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:

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:

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.

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

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:

An application shall be accompanied by:

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.

After approving the application by FSA, a registration fee ($12,000) must be paid.

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:

exchange between a virtual asset and fiat currency;

exchange between one or more forms of virtual assets;

transfer of a virtual asset whether or not for value - any transaction carried out on behalf of another person that moves a virtual asset from one virtual asset address or account to another;

safekeeping or administration of a virtual asset or instruments enabling control over a virtual asset - these services include persons that have exclusive or independent control of the private key associated with virtual assets belonging to another person; and

participating in and provision of financial services related to an issue or sale of a virtual asset - in particular covers persons who participate in, or provide related financial services to, issuers’ offer and/or sale of virtual assets through activities such as ICOs.

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

LLCs are exempt from paying local taxes and stamp duties for 25 years from the date of incorporation. But local tax arrangements, available under the Caricom Tax Treaty, give LLCs the option of choosing to pay income tax at the rate of 1% on all profits where investor domestic law requires tax distribution.

No VAT is applicable to a SVG offshore company.

There is no requirement to file annual tax returns for LLCs.

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.

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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.