Corporate Law at Grenada
Here’s an overview of Corporate Law in Grenada:
Corporate Law in Grenada: Overview
Grenada is an independent island country in the Caribbean, and its corporate law system is based on English Common Law principles, adapted through local legislation. Grenada is a member of the Organisation of Eastern Caribbean States (OECS), and its company laws align with regional standards.
1. Legal Framework
The primary legislation governing companies is the Companies Act, Cap. 68.
The law is influenced by English Common Law and regional frameworks.
Grenada is part of the Eastern Caribbean Supreme Court jurisdiction, which provides judicial oversight.
2. Types of Companies
Private Limited Company — Most common, limited by shares, restricts share transfers.
Public Limited Company — Can offer shares to the public.
International Business Company (IBC) — Used for offshore and international business, governed by the International Business Companies Act.
Limited Liability Company (LLC) — Hybrid entity allowing flexible management.
Other forms include partnerships and sole proprietorships.
3. Company Formation
Requires at least one shareholder and one director (can be the same person).
No minimum share capital for private companies unless otherwise specified.
Must have a registered office in Grenada.
Incorporation documents include the Memorandum and Articles of Association.
Registration done through the Registrar of Companies.
4. Corporate Governance
Companies have a Board of Directors responsible for management.
Shareholders hold meetings to exercise their rights.
Directors owe fiduciary duties and must act in the best interest of the company.
Statutory registers must be maintained (members, directors, charges).
Annual general meetings (AGMs) are required unless waived.
5. Reporting and Compliance
Private companies may have fewer reporting obligations; public companies have stricter requirements.
Annual returns must be filed with the Registrar.
Financial statements and audits are required for public companies.
Compliance with Anti-Money Laundering (AML) laws and beneficial ownership disclosures.
6. Taxation
Corporate income tax rate is approximately 30%.
International Business Companies (IBCs) benefit from tax incentives and exemptions.
Grenada has several double taxation treaties.
There is no capital gains tax, but other indirect taxes may apply.
7. Advantages of Incorporation in Grenada
Strategic location in the Caribbean.
Attractive offshore jurisdiction through IBCs.
English common law system provides familiarity and legal certainty.
Access to OECS regional legal and economic frameworks.
Favorable tax regime for international business.
Summary Table
| Feature | Details |
|---|---|
| Legal system | English Common Law |
| Primary legislation | Companies Act, Cap. 68; IBC Act |
| Company types | Private Ltd, Public Ltd, IBC, LLC |
| Minimum shareholders | 1 |
| Minimum directors | 1 |
| Registered office | Mandatory in Grenada |
| Corporate tax rate | ~30% (tax incentives for IBCs) |
| Annual filing | Annual returns, financial statements |
| Governance | Board of Directors, shareholder meetings |
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