What are the Differences Between a BC and LLC in St. Vincent & the Grenadines (SVG)?
Registering a new business in St. Vincent & The Grenadines (SVG) was once a relatively straightforward process. Due to recent changes in law, however, those looking to establish a new entity in St. Vincent must pay careful attention to the type of company being registered. Not only have St. Vincent IBCs been officially removed by the authorities, there are now major differences between its successor, the Business Company (BC) and an LLC.
St. Vincent Eliminates the Once Popular IBC. How Did Changes in Law Lead to the Cancellation of St. Vincent IBCs?
In late 2018, changes to local law dramatically impacted the once highly popular IBC (International Business Company) registrations. The authorities in St. Vincent chose to scrap the “I” in IBC, opting instead for what is now referred to as a Business Company, or BC for short. It’s important to highlight that BC companies are dramatically different from their former IBC counterparts.
The first major change is that BC operators are subject to a 30% corporate tax regardless of where income is generated. Previously, taxation was exempt for income earned outside of the country, making IBCs a popular vehicle for tax optimization.
In addition to tax obligations, BC owners and shareholders must be publicly disclosed by the St. Vincent Financial Services Authority (FSA). This is another blow to the attractiveness of a BC company as anonymity was another major advantage with the former IBC set ups.
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St. Vincent BC vs. LLC. What are the Differences?
An LLC has basically replaced the purpose that a St. Vincent IBC once served. When forming a St. Vincent LLC, the company is not subject to taxes as long as the income is earned outside of St. Vincent (this was exactly how the former IBCs functioned). Additionally, the names of shareholders and directors are not publicly reported in any type of directory with the FSA, meaning that anonymity of ownership remains preserved with an SVG LLC.
In addition to the benefits outlined above, there is no set share capital for a St. Vincent LLC and only a single director and shareholder are needed to form the company. Finally, there is no annual reporting requirement.
Atomiq Consulting – Your Partner in Offshore Company Formations & Registrations
Atomiq Consulting has the depth of experience and knowledge to quickly and efficiently register your St. Vincent LLC company. To learn more about establishing a new St. Vincent LLC, don’t hesitate to contact us today!
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