Registering a business in Grenada is not complicated, but it has an order, and doing the steps out of sequence is the most common reason people lose a week. Each office asks for the paper the previous office gave you: the Inland Revenue Division will not issue a business Taxpayer Identification Number without proof of registration from the Corporate Affairs and Intellectual Property Office (CAIPO), and the National Insurance Scheme wants your registration details before it will set you up as an employer.
This guide walks through that order for the two routes most people take: registering a business name as a sole trader or partnership, or incorporating a company under the Companies Act. It also covers the follow-on registrations that catch new owners out, such as VAT, the Annual Stamp Tax and sector licences. Fees and forms change, so treat the figures here as a guide and confirm with each office before you go.
First decide what you are registering
Business name (sole trader or partnership). If you are trading under a name other than your own, for example a bakery or a tour business, you register that business name with CAIPO. The owner remains personally liable for debts, and income is taxed as personal income. This is the quickest and cheapest route and suits most one-person operations.
Private company. Incorporating creates a separate legal person that owns the assets, signs contracts and pays corporate income tax. Banks, landlords and larger clients often prefer dealing with a company, and it limits personal liability, but you take on annual returns and more formal record-keeping.
External company. A company already formed abroad that wants to operate in Grenada registers as an external company with CAIPO and appoints a local agent, usually through a power of attorney. Foreign owners should also check whether they need an alien landholding licence for any property and work permits for staff they bring in.
Step by step: the registration sequence
The sequence below is the one that works in practice. Allow two to four weeks from name search to being fully set up if your paperwork is in order.
- Name search and reservation at CAIPO. Submit the name search and reservation form at the CAIPO office in St George's or through its online portal. Offer two or three alternatives in case your first choice is taken or too close to an existing name. A reserved name is held for a limited period, commonly reported as 90 days, so do not reserve it until you are ready.
- File the registration. For a business name, file the business name registration form. For a company, file the articles of incorporation together with the notices of directors, registered office and secretary. Once accepted, you receive a certificate of registration or a certificate of incorporation.
- Get a Taxpayer Identification Number. Take the CAIPO certificate, the articles if you are a company, and identification for the owners or directors to the Inland Revenue Division, whose main office is on the Carenage. Some services can now be started online through the Inland Revenue portal.
- Register with the NIS as an employer if you will pay anyone, including yourself as a company director drawing a salary. Self-employed people register separately as self-employed contributors.
- Open a business bank account. Banks ask for the certificates, the TIN, identification and proof of address for every director and significant owner. Expect detailed compliance questions about where the money comes from.
- Apply for any sector licences before you open the doors: food handling, liquor, tourism, transport or professional licences depending on the activity.
Tax registrations that follow automatically from trading
Your TIN is the start of the tax relationship, not the end. If your taxable supplies reach or are expected to reach the VAT registration threshold, currently EC$300,000 a year, you must register for VAT and charge it at the standard rate of 15 per cent, with a reduced rate for some tourism services. Below the threshold registration is voluntary, and some businesses that mainly sell to other VAT-registered firms choose to register so they can reclaim input VAT.
Grenada also levies an Annual Stamp Tax on business gross receipts, calculated on the previous year's figures at a small percentage that has been adjusted several times over the past decade. New owners rarely hear about it until a reminder arrives. Employers must also deduct income tax from salaries above the tax-free threshold under PAYE and remit it monthly.
The Inland Revenue Division can tell you which returns you are expected to file and when. Ask for that list on the day you collect your TIN; it saves penalties later.
Documents to have ready before you start
Gathering everything in one folder before the first visit is the single biggest time saver. Have originals and at least two copies of each.
- Valid passport or national identification card for every owner, partner or director, plus proof of address dated within the last few months, such as a utility bill or bank statement.
- For a company: the draft articles of incorporation, the names and addresses of the first directors, the address of the registered office in Grenada and the name of the company secretary.
- For a business name: the full name and address of each owner and a short description of the nature of the business.
- A note of your proposed trading address. If you are renting premises, a copy of the lease or a letter from the landlord helps at the bank and with licensing bodies.
- Your personal TIN and NIS number, if you already have them; Grenadians who have worked before usually do.
- For directors living abroad: certified copies of identification and, often, a bank or professional reference.
- Money for government fees, preferably with a card or cheque option as well as cash, because payment methods differ between offices.
Mistakes that slow registration down
Most delays come from a short list of avoidable problems.
- Choosing a name that is too similar to an existing one. CAIPO will reject names that could be confused with a registered business, so check the register before you print anything with your new name on it.
- Turning up without originals. Offices want original identification and certificates, with copies. Bring both.
- Forgetting directors abroad. If a director lives overseas, their identification and proof of address may need to be certified, and couriering papers adds days.
- Leaving NIS until the first payroll. Contributions are due monthly from the first month you pay wages, and late registration does not cancel the arrears.
- Ignoring annual returns. Companies must file an annual return with CAIPO. Missing years leads to penalties and, eventually, a company that is no longer in good standing when the bank or a buyer checks.
- Assuming registration equals permission to operate. A certificate of incorporation does not authorise you to sell alcohol, run a guesthouse or handle food. Each of those has its own regulator.
Who can help, and what it costs
Many people complete a business name registration themselves in a morning. For a company, most owners use an attorney-at-law or an accountant, who will draft the articles, file at CAIPO and handle the TIN and NIS steps. Professional fees vary widely with complexity; ask for a written quote that lists government fees separately from the professional fee.
The Grenada Investment Development Corporation (GIDC) runs a business development unit that helps small enterprises with business plans and registration questions, and the Grenada Chamber of Industry and Commerce offers members guidance and networking. Government filing fees themselves are modest compared with professional fees; the name search and reservation, for example, has been reported at well under EC$50 combined, but confirm current fees with CAIPO before you file.
Frequently asked questions
Can a foreigner register a business in Grenada?
Yes. Non-nationals can own a company or register a business name. Separate permissions apply for owning land, which needs an alien landholding licence, and for working in the business yourself, which normally needs a work permit from the Ministry of Labour unless you hold a CARICOM skills certificate or similar exemption.
How long does company incorporation take in Grenada?
Once the name is reserved and documents are filed correctly, the certificate of incorporation is often issued within about a week. The TIN, NIS registration and bank account add more time, so allow two to four weeks before you can trade fully.
Do you need a lawyer to incorporate a company?
It is not a legal requirement, but most people use an attorney or accountant to draft the articles and handle filings. For a simple business name registration, many owners file on their own at CAIPO without professional help.
When must a business register for VAT in Grenada?
Registration is compulsory once taxable supplies reach EC$300,000 in a year or are expected to. Below that you can register voluntarily. Confirm the current threshold with the Inland Revenue Division, as thresholds have changed over the years.
Does a one-person business need to register with NIS?
Yes. A self-employed person registers with the National Insurance Scheme as a self-employed contributor, and anyone paying wages registers as an employer and deducts the employee share from each pay packet.
