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.

The firm has extensive Banking Law practice and works for other lending institutions such as insurance companies. The Banking Act No. 19 of 2005 regulates all banking business in Grenada, except for offshore banking.

The Bankruptcy and Insolvency Act (“the Act”) was passed in Grenada on February 19^th, 2016, and came into force on September 9^th, 2016.

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.

There is no Insolvency Act in Grenada. Corporate insolvency is governed by the Companies Act 1994 which is common to the nine OECS territories.

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. Henry Henry & Bristol 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.

The modern Companies 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).

This is regulated by the Income Tax Act of 1994. The rate of tax is 28% for corporations. For individuals, income of or below $36,000.00 per annum is tax free. For income above $36,000.00 and up to $60,000.00 per annum, the rate of tax is 10%. Thereafter, income above $60,000 per annum has a tax rate of 28%. Corporations are allowed the usual deductions for expenses incurred in earning the income. There is a Withholding Tax of 15% and rental income forms part of assessed income. There is no tax on dividends or on interest earned. There is no Capital Gains Tax or Inheritance Tax.

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.

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.

Corporate services are handled by HHB Corporate Services Limited. The services include incorporation of companies, registration of business names, provision of registered addresses, preparation and filing of annual returns, registration of businesses for tax and national insurance purposes, and corporate secretarial services.

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.

The Matrimonial Causes Act 1973 of England and the Family Proceedings Rules apply to Grenada.

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.

This 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, which 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 is becoming more common place in Grenada after a slow start. The new Civil Procedure Rules provide for court-ordered mediation, which has proven to be quite a success with a reported 55% success rate.

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, which means that the higher the principal, the lower the percentage fee will be. In addition to the attorney’s fee, stamp tax to the Government applies at the rate of approximately 1% of the principal.

Acquisition of real estate in Grenada is an extremely simple process. The first step is to obtain the services of a good attorney who will 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. This is a sliding scale – the higher the purchase price, the lower the percentage will be.

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

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

Duly completed Application Form
Police Certificate of Character from Country of Origin
Banker’s 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).

Our extensive trademarks practice is handled by HHB Intellectual Property 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.