Saint Lucia, a stunning Caribbean island known for its picturesque beaches, tropical climate, and warm locals, is not only a popular tourist spot but also an appealing jurisdiction for foreign businessmen. If you are considering setting up a company in Saint Lucia, here is some useful information for foreign investors. The most convenient and cost-effective approach to forming a company in Saint Lucia is by adhering to the regulatory requirements imposed on International Business Companies (IBCs).
What is an IBC?
All foreign companies incorporating in Saint Lucia are required to comply with the International Business Company (IBC) Act and will subsequently be designated as IBCs. In the past, foreign businesses based in Saint Lucia enjoyed tax exemptions, but that changed in 2019. Now, company formations in Saint Lucia, including IBCs, are subject to a 30% tax on income from local business activities. However, income generated by IBCs abroad remains exempt from local taxes. Companies incorporated prior to the 2019 amendment to the IBC Act continue to benefit from tax exemptions on locally-generated income.
Perks of Company Formation in Saint Lucia:
In recent years, Saint Lucia has emerged as an attractive Caribbean destination for foreign investments, thanks to the various benefits offered by the government to encourage IBCs to establish their presence on the island. Here are some of the advantages of company formation in Saint Lucia:
1. Name Search: When forming a company in Saint Lucia, it is necessary to register a unique business name. A local attorney can assist in conducting a name search to ensure that the chosen name is not already registered by another business on the island.
2. Registration with the Commercial Registry Agency: Companies must register with the Commercial Registry of Saint Lucia and pay a fee of $850 Eastern Caribbean Dollars (XCD) or approximately $314 USD. Once all relevant paperwork is submitted, the Registry will issue a certification of incorporation. The processing time typically takes about a week.
3. Create a Company Seal: While the IBC Act does not mandate the use of a company seal, it is advisable to have one as some business transactions and banking requirements necessitate its use. Many companies employ a rubber stamp as an official signature, while others opt for a simple seal. This process can be completed in approximately two days.
4. Obtain Taxpayer Identification Number: The managing director of the IBC must apply for a tax number in person from the Inland Revenue Department. Alternatively, the business can hire a local legal/administrative professional to handle this task. The process usually takes one business day.
5. Register as an Employer with Social Security Authorities: Lastly, the business must register with the National Insurance Corporation to be recognized as an employer in the social security system. This process typically takes one day to complete.
Frequently Asked Questions:
1. Can a foreigner have a business in Saint Lucia? Yes, foreigners can own and operate businesses in Saint Lucia. The country welcomes foreign investments and provides a relatively open and business-friendly environment for foreign entrepreneurs and investors.
2. How long does it take to register a company in Saint Lucia? The registration process usually takes around 8-10 weeks, depending on the type of business entity and the completeness of the application.
3. What does IBC company name mean in Saint Lucia? In Saint Lucia, “IBC” stands for “International Business Company.” An IBC is an offshore company designed for international business operations, offering various tax benefits and privacy advantages.
4. What types of entities offer limited liability in Saint Lucia? Limited liability is commonly offered through companies, including International Business Companies (IBCs) and domestic companies such as private companies limited by shares.
5. What are the main characteristics of an IBC in Saint Lucia? The main characteristics of an International Business Company (IBC) in Saint Lucia typically include limited liability for shareholders, exemption from local taxation, minimal reporting and disclosure requirements, ability to conduct international business activities, flexibility in ownership and management structures, and strong confidentiality and privacy protections.
Biz Latin Hub: Trusted Assistance in Company Formation
At Biz Latin Hub, our expert team of company formation specialists, fluent in multiple languages, has vast experience in assisting businesses establish themselves throughout Latin America and the Caribbean. With offices in 17 countries and trusted partners in many more, we offer comprehensive back-office services, including legal, accounting, and recruitment support, to foreign investors. Contact us now for personalized assistance or a free quote, or explore our team and expert authors’ market entry expertise. Please note that the information provided here is for informational purposes only and should not be seen as formal guidance or advice. For specific situations, consult a professional.
