical Planning and Development Board (see Land tab). 

The department determines whether an EIA is required and makes the final decision on approval of projects based on the findings of EIA.

With regards to coastal developments, it should be noted that beaches remain public property and public access must be maintained.

Saint Vincent and the Grenadines has an estimated population of 110,000.

The secondary school enrolment rate is 85 percent. 

Post secondary, options within the country include:

• Vocational Technical Institute
• Saint Vincent and the Grenadines Hospitality Institute (SVGHI)
• Saint Vincent and the Grenadines Community College (SVGCC)
• National Centre for Technological Innovation (NCTI)
• University of the West Indies Open Campus (UWI)

Vincentians also have access to the University of the West Indies campuses within the region. The workforce also includes graduates from the US, UK, Venezuela, Taiwan Province of China, Russia and Turkey.

The table below provides an estimate of  the type wages paid to various categories of workers.

The Department of Labour prescribes a minimum wage of between EC$ 5 to EC$ 48 an hour, depending on the category of workers.

The work week is up to six days with a maximum of 8 hours per day.

Prices

Non-wage benefits required to be provided by an employer

Every new employer must register with the National Insurance Service within seven days of employing the first employee. The employer must submit an Application for Registration as an Employer (Form R3) in order to obtain a registration number. Employer and employee contributions are based on insurable earnings, which correspond to all earnings up to EC$51,996 per year. The NIS includes the following benefits:

Sickness benefits

An employee who is between 16 and pension age, has been employed immediately before the illness and who has paid at least 26 weekly contributions, and at least 8 contributions in the 13 weeks before the illness, is entitled to sickness benefits. An amount of 65 percent of the employee's average insurable income will be paid for a maximum of 26 weeks of illness.

Maternity benefits

A pregnant woman between the ages of 16 and pensionable age, who has been employed for at least 30 contribution weeks, and who has paid at least 20 weekly contributions immediately before the date of  the claim is entitled to a maternity allowance of 65 percent of average weekly wage for a period not exceeding 13 consecutive weeks. There is also a maternity grant for pregnant mothers who are claiming on the contributions of her partner's NIS contribution. A one off amount of EC$600.00 is paid to the mother as a maternity grant.

Age benefit

Any person who has attained the normal retirement age, between 60 and 65 depending on date of birth, is provided with reasonable financial support upon retirement. The normal retirement age will progressively increase to 65 by 2028.

Invalidity benefit

This benefit is paid to anyone who has been medically declared an invalid and who is likely to be disabled and is under pensionable age. The invalidity benefit can take the form of a one-off lump sum invalidity grant or a weekly or monthly payment of an invalidity pension of not less than 30 percent of the annual insurable income of the individual (and not greater than 60 percent) paid until the individual attains pension age at which point the invalidity pension would be converted to an age benefit.

Social security contributions

The Saint Vincent and the Grenadines Electricity Services (VINLEC) is responsible for the generation, transmission and distribution of electricity. Electricity on the islands is 220 volts and is generally stable and reliable. Electricity is currently approximately 79 percent from fossil fuels, 15 percent comprised from hydro and 1 percent from solar.

Saint Vincent and the Grenadines is aiming to increase the share of solar to 20 percent and is pursuing the construction of a geothermal facility that would contribute 60 percent by 2021.

Peak time electricity demand is currently 23 MW. It is estimated that geothermal generation has a potential of 250 MW.

Cost of electricity

The Central Water and Sewerage Authority (CWSA), established in 1970, under the revised Central Water and Sewerage Authority Act of 1991, operates as a semi-autonomous public sector enterprise under the Ministry of Health, Wellness and the Environment. It has three main functions in Saint Vincent and the Grenadines:

• Water supply: treatment, transmission and distribution of potable water to domestic, commercial, shipping, and government customers.
• Sewerage: management and operation of two sewerage systems that serve the central business district of Kingstown and the Arnos Vale Housing Scheme respectively.
• Solid waste: treatment of solid waste.

Prices

Saint Vincent and the Grenadines has a stable and reliable telecommunication infrastructure supported by a fibre-optic network. There are two main providers of telecommunications services that include; mobile and fixed telephony and broadband internet services. 

The National Telecommunication Regulatory Commission is the agency responsible for the regulation of the telecommunication providers in Saint Vincent and the Grenadines. 

Prices

Saint Vincent and the Grenadines has a very extensive road network, linking all communities on the island together. A drive to the northern part of the island is very scenic, taking travelers to parts of the interior as well as along the cost. Motorists drive on the left side of the road and the predominant types of vehicles used are left-hand drives.

Argyle International Airport

Saint Vincent and the Grenadines has a vibrant network of 5 airports that consist of three small airports on the Grenadine Isnalds of Bequia, Mustique and Union Island, a modern Jet port on Canouan and a brand new state of the art International Airport at Argyle on mainland Saint Vincent.The airports facilitate reliable local travel as well as limited regional travel in the case of the Grenadines and some Caribbean islands. The Canouan Jetport, apart from facilitating local and regional flights also accommodates some direct flights from specific international gateways. The recently commissioned Argyle International Airport on mainland Saint Vincent is the main airport, that accomodates local, regional and international flights.

Port Kingstown

Port Kingstown, by being the gateway to the commercial seaborne trade of capital Kingstown, handles a wide range of vessel traffic - from deep-sea cargo liner services to inter-island ferries to cruise ships. Cargo traffic is made up of containers and break-bulk goods with a limited amount of cement and lumber. In addition, vehicles - both new and refurbished models from Japan - are shipped in by dedicated car carriers on a monthly basis. Port Kingstown also focuses on inter-island trade with the Grenadines and other destinations. Inter-island vessels are handled at the six-berth schooner basin while passenger/roll-on roll-off vessels use the four-berth ferry terminal.

Port Elizabeth, Bequia

St.Vincent also has a deep-water container terminal just outside capital Kingstown - a purpose-built facility at the Campden Park Industrial Estate, one of the islands main centres of light industry. The terminal has a 100 meter long quay with two approach bridges measuring 50 meters by 60 meters. These bridges allow free circulation of traffic between the quay and the stacking area. Depth alongside is 12.0 meters - deeper than Port Kingstown -  allowing vessels of up to 12,0000 dwt to berth. The stacking area has 540 ground slots with plug-in for up to 12 refrigerated containers.

The four largest islands - Bequia, Mustique, Union Island and Canouan - have all been designated ports of entry in addition to Kingstown and Campden Park on mainland St.Vincent. Port Elizabeth has been declared ISPS compliant, the international code for security of ships and port facilities, in July 2004

Prices

Prices

Prices

The Inland Revenue Department (IRD) is responsible for the  collection of taxes. This department is guided by the Income Tax Act 2009 revised edition CAP 435. The main areas of taxes administered by the IRD are corporate income tax, value added tax (VAT), pay as you earn (PAYE), withholding tax and the climate resilience levy.

A newly registered business or company must must apply for a taxpayer identification number at the Inland Revenue Department.

The fiscal year can be either the calendar year or any 12-month period. 

A number of incentives exist (see Get started tab).

Corporate income tax

VAT

Withholding tax

Climate resilience levy

Personal income tax

Property tax

Customs and Excise building

Customs duties are levied on most imported goods, with the exception of certain concessional regimes (see Getting Started tab), and goods from CARICOM countries, although a duty may still be charged on goods from more developed CARICOM countries. The collection of duties is regulated by the Principal Act, the Customs (Control and Management) Act and follows the CARICOM common external tariff for the region.

All imports are also subject to a customs service charge.

Some sample customs duties are below.

Sample custom duties

Excise tax is charged on certain luxury products such as fizzy drinks, motor vehicles, liquor and cigarettes.

Sample tax rates and amounts are below.

Sample excise tax rates and amounts

The country's legal system is similar in most respects to that of the United Kingdom and based on its common law system. The court of final appeal is Her Majesty’s Judicial Committee of the Privy Council. The lower courts are the Magisterial District Courts that exercise both civil and criminal jurisdiction up to a certain limit. There is also a separate Family Court.

The primary court of first instance is the High Court of Justice, from which appeal is made to the Eastern Caribbean Court of Appeal.  Both derive their jurisdiction form the Eastern Caribbean Supreme Court Act. Puisne judges preside over civil and criminal matters at the High Court.  There presently three such judges. Appeals are heard by a panel of three judges and are presided over by the Chief of Justice or President of the Court of Appeal and the Justices of Appeal.

The basic law is English law although a separate body of law has been developed, particularly in the area of international finance. The lawyers in the Eastern Caribbean are competent to practice freely in any Eastern Caribbean State, and in certain other states, including Jamaica, Barbados, Trinidad, Guyana and Belize.

The legal framework provides avenues for the settlement of disputes that may arise between businesses, between business and customer as well as between businesses and the state. The legal system is comprised of a number of lower courts and the Eastern Caribbean Supreme Court, that can hear and adjudicate of complaints filed by parties to a dispute. Disputes can be sent to arbitration by the court and decisions arrived at through arbitration are binding on parties. The Caribbean Court of Justice (CCJ) in its original jurisdiction hears matters relating to the Treaty of Chagaramus that established the Caribbean Community.

With regards to specific laws, the Arbitration (International Investment Disputes) Act that provides for the implementation of the provisions of the Convention on the Settlement of Investment Disputes between States and Nationals of other States. The Trade Dispute (Arbitration and Inquiry) Act provides for the establishment of an arbitration tribunal and aboard of inquiry in connection with trade disputes and to make provision for the settlement of such disputes.

Saint Vincent and the Grenadines is also a member of the 1958 Convention on the Recognition and Enforcement of Foreign Arbitral Awards (the New York Convention), meaning that arbitral awards relating to foreign investments are legally binding and enforceable.

St. Vincent and the Grenadines is a small island economy, with a population of about 110,000 and a GDP per capita of about US$7,100. The economy is highly dependent on tourism-related activities, but the number of tourists is relatively modest compared to other economies in the Eastern Caribbean Currency Union (ECCU). 

Saint Vincent and the Grenadines has benefitted from a tourism industry dating back to the 1960s. Nevertheless the sector has remained small. Even today, there are only 2,200 hotel beds.

However, a new international airport on Saint Vincent, with a growing number of direct flights to Canada and the United States is set to increase visitor numbers for a country with important tourism potential from the following:

• Landscape, climate and heritage: Forests and hilltop locations with nature trails and waterfalls. A tropical climate. Colonial heritage sites, including in pittoresque Kingstown. Old churches. A rum distillery. Botanical gardens. Laid back Grenadine islands with pristine beaches.
• A vibrant culture: The annual carnival in June and July. The Garafuna homecoming. The Christmas night market.
• Skills: An English-speaking workforce and a newly opened local hospitality training school.
• Incentives: A fiscal incentives package for the sector.
• Tourist profile: Outside cruise ship visitors, the average stay is ten days, with most visitors from the United States, Canada and the United Kingdom. Regional visitors come from Barbados and Trinidad and Tobago.
• Potential for growth: The international airport currently has plenty of scope for growth in the number of flights. Current flights have high load factors. 

With growth in flights, there is a need to build new hotels. A new 250-bed beach hotel is being developed in Mount Wynne, outside Kingstown, and a 92-bed Holiday Inn Express with conference facilities is being built in Diamond, close to the airport. But a number of government-owned as well as privately-owned properties are available for hotel development:

• Mount Wynne offers two further beach front parcels measuring 20.4 and 29.5 acres respectively and ear-marked for the development of resorts. The hotel currently under development should be completed by 2021.
• Chatham Bay, Union island, is a 99 acre greenfield property owned by the government and is available for hotel/resort development.
• Park Estate Bequia, offers a 600 acre green field property available for hotel development on the largest Grenadine island.

With the construction of hotels to accommodate the anticipated increase in visitor arrivals, as well as growth in cruise ship day-trip arrivals there will be a need to invest in recreational activities for visitors. Investments in activities such as zip-lining, canopy tours, cable cars, high-end restaurants and bars are encouraged as currently there are no such activities present on mainland Saint Vincent. 

The currently benefits from a light manufacturing sector supporting electronic assembly and the production of custom-made and high-end furnishings. There are two industrial estates. The government currently offers a number of incentives including tax breaks for capital intensive enterprises. Incentives include:

• Availability of customized and standard factory shells of 6,000, 10,000 and 20,000 feet. The shells are already fitted with electrical and plumbing connections.
• Exemption of income tax on dividends paid to shareholders.
• Net losses offset in computing the profits taxable for the 5 years following the tax holiday period.

Export Development Incentives include:

• Repatriation of profits.
• Exemption from capital gains tax.
• Working capital advances for the purchase of inputs and raw materials under the Export Credit Guarantee Scheme (ECGS).
  

Saint Vincent and the Grenadines is currently seeking to achieve two objectives in its energy strategy: move to green sources of energy and achieve energy security. Currently 79 percent of energy is generated from imported diesel.

The flagship of this strategy is the installation of a geothermal plant that in time is expected to generate 60 percent of the country's needs.  A solar farm in Lowman's Bay and Union Island will also contribute. However, with the tourism, and in particular the hospitality sector, expected to grow, the government is keen for greater investment in this area as peak-time demand increases beyond 23 MW.

The current legal framework allows for hotels and other businesses to install their own solar generation capacity and to be licensed as an independent power producer, for which there is a EC$0.35 feed-in tarrif. Other opportunities include installation of solar water heaters. The framework is being revised in order to further incentivize green investments.

The government has been seeking to diversify the agricultural sector from banana exports with an emphasis on agro-processing to make better use and value-added of local food crops. Output can provide import-substitution for the local market and the growing tourism sector (see further below), and provide exports to the region.

Based on existing trends in agro-processing, potential exists in:

• The manufacture of fruit juices, fruit-based beverages, jams, jellies, and marmalades using locally available fruits.
• The production of desiccated coconut, coconut cream and coconut milk.

Saint Vincent and the Grenadines benefits from diverse and rich marine resources. With the forthcoming completion of a US$10 million facility to process and export fish and lobster and an intention to purchase US$20 million worth of fish and lobster locally, investment is required in fishing vessels and other equipment to sustainably harvest resources to meet demand.

Potential also exists in aquaculture to address seasonal restrictions on lobster harvesting.

The country is well poised to take advantage of developments and investments in the ICT sector and has the following strengths:

• Installation of additional undersea and terrestrial fibre capacity.
• Proximity in terms of time zones to North America and Europe.
• English as mother tongue across the population.
• An fiscal incentive package for the sector (see Getting started tab).
• Local educational resources it ICTs through the National Centre for Technological Innovation (NCTI) with areas of training including MCSE, MCSA, CompTIA A+ Certification, and training in medical transcription.
• A planned technology park.

Opportunities in the sector include:

• The development of an IT college, for which the government is willing to partner with the private sector.
• Medical transcriptions, image processing and other IT-enabled services.
• Geographic information system and image processing.
• Software development.

In 2018, Saint Vincent and the Grenadines authorized the licensing of businesses in the medicinal cannabis sector, the second country in the Caribbean to do so after Jamaica. 

The government, through the Medicinal Cannabis Authority, is currently issuing licences to traditional farmers and other local, regional, and extra-regional stakeholders for the cultivation, manufacture, dispensary, transportation, import, research and export of medicinal cannabis products. 

Applicants are subject to a due diligences process and must demonstrate that their facilities meet the necessary legal and technical requirements.