Basic price of incorporation the company with VASP authorization in Saint Vincent and the Grenadines starts from €20,000
Relevant regulation of cryptocurrencies in Saint Vincent and the Grenadines
In May 2022 the Virtual Assets Business Act (the “VABA”) was passed in Saint Vincent and the Grenadines (“SVG”). The VABA seeks to provide for the registration and supervision of virtual asset business in or from SVG and with persons in SVG and for related matters. The advantages of obtaining a VASP license include the availability of technical resources (there is good infrastructure to support crypto-businesses, including network security, asset storage and data transfer systems) and SVG offers tax exemptions to attract those wishing to open a cryptocurrency exchange here.
VASP regulation is in force on SVG from May 2022
Step by step description
Step 1 – Registration of the company:
- Certified copy of passport for all beneficial owners, directors, and shareholders;
- Certified proof of address for all beneficial owners, directors, and shareholders (no older than three months);
- Bank or specialist certificate for all beneficial owners, directors, and shareholders;
- Information about the activities of the company, the source of funds, and so on.
To register an offshore Business Company (“BC”) it is necessary to file an application and documents to the Registrar of Business Companies (“Registrar”) for the incorporation. Only the proposed registered agent (who holds relevant license) may file an application for the incorporation of a BC.
The following documents are required to register a company in SVG:
Step 2 – AML/KYC procedural rules:
Creation of individual set of documents including AML/CTF procedures, Risk assessment policy, KYC configuration with necessary levels of verification of individuals, legal entities, merchants.
Step 3 – Obtaining a VASP license:
It is required to apply to the FSA for registration if there is a purpose to be registered to offer or operate a virtual asset business (“VAB”).
- the application fee - $4,000;
- certified copies of two pieces of government issued identification for any director, officer and person authorized to represent the applicant;
- if applicable, certified copies of the instrument by which the person is constituted or established;
- proof of registration to do business in SVG pursuant to the Registration of Business Names Act.
An application shall be accompanied by:
Understanding requirements in Saint Vincent and the Grenadines
VABA applies to any person who whether before or after the commencement of VABA offers or operates in or from SVG VAB.
According to Section 2, "VAB means the conduct of one or more of the following activities or operations for or on behalf of another person:
The abovementioned businesses shall now be registered with the Financial Services Authority (“FSA”) as the VAB and included into the special register maintained by the FSA.
It is necessary to register with the FSA to engage in virtual asset business
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 crypto license registration in Saint Vincent and the Grenadines
Requirements of registrant as follows:
- 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 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.
Taxes in Saint Vincent and the Grenadines
There are no special taxes on virtual assets in SVG.
Companies incorporated in 2019 and thereafter are under the territorial tax regime where only foreign-sourced income is exempt from local income tax while BCs are subject to corporate tax on income earned within the island (if any; it is 30%).
There is no taxes in regard to activities related to virtual assets
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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.