An incorporated body (company) is a legal person in its own right and can acquire and own all types of property in its name. This may include real estate (land and house), cash in the bank, vehicles, shares in a company…you get the point. So the company is able to own any kind of property an ordinary individual would be able to own personally.
In St. Vincent and the Grenadines (SVG), a local company may own property in its name if half or more than half of the company’s directors or shareholders, as individuals, are legally able to own land in SVG. Otherwise, the company will need to apply for an Alien Landholding License (ALHL).
For example, John Brown and Mary Brown own property in SVG, but their children, Jane and Junior are not residents, citizens, nor do they have ALHL. John and Mary wish to transfer the property to their children who do not wish to apply for an ALHL. John and Mary will form a company with the directors being John Brown and Mary Brown, and the shareholders being John Brown, Mary Brown, Jane and Junior (or however else you wish it to be structured). Since half of the directors or shareholders (John and Mary) already have ALHL, then the company will be able to own property in SVG.
However, in the event that John or Mary or both of them die, less than half of the company’s directors or shareholders become “unlicensed aliens”, and therefore the company would not meet the requirements to continue to own the property without offending the law. In those circumstances, the company’s Articles of Incorporation would have to be amended to add other directors or shareholders so as to meet the requirements. A local lawyer can act as a nominee director or shareholder in these circumstances but with the understanding that the nominee acts only on the instructions of the directors or shareholders.

How it Works

John and Mary, the current owner/s of a beautiful 18,000 square feet property in Bequia, will form a company and then sell or gift their property to the company. The company now becomes the owner of the property, with John and Mary (and any other) being the directors. The company will issue shares and John, Mary and their children will own all the shares. A nominee director (the lawyer) may be appointed to manage the company and ensure compliance. If after John and Mary die and their children decide that they wish to live in SVG, they will have the option to dissolve the company and hold the property in their names personally. Alternatively, the company can sell the property if the children do not wish to live in SVG. The lawyer will ensure that annual regulatory compliance of the company is strictly maintained, ie, balance sheets to be filed yearly, a company address to be maintained (you can use your lawyer’s address), annual meetings to be held, tax requirements are met, among other things.

Benefits

1. The main advantage of this structure is that it allows non-citizens, non-residents or “unlicensed aliens” to acquire ownership in property in SVG.
2. You do not have to worry about the long probate or administration process that comes with Wills and Intestacy, and you definitely do not have to worry that your loved ones will be hit with huge legal fees that eat up your estate before it is even delivered into their hands!
3. It is the directors of the company who hold the decision making power, so changes can be made easily by amending the Articles of Incorporation. The shareholders may not have management or voting rights, so the parents can have greater control over the company and its management. Truly, the company may be the most flexible estate planning tool available.
4. The company protects your assets from lawsuits or creditors, so if you die leaving debts, you can be assured that your assets are protected for the benefit of your loved ones.
5. Finally, the ownership is continuous as long as the company stays in existence and does not sell or transfer the property. It is perfect if you wish to hold property for long-term or investment purposes or to provide for your future heirs.

—Posted by Meisha S. Cruickshank. Meisha is a Barrister and Solicitor in St. Vincent and the Grenadines. She practices in the areas of Land and Property Law, Estate Planning and Family Law. You can reach her by phone at 784-451-5669 or email at meishacruickshank@gmail.com.