St. Lucia Info Note
International Business Companies (“IBC”) are companies incorporated in St. Lucia under the International Business Companies Act 1999 (the “Act”). IBCs incorporated under the Act offer unique low tax advantages, ease (and therefore cost savings) in terms of administration, reduced accountancy burdens, and greater flexibility in terms of the different international activities that may be undertaken.
A St. Lucian IBC is very versatile because it may be used for simple transactions such as the owning of real estate located in any part of the world (except St. Lucia), may engage in all legal business activities under the laws of St. Lucia and generally serves as an excellent and popular “special purpose vehicle” (“SPV”) for more complex and sophisticated international business transactions.
St. Lucia is an independent country located in the Eastern Caribbean with a population of approximately 172, 884 (July 2008 est.). The legal system is based on the English common law tradition with a Westminster style parliamentary democracy and, as a member of the British Commonwealth, St. Lucia has a President as Head of State with executive powers resting with the Prime Minister and his Cabinet of Ministers. St. Lucia is also a member of the Caribbean Community.
As St. Lucia is not a dependent territory of any EU member state, a St. Lucian IBC may be useful in guarding against the harmful affects of the EU Savings Directive.
St. Lucia is easily accessible from the UK and Europe with direct international flights to the island’s main international airport (Hewanorra International Airport (UVF). There is also a good network of scheduled flights form the North American continent, with flights leaving from Miami and with further connections through Jamaica, San Juan, Martinique and Barbados.
Key Corporate Features
St. Lucia General Information
St. Lucia Company Information
St. Lucia Compliance
KEY CORPORATE FEATURES
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GENERAL INFORMATION
St. Lucia is a tropical island in the Caribbean, between the Caribbean Sea and the North Atlantic Ocean, north of Trinidad and Tobago. It has a fine natural harbour in the country’s capital of Castries, often frequented on the cruise ship “circuit” throughout the year. In terms of geographic size, it has a total area of 616 sq km, or comparatively about 3.5 times the size of Washington D.C.
Historically, the island was contested between England and France throughout the 17th and early 18th centuries, incredibly changing possession some 14 times! It was finally ceded to the UK in 1814.
Population
The population as at July 2008 estimates is approximately 172,884 (as mentioned above) and is broken down into ethnic groups comprising black (82.5%), mixed (11.9%), East Indian (2.4%), and other or unspecified (3.1%).
Political Structure
St. Lucia acquired total independence from the UK on the 22 February 1979. As a former English colony, the country has inherited the English common law tradition and parliamentary style government.
The present head of the Government is Prime Minister Stephenson King, who took over from Sir John Compton after his death in service in Government on the 7 September 2007. Their political party is called the United Workers Party or the UWP. The previous government was headed by Mr. Kenneth Anthony, of the Saint Lucia Labor Party or SLP.
The executive branch consists of the chief of state represented by the governor general, the head of government, and the cabinet appointed by the advice of the Prime Minister. The legislative branch is bicameral Parliamentary style consisting of the Senate and the House of Assembly. The Senate is comprised of 11 seats, 6 members of which are appointed on the advice of the Prime Minister, 3 on the advice of the leader of the opposition, and 2 after consultation with religious, economic and social groups. The House of Assembly is presently represented by the election results of the 11 December 2006, with the UWP party comprising 50%, the SLP 46.9% and other 3.1%.
The next election is scheduled to be held in December 2011.
Infrastructure and Economy
The Island has 2 main airports, Hewanorra International Airports and a smaller airport in the country’s capital of Castries, George F.L. Charles Airport. There is a convenient helicopter service (www.stluciahelicopters.com) between both airports as well as sea ferry service from Castries to Martinique and other Caribbean Islands.
The manufacturing sector in St. Lucia is one of the most diverse in the Eastern Caribbean, although tourism continues to be the main source of foreign exchange.
St. Lucia has progressed cautiously into the financial services sector and possesses a well regulated and progressive offshore sector.
Language
The official and spoken language is English.
Currency
Eastern Caribbean Dollar, although the US Dollar is also accepted throughout the country.
Exchange Control
None.
Type of Law
Common Law, based on English Common Law with local modifications and local statutes.
Principal Corporate Legislation
International Business Companies Act No. 40 of 1999.
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COMPANY INFORMATION
Procedure to Incorporate
St. Lucian Registered Agent incorporates IBC instantaneously online, thereby facilitating the formation of the company immediately i.e. within minutes. The Registered Agent then submits memorandum and articles of association to the St. Lucia Registry.
Restrictions on Trading
A St. Lucia IBC can engage in all legal trading activities not prohibited by the laws of St. Lucia or the IBC’s corporate documents (memorandum of association).
St. Lucia offers offshore banking, insurance companies, fund administration, all of which require license approval from the St. Lucia Regulator.
Powers of Company
A company incorporated in St. Lucia has the same powers as a natural person.
Language of Legislation and Corporate Documents
English legislation. Corporate Documentation in the form of Memorandum and Articles of Association can be produced in a different language to meet client’s requirements.
Shelf Companies Available
Yes
Time to Incorporate
Almost immediately online, although documents will take 2-3 days due to courier.
Name Restrictions
Company names that are identical or similar to an existing company in St. Lucia may not be used. Names that suggest a connection to the Royal Family or the Government of St. Lucia will also be refused.
Language of Name
Latin Alphabet. Any name in a language other than English must be accompanied by a translation to ensure that the name is not restricted.
Registered Office Required
Yes, must be maintained in St. Lucia and must be maintained at the office of a licensed Registered Agent.
Names Requiring Consent or License
Bank, building society, savings, loans, insurance, assurance, reinsurance, fund management, investment fund, Chamber of Commerce, university, municipal or their foreign language equivalents.
Note that an IBC/company can be incorporated with the name “Trustee” so long as that company is to be used solely for the private wealth matters of a person and not incorporated with the intention of providing trustee services to the world at large.
Suffixes to Denote Limited Liability
Limited, Corporation, Incorporated, Société Anonyme, Sociedad Anónima, S.A.M. (for Monaco), Lda., and their relevant abbreviations.
Disclosure of Beneficial Ownership to Authorities
No.
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COMPLIANCE
Share Capital
There is no normal share capital because there is no charge to stamp duty. The share capital can be in any currency.
Most common authorized share capitals are US$50,000, US$100,000, EURO100,000.
Those persons desirous of a public offering incorporate companies with authorized share capitals of GBP£10,000,000, for example.
In all of the above examples, there are no costs in terms of stamp duty on increases in share capital.
Classes of Shares Permitted
Registered shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights.
Taxation
An IBC does not pay any tax on its world-wide profits. A St. Lucia IBC may elect to pay tax at 1%.
Double Taxation Agreements
None.
Annual Government Fees
US$300, payable every year and due at the end of every 31 January
Financial Statements Required
No requirement to file financial statements.
Directors
The minimum number of directors is 1 (one). Directors may be natural persons or bodies corporate. They can be of any nationality and need not be resident.
Company Secretary
A company secretary is not a requirement under the Act.
Shareholders
The minimum number of shareholders is 1 (one).
Disclaimer
Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, it does not constitute legal or other professional advice. The Mercatoria Group does not accept any responsibility, legal or otherwise, for any errors or omission.
