How to Register a Sole Proprietorship in Grenada
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Grenada has a lot to offer, as it is among the most popular Caribbean states for starting a business. It is located in the southern Caribbean region, and it is not far from South America. Tourism is by far the most developed sector, as the number of tourists increases every year. The country is politically and economically highly stable. The capital city is St. George’s, the official language is English, and the official currency is the Eastern Caribbean dollar.
Disclaimer: Be aware that this article is not a substitute for legal advice. Please always check official websites or seek legal advice before you take action.
Sole proprietorship in Grenada
Most people choose to start their small business in the form of a sole proprietorship because it is the easiest one to establish and run. The owner is not distinguished from the business by the law. The liability is not limited- the owner is responsible for all the assets and debts with all their fortune. It is easy to adapt the business to the changing environment due to its simple form. Before you start operating your business, you will have to register it first.
Registration of the sole proprietorship
The business registration might sometimes be confusing, but don’t worry. We have gathered the instructions on how to do it the easiest and fastest way. The registration procedure is done at Corporate Affairs and Intellectual Property Office (CAIPO), at the address Mount Wheldale, St George’s, Grenada W.I. Here is the step-by-step guide:
- Business name: To search and register a business name, you will need to gather an application form from the CAIPO. If you apply only for the search, you should pay the fee of ECD 5, and if you wish to reserve the name, the fee costs ECD 25. Within three days, your business name will be reserved if everything is in order.
- Business registration: To register the business, you need to submit the Letter of Application (in duplicate) to the Registrar of CAIPO. You can obtain the letter form also at the office. Along with that letter, you will need to submit the Statement of Particulars, which will include, in case of a sole proprietor, the following information:
- Name and surname;
- Your nationality;
- Your residence;
- Any other business occupation, if such exists
- Business commencement date.
The fee for this submission costs ECD 25.
In 2-3 days, your business will be registered, and you’re almost ready to start operating. You will also need to register for taxes and social security.
Tax registration in Grenada
To register the business for tax purposes, you should visit the Inland Revenue Division. There, you should ask for the individual registration form. The tax authorities are also fully operative online, so you can finish the registration electronically. After the form is completed, you will be issued the tax number.
If your annual earnings exceed ECD 36,000, you are subject to the income tax, which is levied at 30% for residents and 15% for non-residents.
Businesses with annual taxable supplies over $300,000.00 are required to register for the VAT. It is charged at the rate of 15% on most goods and services and 10% on hotel accommodation and dive operations.
Social security registration
All sole proprietors are required to register for social insurance. To register, visit any National Insurance Scheme (NIS) office. with the following documents:
- Certified birth certificate
- A valid picture ID
- Certified marriage certificate (if married)
The contribution rate for a self-employed person is 11% of gross earnings.