• The practice of the firm is varied.

    "Property | Investment | Corporate | Tax | and More..."
ADMIRALTY
The Firm represents The West of England Ship Owners Insurance Services Limited. The Admiralty jurisdiction of the High Court of Grenada is contained in the Administration Act 1956 of England. The Admiralty procedure is regulated by the Civil Procedure Rules of the High Court which Rules are similar to those of England. The Shipping Act No. 47 of the 1994 regulates the registration of ships, transfers of shares, mortgages, and all matters related to merchant shipping.
AVIATION
Aviation is regulated by the Civil Aviation Act of 1991 and the Civil Aviation (Air Navigation) Regulations 1997. The Directorate of Civil Aviation in Antigua is responsible for the regulation of aviation in Grenada. This Directorate is common to the nine countries of the OECS.
BANKING
The firm has extensive Banking Law practice and also works for other lending institutions such as Insurance Companies. The Banking Act No. 19 of 2005 regulates all Banking business in Grenada, save Off Shore Banking.
BANKRUPTCY
The Bankruptcy and Insolvency Act (“the Act”) was passed in Grenada on February 19th, 2016 and came into force on September 9th of that same year.

The Act is designed “to provide for the modernisation of the law relating to bankruptcy and insolvency of individuals and corporations; to provide for the repeal of the Bankruptcy Act; to create the office of Supervisor of Insolvency; and to provide for related matters.”

It provides a comprehensive regime that sets out the procedures available to both creditors and debtors however it does not replace the winding up procedures delineated in the Companies Act.

Among other things, the Act provides for the High Court to have jurisdiction in matters relating to bankruptcy and insolvency and ensures that companies as well as individuals pay their taxes on time to prevent a declaration of bankruptcy to avoid taxation.

The winding-up provisions with respect to companies is unaltered. See Insolvency below.

INSOLVENCY
There is no Insolvency Act in Grenada. Corporate insolvency is governed by the Company’s Act 1994 which Act is common to the nine OECS Territories.
CIVIL LITIGATION
Grenada is part of the Eastern Caribbean Supreme Court whose jurisdiction runs throughout the OECS Territories. Grenada's final Court of Appeal is the Privy Council in London and the firm has litigated several cases before that court in conjunction with its London agents, Glovers. The new Civil Procedure Rules were introduced in 2000 and are a hybrid of The English 1998 Rules and Canadian Rules
COMPANIES
The modern Company’s Act of 1994, shared with the OECS Territories, regulates all aspects of company law. There is no need to obtain governmental approval to incorporate a company in Grenada. However, where a company is to own land an Aliens (Land Holding) Licence will be required if that company is owned by non nationals (see Real Estate below)
INCOME TAX
This is regulated by the Income Tax Act of 1994. The rate of tax is 30% for corporations. For individuals $36,000.00 per annum is tax free, above $36,000.00 and up to $60,000.00 is 15%. Thereafter above 60,000 per anum the rate is 30%. Corporations are allowed the usual deductions for expenses incurred in earning the income. There is a Withholding Tax of 15% Rental income is also taxed at 30% There is no tax on dividends or on interest earned. There is no Capital Gains Tax or Inheritance Tax.
CONSTITUTIONAL LAW AND HUMAN RIGHTS
Grenada like the rest of the former British Caribbean Colonies enjoys the benefit of a written constitution protecting fundamental rights and freedoms. These protections apply to anyone irrespective of their citizenship. Of particular importance is the right to protection of property. Although land may be acquired by the Government such acquisition will only be lawful if it is effective pursuant to a law making provision for prompt payment of full compensation.
CONSTRUCTION LAW
The firm has been engaged in several construction law disputes resulting in litigation up to the Privy Council. Some of these disputes involved advance payment guarantees and performance bonds.
COPYRIGHT
Copyright is protected by the Copyright Act which is a modern act defining copyright and stipulating the protections afforded. These definitions and protections are in keeping with the norm.
FAMILY
The Matrimonial Causes Act 1973 of England as well as that Country’s Family Proceedings Rules apply to Grenada.
EMPLOYMENT
Grenada introduced the Employment Act in 1999 which provides for conditions for employment, discipline and termination. At the same time the Labour Relations Act was introduced which deals with Trade Unions and their certification and dispute procedures. The firm has extensive experience in this area having represented both employers and major trade unions.
INSURANCE
The area of law is regulated by the Insurance Act which provides for the registration of Insurance Companies, Brokers and Agents and regulation of the industry generally. Regulation is overseen by the Supervisor of Insurance whose is the Grenada Authority for the Regulation of Financial Institutions (GARFIN). The Firm represents several major Insurance Companies and has taken insurance litigation up to the Privy Council
MEDIATION
Mediation is becoming more common place in Grenada after a slow start. The new Civil Procedure Rules provide for court - ordered mediation and this has proved to be quite a success with a reported 55% success rate. Our Mr. James Bristol is an accredited Mediator by the Centre for Dispute Resolution in England.
MORTGAGES
In Grenada, mortgages are effected by a transfer of the legal estate in the property to the Lender. Generally, the lender’s attorney prepares the mortgage at the cost to the borrower. The fee for this does not exceed 2% of the amount borrowed. There is a sliding scale so that the higher the principal the lower the percentage fee. In addition to the attorney’s fee, stamp tax to the Government applies at the rate of approximately 1% of the principal.
REAL ESTATE

Acquisition of real estate in Grenada is an extremely simple process. The first step is to obtain the services of a good attorney who would ensure that the title is good.

The purchaser’s attorney prepares the deed from the seller at a maximum fee of 2% of the purchase price, on a sliding scale so that the higher the purchase price the lower that percentage is.

There is also stamp tax due to the Government of approximately 1% of the purchase price.

Acquisition of land by non Grenadian

A non Grenadian must obtain the requisite Aliens (Land Holding) Licence from the Government of Grenada in order to own land. The process usually takes no more than three months and the following documentation is required in support of an application

duly completed Application Form
Police Certificate of Character from Country of Origin
Bankers’ Reference from Country of Origin
two Character References from Country of Origin

There is no fee for an Alien’s (Land Holding) Licence but a higher rate of Property Transfer Tax is charged (see below).

PROPERTY TRANSFER TAX

Anyone selling property in Grenada must pay this tax at the rate of 5% of the market value which is usually the price.

Non-Grenadians pay an additional 10% on sale so that the total payable on sale by a non Grenadian is 15%.

Additionally a non Grenadian purchasing must pay 10%.

Property may also be bought through a company incorporated in Grenada but this does not remove the necessity for an Aliens (land Holding) Licence.

Changes are in the pipeline to reduce the Property Transfer Tax on sales and purchases in a development of more than forty rooms, which is operated through a central management as an hotel. For example, this new concession may apply to condiminum developments where purchasers agree that the developer will manage the upkeep and letting of the property. These changes will be posted once they come into effect.

The Property Transfer Tax Act has now been amended to reduce the tax for both seller and buyer within an Approved Tourism Development. A developer is responsible for securing such approval.

Once approved, the rates of tax are 5% to each of the buyer and the seller on the first transfer relating to a particular property and at the rate of 2.5% on any subsequent transfer.

Property Tax

On domestic property the annual property tax is .01% of the value assessed by the Government for that purpose.

TRADE MARKS
Our extensive trade marks practice is handled by HH&B Trademarks Services Limited. In 2012 the new Trademarks Act was passed which established the new Grenada Trademark registry. prior to this Grenada relied on the re-registration of United Kingdom Trademarks and upon such registration those Trademarks were given similar protection.
Saturday, December 15, 2018