Saint Lucia is a stunning Caribbean island, renowned for its picture-perfect shores, balmy climate all year, and welcoming locals. On the other hand, it’s a great place for entrepreneurs from other countries to shop. Foreign investors and businesses contemplating a move here will find the following information helpful.
Following the statutory requirements on International Business Companies is the simplest and least expensive method of forming a corporation in Saint Lucia (IBCs).
Saint Lucia’s International Business Corporation (IBC) Act defines an IBC as any foreign company that complies with its requirements. Formerly exempt from taxes, companies with a Saint Lucia base can no longer claim such status as of 2019. It now taxes companies, including IBCs, at a rate of 30% on local commercial profits. Nevertheless, IBCs’ overseas earnings are not subject to taxation in Saint Lucia. Businesses that were already in existence before the 2019 change to the IBC Act will not have to pay taxes on any profits they make in Saint Lucia.
How to form a company in St. Lucia
The following is the guideline:
- Name search.
- Submission to the commercial registry agency for recordation.
- Design a corporate seal.
- Collect social security or taxpayer ID number.
- Create a business profile with the social security administration.
Lookup by name
While forming a company here, it is necessary to register the company’s trade name. A name search can be done by a local attorney. A company name must be unique and cannot be the same as another company on the island. Depending on the form of company they register as, a business must include the words “corporation”, “limited” or “incorporated” or their acronyms, in the company name. In just two days, you can finish this procedure.
Submission to the commercial registry agency for recordation
Saint Lucia’s Commercial Registry charges a cost of XCD 850 (equal to USD 314) for each new business registration. When a new IBC submits the required documents to the Registrar, it will receive a certificate of incorporation. The average processing time is one week.
Make a logo for the business
Although company seals are not mandated under the IBC Act, it is recommended that IBCs have them to obtain a commercial bank account on the island. Several kinds of financial transactions also necessitate it. A simple seal may be made in about two days, however many businesses instead utilize rubber stamps as their official signature.
Collect social security or taxpayer ID number
To obtain a tax identification number, the IBC’s managing director must visit the Inland Revenue Department in person. Or the company may retain the services of a local legal or administrative expert to do so. The time needed to obtain a tax ID number (TIN) is typically one working day.
Create an employer profile with the appropriate social security agencies
Finally, the company must be recognized as an employer by the social security system by registering with the National Insurance Corporation. It takes a day to finish this procedure.
Benefits of establishing a business in Saint Lucia
As a result of the government’s many incentives for IBCs to locate, the island has been a popular choice for international investors in recent years. Some of the upsides of setting up shop in Saint Lucia are as follows:
- There is no necessary starting or minimum capital investment.
- Foreign corporations with foreign residences are not restricted from engaging in international trade.
- The identities of shareholders and board members are kept out of public documents.
- Annually, an IBC needs simply submit its unaudited financial accounts.
- Saint Lucia’s income tax system does not apply to foreign earnings.
- Several monetary incentives exist to attract both domestic and international investors.
- Allows its foreign investors to send back home any money they make.
- There are no restrictions on the percentage of foreign investment.
