In June 2021, business firms in Saint Vincent and Grenadines lost their tax benefits. It became temporarily impossible to set up an international enterprise, since now all companies ceased to possess status of offshore enterprises operating in the international space. All of this is a consequence of the adoption of new laws by the regulator of SVG.
According to the adopted regulations, in these territories, all previously existing brokers won’t get any benefits, and they will also now be considered ordinary business-companies. Enterprises are no longer established in this territory.
Now all regulated firms are needed to pay corporate tax of 30% of all earnings. However, it cannot be categorically stated that businesspersons have no choice left. At the moment, FCA plans to amend the legislation on this law. Perhaps soon they will adopt a bill that will allow them not to pay 30% tax on income received outside this territory.
Other requirements that are changing how business-companies work in SVG
- All brokerages in Grenadines will be needed to provide information about their owners, beneficiaries, directors, who must also be kept by the agent.
- According to the regulator, if any data of the trading company or its directors change, then the agent must be aware of this within 10 days, if this is done later, or the agent did not receive information at all, then the company pays a fine of 20 thousand dollars.
- Regulated firms in these territories are now required to register their address (this could be your agent’s address). If the firm does not have an agent, it will also be required to pay a fine of $25,000. The agent must be licensed.
- Under the new laws, businesses are required to keep all their records. Violation is punishable by a fine of $20,000. There should be such a number of reports that it is possible to track all deals and understand financial conditions at the moment. If your documents are not with your representative, but elsewhere, then you must indicate its exact location.
Due to the emergence of such strict rules by FCA, it is necessary to look for other possibilities and ways out.
Options for brokers in Saint Vincent
Key and predominant opportunity is Saint Kitts and Nevis. In jurisdiction, work on financial market-space is not subject to licensing. There is one rule in these territories – a Nevis legal entity is not allowed to advertise itself as Forex structure with a license.
The second such opportunity is brokerages in St. Lucia. Since in Nevis you can open your own company there.
The resulting problems and complications led to an increase in popularity of Seychelles and Mauritius as offshore places to open Forex businesses. These islands have simpler and more understandable laws that allow you to safely open international businesses. At the moment, these islands are among all the above and are in demand among investors.
Another equally attractive place to open a trading company is the island of Cyprus. At the moment, it is no less popular than the Seychelles and is included in the list of one of best European and global options on market-space. Island government will offer you to issue a license of one of two types. It can be an STP Forex license or a market maker license – it all depends on the direction in which future enterprise intends to work.
Our firm is ready to give you comprehensive professional services in transferring your business project to another jurisdiction. We also have an extensive list of shelf companies for sale in many countries and hundreds of commercial destinations. Our specialists have vast experience in this field of activity, providing the most effective and quick services for each client.