Cryptolicense in Saint Vincent and the Grenadines: The Ins and Outs of Licensing

In May 2022 the Virtual Assets Business Act (VABA) was passed in Saint Vincent and the Grenadines (SVG) that seeks to provide for the registration and supervision of virtual asset business in / from SVG and with persons in SVG and for related matters.

The Financial Services Authority (FSA) is the competent authority tasked with regulating and supervising Virtual Asset Service Providers (VASPs) in SVG.

VASP regulation is in force on SVG from May 2022

Key Numbers about Cryptolicense in SVG

4 months

average term of obtaining license

0%

corporate income tax (CIT) rate for foreign-sourced income

$100,000

statutory deposit

$4,000

application fee

$12,000

annual registration fee

0%

value added tax (VAT) rate to a SVG offshore company

Legal Opinion about Cryptolicense in SVG

Ganna Voievodina

Manimama, CEO

"SVG is a jurisdiction with a progressive regulatory framework that offers clarity and flexibility to crypto companies. With our experience and guidance, we will guide you through the regulatory process, allowing you to obtain a crypto licence quickly and easily".

Types of Activities with a License

Exchange between a virtual asset and fiat currency: VASPs offer conversion between virtual assets and fiat currencies, giving customers the ability to transact in multiple currencies.

Transfer of a virtual asset whether or not for value: VASPs can provide the conducting a transaction on behalf of another person that moves a virtual asset from one virtual asset address or account to another.

Participating in and provision of financial services related to an issue or sale of a virtual asset: VASPs may engage in activities related to the provision of financial services in connection with the issuance or sale of virtual assets by the issuer.

Exchange between one or more forms of virtual assets: VASPs can process the conversion or exchange of one type of virtual asset for another.

Safekeeping or administration of a virtual asset or instruments enabling control over a virtual asset: VASP license holders can securely store and manage virtual assets on behalf of individuals or entities, or provide services that enable persons to maintain control over their virtual asset.

Choose the Package of Services

Advanced

Set up of company ready to start cryptocurrency operational activity

€25,500

  • Company formation in SVG
  • Legal registered office and registered agent
  • Individual AML/KYC policies
  • Business and customer service plan
  • VASP authorization application
  • Full communication with FSA
  • Annual Beneficial ownership and Economic Substance filings
  • Order now

    Basic

    Creating the company and VASP authorization

    €13,000

  • Company formation in SVG
  • Legal registered office and registered agent
  • VASP authorization consulting during application
  • Standard AML policies
  • Order now

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    Step by Step Description

    Step 1. Initial setup

    We need such preliminary documents and information from the client for a company incorporation:

    • Preferred company name
    • Preferred legal form (Business Company is one of most popular offshore forms)
    • Certified passport copies from all beneficial owners, directors and shareholders
    • Certified proof of address for all beneficial owners, directors and shareholders (not older than 3 months)
    • Bank or specialist certificate for all beneficial owners, directors, and shareholders
    • Information about the activities of the company
    • Information about the source of funds
    • A Power of Attorney (in case of a remote company registration)

    Documents must be translated into English if in another language and translations must be notarized

    Duration: up to 1 week

    Step 2. Company registration

  • Preparation of corporate documents
  • A SVG licensed Registered Agent must file an application and documents to the Registrar of Business Companies for the incorporation
  • Duration: 5-10 days

    Step 3. Preliminary work prior to applying for a VASP license

  • Preparation of an AML/KYC policies
  • Open an account with a local bank - a person shall not be registered under VABA unless that person makes to the FSA a statutory deposit of $100,000 (~ €92,000) or an amount equal to 25% of the financial obligations to clients of the registrant, whichever is greater, in cash, government securities or in any other form
  • Preparation of all necessary documents and application
  • Duration: 1 month

    Step 4. Obtaining a VASP license

  • Submission of the application to the FSA
  • Application review by the FSA
  • Listing the registrant on the FSA register and issuing a Certificate of Registration
  • Duration: 4 months

    Understanding the Requirements of SVG

    A person must apply to the FSA for registration in writing and provide the following:

  • The name and address of the registered office of the person
  • The address of the place of business of the person in SVG
  • A statement setting out the nature and scope of the VAB including but not limited to the date operations commenced, name of application and website address where the person conducts VAB from or intends to conduct VAB from and the name of any other country where the person offers or intends to offer VAB
  • The name and address of any person who holds a management position or is authorized to represent the applicant
  • The name and address of any affiliated company within and outside of SVG
  • The names and address of directors, beneficial owners and significant shareholders
  • The name and address of any principal representative or proposed principal representative required by section 10
  • Written policies, rules and procedures for AML and CFT measures, data management and protection, security access control and cyber security safeguards
  • A copy of a risk assessment of the products and services to be provided
  • Any other information the FSA may reasonably require for the purpose of determining the application and whether a person is fit and proper
  • To offer or operate a VAB, you must apply for registration with the FSA

    Requirements for VASPs in SVG

    The mandatory requirements are to make a $100,000 security deposit with the FSA, appoint a principal representative who is resident in SVG if the registrant has a registered office outside SVG, and submit annual audited financial statements to the FSA

    Requirements for a registrant:

  • A registrant must have at least 1 director and 1 shareholder in the company (there are no restrictions on the residency or nationality of the directors and shareholders)
  • A registrant with a registered office outside of SVG shall appoint and have at all times in place, a person who is ordinarily resident in SVG to be its principal representative
  • A registrant shall implement and maintain policies for the VAB to comply with any data protection legislation
  • A registrant shall comply with the requirements of AML/ CFT legislation, and institute procedures to ensure that accounting records and business operations comply with AML/CFT legislation
  • A person shall not be registered under the VABA unless that person makes, to the FSA, a statutory deposit of $100,000 (~ €92,000) or an amount equal to 25% of the financial obligations to clients of the registrant, whichever is greater, in cash, government securities or in any other form approved by the Minister
  • A registrant shall appoint annually an auditor to perform an audit
  • A registrant shall within 3 months of the end of the financial year submit the audited financial statements to the FSA
  • Fees:

  • Application fee $4,000 (~ €3,700)
  • Registration fee $12,000 (~ €11,000) - if the FSA approves an application
  • For each year a registrant continues to offer or operate VAB, the registrant shall renew the registration by paying the registration fee on or before January 31 of each year
  • Taxes in SVG

    There are no special taxes on virtual assets in SVG.

    In 2018, there were significant changes in taxation legislation. Following enactment of International Business Companies (Amendment) Act 2018, an International Business Company has been replaced by Business Company and the tax exemption regime has been removed. Companies incorporated in 2019 and thereafter are under the territorial tax regime where only foreign-sourced income is exempt from local income tax while Business Companies are subject to corporate tax on income earned within the island (if any; it is 30%).

    No VAT is applicable to a SVG offshore company.

    There is no currency exchange control in SVG.

    SVG is a member of the Double Taxation Agreement with Antigua, Belize, Dominica, Grenada, Guyana, Jamaica, St. Kitts and Nevis, Saint Lucia,Trinidad and Tobago.

    There is no taxes in regard to activities related to virtual assets

    Client Feedbacks

    "I had an excellent experience working with Manimama OU in creating the SVG company. Currently we are in process of the VASP license application and I am sure they will do that".

    "Manimama OU exceeded my expectations with their exceptional legal services. I appreciated their strategic approach to handling my legal matters".

    "I'm extremely satisfied with the services provided by Manimama OU. The team offered valuable insights throughout the process. I'm grateful for their support in achieving a favorable outcome. Highly recommended".

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