A SIMPLIFIED GUIDE TO ESTABLISHING A

A SIMPLIFIED GUIDE TO ESTABLISHING A

BUSINESS IN SAINT LUCIA

The following permits and licenses are required for the establishment of a business in St. Lucia.

TRADE LICENSES

All foreign individuals and companies who intend to conduct business in St. Lucia require a trade license, which is issued by the Ministry of Commerce, Industry and Consumer Affairs. The application which is completed in triplicate is considered by the Trade License Advisory Board. The trade license is an annual one, which expires on December 3l,^ST in the year that it was granted. Applications for renewal must be made every year. Approval of a trade license may take one to three months. License fees are one thousand Eastern Caribbean dollars ($ 1,000 ECD) for a period of one year.

FACTS ON FISCAL INCENTIVES TO INDUSTRY FOR

LOCAL AND FOREIGN INVESTMENT.

(a) OBJECTIVES

Fiscal Incentives are granted to enterprises under the Fiscal Incentives Act of 1974, to facilitate local and foreign investment into the productive sectors of the economy. Export oriented manufacturing enterprises are especially encouraged to apply for fiscal incentives.

(b) FISCAL INCENTIVES OFFERED TO INDUSTRY

(i) Tax Holiday up to a maximum of fifteen (1 5) years.

(ii) Waiver of Import Duty and Consumption Tax on imported plant, machinery and equipment.

(iii) Waiver of Import Duty and Consumption Tax on imported raw material and packaging.

(iv) Carry forward of losses.

(v) Export Allowance - tax relief on exports earnings.

(c) CRITERIA

(i) The enterprise must be incorporated and registered in St. Lucia.

(ii) The enterprise must contribute to the economic development of St. Lucia.

(iii) The country's human and natural resources must be utilized.

(iv) The enterprise must train local personnel and upgrade its plant through technological transfer.

(v) The enterprise must form linkages with other economic sectors.

(vi) The enterprise must contribute to earnings in foreign exchange.

(d) OTHER SERVICES

Duty Free concessions on machinery, raw machinery and packaging are also granted to enterprises, which do not qualify for the full range of fiscal incentives.

(e) ADMINISTRATION

The Ministry of Commerce, Industry and Consumer Affairs has the administrative responsibility for fiscal incentives offered to industry.

(f) METHOD OF APPLICATION

Applications for fiscal incentives must be forwarded to:

The Honourable Minister for Commerce, Industry and Consumer Affairs,

Ministry of Commerce, Industry and Consumer Affairs,

NIS Building,

Block B,

4t@ Floor,

Castries,

St. Lucia.

A copy must be submitted to:

The Chairman,

The National Development Corporation,

P.0. Box 495,

Castries,

St. Lucia.

For further information please contact:

The Trade & Industry Officer,

The Ministry of Commerce, Industry and Consumer Affairs,

NIS Building,

Block B,

4^th Floor

Castries, St. Lucia.

Tel; (758) 452-1706/2627/452-2611 ext. 7411/2

Fax: (758) 453-7347.

ESTABLISHING A COMPANY

Incorporating a Company must be done through a lawyer registered in St. Lucia. Documents required are:

(1) Declaration of Compliance

(2) Memorandum of Association

(3) Articles of Association

These documents are to be filed with the Registrar of Companies and a fee of two thousand Eastern Caribbean dollars (ECD 2,000.00) paid to the same.

Upon incorporation, the company is issued a Certificate of Incorporation.

The Registrar's office is located on Peynier Street in Castries.

LOCAL TAXES AND FEES

Depending on its location in St. Lucia and the nature of its business, the company will be required to pay fees to the Castries City Council (located on Peynier Street, Castries) or respective town or village council. These relate to taxes on property and trading fees which are payable on an annual basis.

INDUSTRIAL ESTATES

The Government has a number of industrial estates on the island, which are managed by the National Development Corporation. Further information on rental fees can be obtained from the offices in Castries, St. Lucia.

WORK PERMIT

(a) Applications can be obtained from the Labour Department of the Ministry of Legal Affairs, Home Affairs and Labour.

There is a non-refundable application processing fee of EC $100.00

FEES CHARGED FOR WORK PERMIT

(1) Citizens or persons belonging to the Commonwealth Caribbean or CARICOM, for every period of 12 months or part of it for which the permit is valid

$2,000.00

(2) Citizens or persons belonging to any Commonwealth Caribbean or CARICOM, for every period of 12 months or part of it for which the permit is valid

$4,000.00

(3) Citizens or persons belonging to any country other Than those specified in (1) and (2) for every period of 12 months or part of it for which the permit is valid

$5,000.00

(4) Citizens or persons belonging to categories (1), (2) or (3) for a period not exceeding one month for which the permit is valid

$400.00

(5) Unskilled persons under categories (1), (2), (3) for every period of 12 months or part of it for which the permit is valid

$200.00

(6) Commercial sales personnel or professional: (except a national or resident of a CARICOM MEMBER STATE WHO IS ENTERING Saint Lucia temporarily for the purpose of engaging solely in promotion or marketing of goods on behalf of a company registered in a CARICOM Member State)

$300.00

7) Processing fee (non-refundable)

$100.00 (additional)

LAND OWNERSHIP REGULATIONS

If a company is desirous of developing land it must apply for permission to do so from the Planning Department of the Ministry of Finance, Planning. Information Services and the Public Service (First Floor, Block C, New Government Buildings John Compton Highway, Castries). Maps and plans should accompany the application, which must be made in triplicate. Failure by authorities to give a decision for development approval within ninety days may be deemed a refusal. The applicant bias the right to appeal..

In cases where the proposed development can have environmental implications, the Development Control Authority (DCA) of the Ministry of Finance, Planning, Information Services and the Public Service would authorise the conduct of an environmental Impact Assessment (EIA), the results of which would determine approval.

In the case of food operations, these would require a permit form the Division of Public Health of the Ministry of Health, Human Services, Family Affairs and Women (Chaussee Road, Castries). These permits are granted on an annual basis.

ALIEN LANDHOLDING LICENCE/CERTIFICATE

All non-nationals are required to obtain an Alien Landholding License, in order to purchase property In St. Lucia. The license, which is obtained from the Ministry of Planning and Development, has to be registered by a local solicitor.

The following documentation is required when applying for an Alien Landholding Licence:

(a) A cover letter addressed to the Permanent Secretary, Ministry of Finance, Planning and Development, indicating the purpose for which the license is being sought;

(b) A completed application form;

(c) A certified fingerprint form from the Royal St. Lucia Police Force. Alternatively a certified finger print form from the country where the applicant is domiciled or from the country of citizenship, must he submitted;

(d) A location plan and extract of the Land Register identifying the property to he purchased;

(e) A statutory declaration as required by law attesting to the correctness of the information contained in the application;

(f) Two colour passport size photographs;

(g) A treasury 'A' receipt confirming payment of the deposit of 25% of the full licence fee; calculated at 7.5% of the property value;

(h) A statement from a competent land valuer indicating the estimated market value of the property.

RESIDENCE PERMIT

You are required to complete an application form in order to apply for a residence permit. The application form can be obtained from the Home Affairs Department of the Ministry of Legal Affairs, Home Affairs and Labour.

The completed application form must be accompanied by three (3) photographs and a stamp valued at EC $11.50, purchased at a post office. The information is to be submitted to the Ministry of Legal Affairs, Home Affairs and Labour for consideration.

Applications with all the supporting documentation may be sent via mail or may be hand delivered to the office of the Permanent Secretary, of the Ministry.

National Development Corporation

27 Brazil Street.

Castries

St. Lucia

Tel: No. (758) 452-3614

tax. No. (758,) 452-1841

AREAS OF ACTIVITY RESERVED FOR NATIONALS

AREAS OF ACTIVITY RESERVED FOR NATIONALS

OF

ST. LUCIA

The following am areas of investment activity which Cabinet has decided to reserve for nationals.

a. Distribution - both retail and, except where conducted ex-factory, wholesale.

b. Import for the purpose of trading.

c. The operation of agencies and distributorships.

d. Operation of restaurants with the exception of top class specially type.

e. Rental agencies for homes, villas and apartments.

f. Real estate.

g. Construction (excluding ad hoc contracts), repairs and maintenance of buildings and other facilities.

h. Landscaping.

i. Services which nationals have the capability to provide including secretarial, clerical, hairdressing services, laundry, internal hire, transportation, vehicle and other repairs.

j. Advertising except where local technology is not sufficiently advanced.

k. Entertainment on a protracted basis.

l. Operation of guest houses of less than 10 rooms or with an investment of less than $600,000.00.

m. Operation of a manufacturing or processing plant in an area in which there is already adequate local productive capacity and in which the investment in the plant is below EC$250,000.00 and employment is offered to less than 10 nationals.

n. Printing where local technology is not sufficiently advanced.

o. Production of the following exclusively for the domestic market:

i) agricultural goods

ii) handicraft

iii) furniture

iv) soft drinks carbonated and non-carbonated

v) bread and pasta

p. Quarrying

q. Warehousing where capital investment is below $500,000.00

r. Heavy equipment hire and leasing

s. Tyre retreading and repair.

t. Road maintenance and repair.

Cabinet further agreed that despite the reservation on the above areas of business for nationals, a licence could, nevertheless, be awarded to non-national companies or persons in cases where local investment has not sufficiently been forthcoming or where the appropriate technology is not available locally.

TOURISM INCENTIVES ACT

SAINT LUCIA

PART III

Income Tax Benefits

11. Notwithstanding anything contained in the Income Tax Act, 1989 or any other law, this Part sall apply to any product that is declared to be an approved tourism product by an Order made under section 8.

12. (1) Subject to this section, the income accruing from any approved tourism product shall ve exempt where the construction of such approved tourism product or of any extensions to the approved tourism product started on or after the appointed date.

(2) No exemption under subsection (1) shall apply unless approval of such exemption is given by the Cabinet following an application in writing made to the Minister.

(3) Where a licence has been given in respect of a new hotel or any other approved tourism product under section 9, the Cabinet shall determine the period of exemption from tax on income as provided in subsection (1), to a maximum of fifteen years.

(4) Where any approved tourism product ceases to be used for the purpose for which it was specified to be used at the time it was designated an approved tourism product, during the tax holiday period, the exemption provided by this section shall cease to apply from the date of cessation of such use.

(5) Where any approved tourism product is sold during the tax holiday period but continues to be used for the purpose for which it was specified it was going to be used at the time it was designated an approved tourism product, the exemption provided by this section shall continue to apply to the new owner or the lessee, as the case may be, for the remainder of the period.

(6) Where a licence has been given in respect of any extensions to an existing approved tourism product under section 9, the Cabinet shall determine the period of exemption from tax on income as provided in subsection (1), buy not exceeding a maximum of ten years, that is attributable to such extension.

(7) Income attributable to an extension to an existing hotel under subsection (6) is defined as the same proportion of the total income accruing from the hotel as the number of additional bedrooms the extension bears to the total number of bedrooms in hotel.

(8) Income attributable to an extension to an approved tourism product other than an hotel shall be determined by the Comptroller of Inland Revenue.

(9) Where an approved tourism product is managed by or on behalf of a limited liability company, the company is entitled to distribute profits to shareholders or debenture holders as capital monies free of tax during the two years period following the end of the granted tax holiday period.

(10) The appointed date for the purposes of subsection (1) shall be determined by the Minister by an Order published in the Gazette.

PART IV

Customs Duty Exemptions

13. (1) Where a person has been granted an interim approval under Part II, the Minister may grant to that person a permit for importation free of customs duty and consumption tax, building materials, articles or equipment as specified in the permit.

(2) A permit is subject to the condition that the building materials, articles or equipments as specified shall be used exclusively for the construction and equipping of the tourism product for which the interim approval has been granted.

14. Every application for the grant of a permit under section 13 shall be in such form and contain such information and be accompanied by such documents as may be prescribed.

15. A permit granted under section 13 shall be in such form and shall be subject to such terms an d conditions as may be prescribed.

16. The holder of a permit may, upon the production of the permit to the Comptroller of Customs, import free of all import duty and consumption tax but subject to the terms of the permit such construction materials, articles or equipment as are specified in the permit.

17. Where the holder of a permit satisfies the Comptroller of Customs

(a) that any building materials, articles or equipment have been purchased by the holder of the permit in Saint Lucia in accordance with the terms of the permit;

(b) that customs duties were paid upon the importation of the building materials, articles or equipment; and

(c) the amount of the customs duties that have been paid, the holder of the permit is entitled to a refund of such customs duties paid.

18. (1) Where the holder of a permit satisfies the Comptroller of Customs that

(a) any building materials, articles or equipment have been purchased by the holder og the permit in Saint Lucia in accordance with the terms of the permit; and

(b) customs duties were paid upon the importation into Saint Lucia of the building materials, articles or equipment; and

the holder of the permit is entitled, subject to subsection (2), to be paid such sum as the Comptroller of Customs may think fit.

(2) No payment under this section shall exceed the lowest rates of customs duties that have been in force at any time since the date of purchase by the holder of the permit for the goods.

19. Every operator or owner of a tourism project for which building materials, article or equipment have been imported or purchased free of customs duty who, without authorisation, disposes of such goods other than as provided for in the permit, commits an offence and is liable on summary conviction to a penalty of

(a) three times the value of the building materials, articles or equipment disposed of; or

(b) repayment of money refunded on such goods under section 17 and 18; or

20. (1) Where the Minister is satisfied that any building materials, articles or equipments, for which a permit has been granted under this Act, are no longer required for the purpose of the tourism project on which the permit was based, the Minister may in wering authorise the holder of the permit was based, the Minister such building materials or articles in such manner and upon such conditions as the Minister may think fit.

(2) No materials, articles or equipment shall be disposed of under subsection (1) within three years from their day of purchase unless the holder of the permit has

(a) paid to the Comptroller of Customs; or

(b) given security to the satisfaction of the Comptroller of Customs that he will pay,

al customs duties or refunds given under sections 17 and 18 applicate to the goods to be disposed of.

21. The Comptroller of Customs may require that any articles or equipments imported into or purchased in Saint Lucia under a permit, be marked in a manner prescribed.

22. (1) Notwithstanding section 26, where any articles or equipments have been imported into or purchased in Saint Lucia under a permit, the holder of the permit shall make an inventory, to the satisfaction of the Comptroller of Customs, of all such articles, and the inventory shall be kept by the holder of the permit while the permit subsists and thereafter it shall be kept by the manager or person in charge of the tourism project.

(2) Any person who fails to comply with subsection (1) commits an offence and is liable on summary conviction to a penalty of two housand five hundred dollars.

23. If the Minister is satisfied that the holder of a permit has

(a) obtained the permit by any false statement;

(b) abused or misused the permit;

(d) failed to pay any sum payable under this Part,

the Minister may by written notice to the holder of the permit either suspend the operation of the permit for such time and subject to such conditions as may be specified in the notice or revoke the permit.

(2) In addition to suspending or revoking a permit, the Minister may, in a case described in subsection (1), order the holder of the permit to pay any relevant duties or to repay any sums paid under section 17 or 18 in respect of any building materials, articles or equipments obtained under the permit, and any sums so ordered to be paid are recoverable in the manner provided by the Code of Civil Procedure.

24. (1) Subject to subsection (2) a permit expires upon the revocation of the interim approval of the rourism project in respect of which the permit was granted.

(2) Where the construction of the tourism project in respect of which a permit has been granted is completed for the purpose of Part II but in the opinion of the Minister not complete as far as the acquisition of building materials, articles or equipment is concerned, the Minister may extend the permit for such further period not exceeding twelve months as the Minister may consider adequate in the circumstances.

25. (1) A permit is transferable only with the written consent of the Minister.

(2) A person who

(a) transfers or attempts to transfer a permit without the consent of the Minister; or

(b) uses of attempts to make use of a permit transferred to him without the consent of the Minister

commits an offence and is liable on summary conviction to a fine of five thousand dollars.

(3) The Minister may, in his discretion, revoke, or suspend for such period as he thinks proper, a permit where the holder of the permit is convicted of an offence under subsection (2)(a) or where in the opinion of the Minister the holder of a permit facilitated the commission of an offence under subsection(2)(b).

26. (1) Where under his act, any articles, or equipment have been imported free of customs duty or where customs duty paid has been refunded, the Comptroller of Customs may

(a) within the period of three years from the date of importation of any such articles or equipment; or

(b) until the disposition of such goods in accordance with subsection (1) of section 20, require any owner or operator of the tourism project for which such goods have been imported, to

(i) keep such record in a form containing such particulars as may be required by the Comptroller of Customs on any such articles or equipments; and

(ii) cause such articles or equipment to be marked with such mark and in such manner as may be required by the Comptroller of Customs; and

(iii) permit the Comptroller of Customs or any person authorised by him at all reasonable times to inspect and take extracts of such records and to have access to any premises under his control for the purpose of examining any such articles or equipment.

(2) An owner or operator of a tourism product who contravenes this section or willfully delays, hinders or obstructs the Comptroller of Customs or any person authorised by him in writing, in the exercise of his powers under this section commits an offence and is liable on summary conviction to a fine not exceeding five thousand dollars.