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STARTING A BUSINESS 1. Secure a location 2. Register a business name 3. Prepare notarized company document and make application to the Supreme Court Registry for company Incorporation 4. Upon the receipt of the business name regis tration certificate of incorporation the business has legal status and can legally carryout business operation in the country: the business can now do the following: a. Register with the Inland Revenue Department (IRD) for a Tax Identification number (TIN) b. Register with the national Insurance Scheme (NIS) for social security contributions c. Make a company seal if a company d. Open a bank account in any commercial bank in Grenada e. Apply for permits and licenses as required It takes six (6) procedures, twenty (20) days and costs US$13 (EC$35) or US$1,400 (EC3,810) to start up a business in Grenada. Details are provided below A. Set Up The Business: No of Procedures: 6 Time to complete: 20 days Cost to complete: EC$1,235 (EC$10 for name reservation, EC$25 for name registration, EC$1200 for Company Incorporation) Attorney Fee: EC$2,500 Setting up a Company Requirements The following is required to incorporate a company: - a name that has been registered with the Supreme Court Registry - at least one share - at least one shareholder - at least one director - a registered office - an address for service - A company is not legally required to have a constitution. If the company has a constitution, it is generally filed at the time of incorporation. However, notice of the adoption of the constitution does not have to be filed until 10 working days after the constitution is adopted Forms of businesses allowed: a. Individual (Sole Proprietorship) with a registered business name under the Registration of Business Names Act, Cap 281 of the Revised Laws of Grenada b. a partnership; c. a private or public company with limited liability for the shareholders under the Companies Act No 35 of 1994. Procedures 1. Register the business name 2. Prepare and notarize Company Statutes 3. Register the company with Supreme Court Registry 4. Register the company for taxes 5. Register the company for social security 6. Make company seal 7. Open bank account 8. Apply for permits and licenses Cost The cost to set up a company is US$1,375 as follows: Name Search and Reservation $4 Business Name Registration $10 Filing Fee $442 - Local Company $937 - Foreign Company Attorney’s fee $920 Other charges Amendment to Business Name $4 Certified Copy 0.38¢ *All fees are quoted in USD Registering a Business Name Every business operating in Grenada is required to register a business name with the Supreme Court Registry within 14 days of commencement of the business operations. The process is as follows: a. Determine type of business structure (Sole Proprietor, Partnership or Company) b. Determine the business name c. Prepare letter of application (in duplicate) in the prescribed form to the Registrar of the Supreme Court Registry requesting the registration of the business name under the Business Name Ordinance, Cap.281 of the Revised Laws of Grenada. d. Prepare statement of particulars (in duplicate) in the prescribed form. A statement of particulars must include the following: • The name of the business • General nature of the business • The principal place of business • Where the registration to be effected is that of an individual • The present Christian name and surname • Former Christian name and surname • The nationality • The usual residence • The other business occupation of the individual • Where the registration to be effected is that of a firm • For each of the individuals who are partners the following: • The present Christian name and surname • Former Christian name and surname • The nationality • The usual residence • The other business occupation • Corporate name • Registered or principal office of every corporation which is a partner • Where the registration to be effected is that of a corporation • its corporate name • registered or principal office • Date of commencement of the business e. The statement of particulars must in the case of an individual be signed by him, in the case of a corporation by a director or secretary and in the case of a firm by all the individuals who are partners and by a director or the secretary of all corporations which are partners. If the statement is signed by some individual who is a partner or a director or the secretary of some corporation which is a partner, the signatory must be verified by statutory declarations Preparing and Notarizing Company Statutes a. Procures the services of an attorney b. Prepare and notarize the following company statutes: i. Articles of Incorporation to include: • The name of the company • The class and maximum number of shares in the company • Restriction on share transfer • The number of directors • Restrictions if any on the business of the company 1 2 3 4 5 6 Name Reservation No. Days: 3 No. Steps: 4 # of docs: 3 Cost: EC$10 Preparation of Company Documents No. Days 2 No. Steps 7 # of docs: 8 Atty. cost:EC$2500 Supreme Court Registration No. Days 10 No. Steps 5 # of docs: 1 Bus Name: EC$25 Company: EC$1200 Tax Registration No. Days: 2 No. Steps: 4-7 # of docs: 2-8 Cost: FREE Social Security Registration No. Days: 1 Max. Steps: 1 # of docs: 1 Cost: Free Company Seal No. Days: 2 No. Steps: 1 # of docs: 0 Cost: EC$75
