INTRODUCTION
For those still unacquainted with this small multi-island State, it is located in the Southern Caribbean West of Barbados, North of Grenada and South of St. Lucia.
Independent less than 20 years ago, it is an emerging country slowly replacing bananas as its number one export with Tourism and financial services as its number two product.
In the winter of 1996, the Government of this multi-island State in the Eastern Caribbean launched its new thrust into the offshore financial services market. The Legislative package included the following:
(i) International Business Companies Act - (IBC)
formation of all types of companies including limited duration; redomiciliation for companies; companies limited by guarantee etc;
(ii) International Banks Act - (IBA]
registration a regulation of offshore banks with 2 classes of licence;
(iii) International Rusts Act – (ITA)
registration of trusts; security provisions from predatory creditors;
(iv) Registered Agent and Trustee Licensing Act - (RA)
the regimen for licensing of offshore professionals;
(v) Confidential Relationships Preservation Act, 1996 -
the center piece for the security of offshore business;
The governing administration and regulator of the package is the new Offshore Finance Authority (OFA) (vi). Annexed to the package was (vii) the Honorary Citizenship Act, known in other jurisdictions as the Economic Citizenship Law, aimed at providing an attractive investment programme for desirable high net worth individuals who would obtain a suitable accompanying travel document for "protective" purposes.
Two additional pieces of legislation were proposed in 1997 and 1998, to wit, -
(a) A Mutual Funds Act 1997 and (b) an International Insurance Act 1998. These Acts will shortly be fully implemented when Government gives its final approval of their accompanying rules and regulations.
The engaging feature of the jurisdiction is the strength of the Confidential Relationships Preservation Act, 1996. This is balanced by the provisions of the Proceeds of Crime Act and the Mutual Legal Assistance in Criminal Matters Act, so that while investors can seek the comfort of our Courts, they must do so "with clean hands".
The menu of laws is designed to provide a user-friendly investment environment, geared to companies and individuals who are serious. A cadre of professionals has recently launched an offshore practitioners professional body- Saint Vincent and the Grenadines Association of Registered Agents which is working with government in a new style of "smart- partnership" to ensure that the jurisdiction is regulated and viable.
All types of companies, offshore banks of class i and class ii insurance companies. and trusts can be established and operated there. The turn- around time varies from 1-3-5 days for companies and trusts and 90 days maximum for banks, by reason of the due diligence procedures that must be met to maintain a sound reputation and respectability.
Fees are flexible and negotiable; the Association is also active in that role, so that ' shopping around" is not out going to be common- place within the jurisdiction.
We are aware that there is competition in the market place, but we have the advantage edge - i.e. -
(i) we are a stable independent nation;
(ii) we enjoy parliamentary democracy;
(iii) Our jurisprudence is rooted in the English Law traditions;
(iv) All investment vehicles are totally tax exempt;
(v) There is strict confidentiality enforceability through the courts;
(vi) Non applicabilitv of foreign control restrictions;
(vii) No mechanism for the exchange of tax information;
Our business is the new one stop Shop. Our Law Firm – Rene.M.Baptiste provides the full range of legal services. The senior partner also a Notary Public has the longest standing (22 years) in the country with the offshore industry, and in 1996-1997 provided the initial services to the government in establishing the new laws and the OFA. The Firm is also a licensed Registered Agent, Registered Trustee and Private Trustee.
The Law Firm maintains a management company which is a Registered Agent, Registered Trustee and Private Trustee - The Ramerson Trust Corporation. Both the Firm and the Company can readily access auditing, accounting and banking services as requested, through the partners of the world's major firms operating in the State.
Our joint services include formation of companies, banks, trusts, apostille, notarisationas, certifications, redomiciliations, shipping registration services, legal opinions, company and corporate services, provision of nominee shareholders, officers and directors registered offices and many more.
In this atmosphere, experience counts and it still matters.
SYSTEM
It is a parliamentary democracy with elections Constitutionally due every 5 years. Its Constitution with the consent of Her Majestry's Government, as it moved from Associated Statehood which was independence over internal affairs and Britain holding power over external affairs, to full nationhood.
INTERNATIONAL ORGANISATIONS
It is a full member of the Commonwealth, The United Nations and Organisation of American States. It is part of the grouping of the English Speaking Commonwealth States, in the Eastern Caribbean called the Organisation of Eastern Caribbean States commonly referred to the O.E.C.S. It is also one of the States that Enjoy so-called privileges as part of A-C-P- grouping - African Caribbean and Pacific States, now under bombardment by the United States through the World Trade Organisation – W.T.O. with respect to the trading of our bananas on the European market.
INSTITUTIONS
The grouping shares one (1) Supreme Court - The Eastern Caribbean Supreme Court which consists of a High Court and a Court of Appeal. The Final Court is the Privy Council in the U.K.
THE EASTERN CARIBBEAN DOLLAR
One (1) currency, one (1) monetary system governed by the Eastern Caribbean Central Bank (ECCB) established since 1983 and no currency change since the parity with the USS was fixed in 1976. It is pegged to the US$ (EC$ 2.7169 = US$ 1.00)
LOCAL
St. Vincent and the Grenadines is a very young country and is ripe for foreign business investment and the expansion of the local entrepreneurial class.
To encourage local and foreign investment, Government has placed a number of laws on the statute book as investment incentives: A modem Companies Act: Fiscal incentives Act:
DOING BUSINESS IN ST. VINCENT AND THE GRENADINES:-
Residency
This is desirable for doing business, but it is not a legal requirement. Permits can be obtained for 1-2-3 years, 1-2 temporary residence, permanent residence is available. All applications are dealt with on merit.
Work Permit
Applications must be made to the office of the Prime Minister outlining the capability and qualification for the job: length of time to work.
A grant is usually given for 1-2-3 years. It is required for all non-nationals and given in 3 grades Caribbean citizen, CommonWealth citizens and aliens (foreigners). Fees are changed by the Government and Practitioners.
New Incentive
The Economic Citizenship programme for high net worth individuals is now in the pipeline. The writer understands that regulations will be published shortly covering conditions and terms and restrictions.
Rene Baptiste is a senior legal and offshore practitioner in St. Vincent and the Grenadines with 22 years of call. She is an honours law graduate (l974) of the University of the West Indies, and the Sir Hugh Wooding Law, School (1976). She is member of the International Tax Planning Association, the International Bar Association the Offshore Institute, and an Associate member of the American Bar Association. She is currently pursuing professional qualification leading to associate membership of the Chartered Institute of Arbitrators in the United Kingdom.
She owns her Law Firm and is the consultant to the Ramerson Trust Corporation.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
This article also appears in the 'International Offshore and Financial Centres Handbook 1999/2000'. For further information about this highly informative guide to offshore centres, or to order your copy, please phone +44 (0) 207 820 7733 or send an email to iofch@mondaq.com
