When you're ready to expand your company abroad, you might want to create a subsidiary. Before you do, it's important to understand the complexities of the process and what your alternative options...
Read MoreWhen you're ready to expand your company abroad, you might want to create a subsidiary. Before you do, it's important to understand the complexities of the process and what your alternative options are. Globalization Partners can help ease your company's transition with subsidiary outsourcing.
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When you’re ready to expand your company abroad, you might want to create a subsidiary. Before you do, it’s important to understand the complexities of the process and what your alternative options are. Globalization Partners can help ease your company’s transition with subsidiary outsourcing.
Your Saint Vincent and the Grenadines subsidiary setup will begin at the Commerce and Intellectual Property Office (CIPO). You’ll have to earn approval for your company name by completing a name search and reservation. When the CIPO approves your name, you’ll have 90 days to complete the incorporation process.
Your next step will involve working with a lawyer or the company director to legalize all the necessary incorporation documents. These materials include Articles of Association and a statutory declaration by an attorney if you work with one.
You’ll file these documents with a completed application at the Commercial Registry under the CIPO. You should receive a certificate of incorporation within a few days if you include all necessary materials.
After receiving your certificate of incorporation, you’ll need to file your company bylaws and notice of appointment of secretary. The CIPO will send you a company registration certificate in return.
Every operating company on the islands needs a license of some kind, though it will vary depending on your industry. After you have an incorporated and registered company, you can apply for the appropriate license.
Your last steps will be registering with the Inland Revenue Department (IRD) to file taxes and the National Insurance Services (NIS) to make contributions.
Your subsidiary must have Articles of Association and bylaws when applying for incorporation. These documents should detail how you will run your business, and the CIPO will use them to determine whether your company is compliant with all applicable laws.
Alongside these materials, your company must have at least one director and one secretary. Public companies can only have up to three directors, but there is no limit for private companies.
Your entity will also need a registered office when you apply for incorporation. You will need to note this location on your application, so make sure you rent or own an appropriate space before you begin the application process.
While incorporating a company can be a challenge, it offers its benefits once the process is complete. Your subsidiary will have a separate identity from your parent company, which has cultural and legal advantages.
On the cultural side, your subsidiary team will get to foster a unique workplace environment that sets it apart from your parent company. This culture will make your business more comfortable for residents and give it a chance to thrive in the local market.
On the legal side, your entity will have separate liability from your parent company. If it runs into legal trouble, the costs won’t fall on your parent company, and you can reduce your damages.
The two essential resources you need for subsidiary setup are money and time. While the application process comes with a series of processing fees, setting up a business comes with additional costs. Consider the price of traveling to and from the country, buying or renting an office, and working with an attorney to legalize your incorporation materials.
Your complete registration process may take as little as 10 days, but this time frame doesn’t account for finding a property, identifying your directors and secretary, or creating your Articles of Association and bylaws. If you’re considering establishing an entity, it’s wise to take stock of your resources to ensure you’re prepared.
Globalization Partners offers all the benefits of a subsidiary without the lengthy incorporation process. As your Employer of Record (EOR), we’ll hire your team through our entity so you can enjoy a unique identity and offload all the risk. Get in touch to learn more.
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