Business in Grenada

A business in Grenada commonly begins with a feasibility assessment, market and competition checks, a business plan and financing arrangements. The owner then selects a legal form, registers the business name or incorporates the company, completes tax onboarding, obtains sector permits and registers for social insurance where required. These steps vary with the activity, location, ownership structure, investment size and use of employees or imported goods. The Corporate Affairs and Intellectual Property Office, known as CAIPO, handles business-name registration and company incorporation under the Companies Act and the Registration of Business Names Act. Applications may also be available through the government eService. A Sole Trader operates under one owner's control, but the owner remains personally responsible for business debts. A Partnership places the business under shared ownership and agreed responsibilities. A Company, including a limited liability company, is a separate legal structure that requires incorporation documents, directors and articles. A non-profit organization follows its own registration and governance requirements. The choice of form affects personal liability, capital, taxation, decision-making, reporting and the way ownership can change. The Inland Revenue Division, or IRD, registers Sole Traders, Partnerships, corporations and other taxpayers. A Taxpayer Identification Number and online G-TAX onboarding support tax administration. Businesses may have obligations for corporate or personal income tax, annual stamp tax, value-added tax and pay-as-you-earn deductions when they employ staff. Business records generally need to be retained for at least seven years. Ownership or business-status changes should be reported to the Inland Revenue Division. Annual stamp tax is based on gross business receipts. The stated rates are 0.5% below EC$300,000 and 0.7% from EC$300,000, with the first EC$36,000 exempt. The annual return is generally due by 31 March. Value-added tax, commonly called VAT, generally requires registration when taxable supplies exceed EC$300,000. Public entertainment is subject to VAT independently of that threshold. VAT returns and payments are generally due by the 20th day of the following month, and the VAT certificate must be displayed. Pay-as-you-earn, commonly called PAYE, applies when a business deducts employment income tax from its staff under the applicable Inland Revenue Division rules. The National Insurance Scheme, or NIS, covers employed and self-employed workers. Employers register themselves and register employees within four days after work begins. The stated contribution rates are 7.25% for the employer and 6.25% for the employee, producing a combined rate of 13.5%, subject to maximum insurable earnings of EC$5,200 per month. Self-employed contributors pay 13.5% of gross income subject to the same monthly maximum. Contributions are remitted monthly. A 14-day grace period applies, followed by a 10% late charge and 1% interest for each month of delay. Grenada does not have one universal licence covering every business. Requirements depend on the activity and location and may include planning or building approval, health approval, tourism authorization, transport licensing, alcohol licensing, water-sports authorization or import and export procedures. The Grenada Investment Development Corporation, known as GIDC, and its Investment Promotion Agency function can coordinate approvals, permits and licences. The responsible authority still depends on the activity, so a business should identify each applicable approval instead of relying on a single general licence. Customs and Excise uses ASYCUDA World for import and export processing. Customs access requires the relevant tax and entity information. A business that imports stock, exports products or uses regulated equipment may therefore need customs registration and additional documents alongside its business and tax registrations. Ongoing operation can involve tax filings, NIS remittances, permit renewals, customs compliance, record keeping, commercial leasing and export or market-access requirements. Residents and foreign investors can generally establish businesses in Grenada. GIDC identifies no general restriction on foreign ownership. Non-Grenadian landholding rules, work permits and immigration requirements remain separate matters, and sector-specific professional or operational approvals may still apply. These requirements can affect the premises, staffing, ownership arrangements and timing of a project even when the business itself is eligible for registration. The Business Development Centre, or BDC, provides free advice across sectors and business sizes. Its support can include business plans, feasibility work, registration paperwork, costing and pricing, record keeping, financing, marketing, training and continuing assistance. GIDC also supports industrial parks, commercial leases, investment incentives, diagnostics, export readiness and market access. Formal registration is practically central when a business seeks tax clearance, institutional finance, incentives or official dealings. The Grenada Development Bank Small Business Development Fund can support a registered business for start-up, expansion, working capital, equipment, stock or a business vehicle, except a bus or taxi. Stated eligibility includes owner-management and at least one small-business criterion, such as fewer than 25 employees, manufacturing premises below 4,000 square feet, equipment below EC$135,000 or annual turnover below EC$337,500. The stated maximum loan is EC$40,000 for up to ten years, with up to one year of principal grace and three months of interest grace. Approval remains case-specific and depends on the submitted business and financial information. GIDC incentives target sectors such as agriculture, tourism and hospitality, ICT and business-process outsourcing, energy, education, health and wellness, manufacturing and creative industries. Published incentive types include a 100% investment allowance for up to 15 years, customs-duty exemptions, a 150% training or research-and-development tax credit, property-transfer or withholding-tax waivers of 50% to 100% and an initial capital-goods VAT waiver. An application typically requires registration or incorporation papers, ownership details, a prospectus, financing evidence, an implementation plan, permits, a business plan and three-year projections. A published GIDC processing-fee schedule revised in 2018 ranges from EC$287.50 for investments up to EC$249,999 to EC$5,750 for investments of EC$3,000,000 or more. Current fees and incentive conditions should be confirmed before filing. Creative businesses can use the Grenada Office of Creative Affairs, known as GOCA, and Grenada Development Bank support. The stated creative-sector programme includes low-interest loans up to EC$50,000, grants up to EC$25,000 and business-support vouchers up to EC$5,000 for eligible creative companies or initiatives. GOCA registration is used for concessions on eligible equipment and tools, including full customs and VAT concessions where approved. These measures apply to qualifying creative activity and do not automatically extend to unrelated businesses. The SAEP Enterprise Business Development programme with GIDC has described entrepreneurship training, start-up grants, technical support and business-development grants for existing businesses, including a focus on rural and youth enterprise. Its published period is 2018 to 2024, so availability in 2026 is not confirmed and should not be assumed when preparing a financing plan. During operation, the business should keep its registration and ownership information current, file tax returns, remit NIS contributions, maintain records, renew activity-specific permits and comply with customs rules where applicable. A business using employees may also have PAYE and employment-related obligations. A business importing goods may need continuing ASYCUDA World and customs compliance. A business in tourism, farming, fishing, retail, construction, transport, agro-processing, ICT, manufacturing, energy, health, wellness or the creative sector may face sector-specific approvals, incentives or support conditions. To close a business, report ownership or status changes to the Inland Revenue Division, settle outstanding tax and social-insurance obligations and address permits, contracts, creditors and employee matters. To cancel VAT, submit a written request to the Comptroller, file the final VAT return and return the VAT certificate. Deregistration can also be requested when taxable supplies no longer meet the registration threshold. Companies follow CAIPO filing and dissolution procedures under the Companies Act. Insolvency and bankruptcy involve separate legal processes. Business records should continue to be preserved for at least seven years after operations end.