St. Lucia

Business Environment

St. Lucia is a member of the Caribbean Community (Caricom). St. Lucia is a member of the Organisation of Eastern Caribbean States (Other members: Anguilla, Antigua and Barbuda, the British Virgin Islands, Dominica, Grenada, Montserrat, St. Kitts and Nevis, and St. Vincent and the Grenadines), and is a member of the Eastern Caribbean Supreme Court. St. Lucia is also a member of the Eastern Caribbean Central Bank, which issues a common currency and is the monetary authority for a group of eight jurisdictions: Anguilla, Antigua and Barbuda, Dominica, Grenada, Montserrat, St Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines.

St. Lucia's registry of international business companies handles incorporation and registration procedures passed through registered agents. The Financial Services Supervision Unit is the main regulatory body under the International Business Companies Act, the Registered Agent and Trustee Licensing Act, the International Trusts Act, the International Insurance Act, the International Banks Act and the International Mutual Funds Act. The Financial Centre Corporation handles the promotion of the jurisdiction and the online registry called Pinnacle St. Lucia (www.pinnaclestlucia.com). The Internet site allows name searches, reservations, company registration, access to company records, and requests for certificates and certified copies. There are no capital requirements for international business companies. Class A banks must have fully paid-up capital of at least US$1 million. Class B banks must have fully paid-up capital of at least US$250,000. Capital requirements for insurance companies range from US$50,000 to US$100,000.

The G-7's Financial Stability Forum listed St. Lucia among group three jurisdictions - those regarded as having the lowest quality financial supervision. The Organisation for Economic Cooperation and Development listed St. Lucia as among 35 tax havens in 2000.

Taxes

International business companies can choose either to be exempted from tax or to be liable to tax at a rate of 1%. Offshore companies are free from exchange controls.

Guide: Setting Up a Business in St. Lucia (commercial operations)

Contacts
Financial Centre Corporation
NIS Building, Ground floor
The Waterfront
Castries, St. Lucia
Tel: (1) 758 4557700
Fax: (1) 758 4557701
E-mail: fcc@stluciaoffshore.com
Internet: www.pinnaclestlucia.com/

Ministry of Commerce, International Financial Services and Consumer Affairs
4th Floor, Block B
Waterfront, Castries
St. Lucia
Tel: (758) 468-4219 / 453-7055
Internet: http://commerce.gov.lc/

* Request Information from the Commercial Information Centre

Latest available figures

General Information
Independent parliamentary democracy. France ceded the island to the UK in 1814. Self government was granted in 1967 and independence in 1979. Population (2001): 158,018. Capital: Castries.

Currency
East Caribbean dollar pegged to the US dollar at US$1 = EC$2.70.

Legal system
Based on English common law. Appeals are heard by the Eastern Caribbean Supreme Court. The final court of appeal is the Privy Council in the UK.

Government
The head of state is the British monarch who is represented by a governor-general. The bicameral parliament consists of the Senate and the House of Assembly. The 11 members of the Senate are appointed on the advice of the prime minister, the leader of the opposition, and religious, economic, and social groups. The 17 members of the House of Assembly are elected by popular vote from single-member constituencies for five-year terms.

Governor-general: Pearlette Louisy
Prime minister, finance, international financial services, economic affairs and information: Kenny Anthony

Cabinet
Deputy prime minister, education, human resource development, youth and sports: Mario Michel
Commerce, tourism, investment, consumer affairs: Philip Pierre
Communications, works, transport and public utilities: Felix Finisterre
Home affairs, gender relations: Sarah Lucy Flood-Beaubrun
Development, planning, environment, and housing: Walter Francois
Health, human services, family affairs: Damian Greaves
Labour relations, public service, co-operatives: Velon John
Social transformation, culture, local government: Menissa Rambally
Agriculture, forestry and fisheries: Senator Calixte George
Attorney general, and minister for justice: Senator Petrus Compton
External affairs, international trade, civil aviation: Senator Julian Hunte

Elections
The government is formed by the Saint Lucia Labour Party (SLP), which won 14 seats in the 3 December 2001 elections. The United Workers Party won three seats. The next elections are due by December 2006.

Political parties
Saint Lucia Labour Party (leader Kenneth Anthony)
United Workers Party (leader Morella Joseph)

Economic overview
The service sector, especially tourism, makes up 73.4% of GDP, industry 19.3% (of which manufacturing 5.7%), and agriculture 7.4%. About US$32 million worth of bananas were exported in 1999. Tourism accounts for 28% to the island's GDP and 20% of employment. Total visitor arrivals in 2000 rose 12% over 1999 to 772,972. Visitor arrivals by air: 285,422. Cruise ship passengers: 487,550.

Gross domestic product (1999)
US$514.8.4 million representing a 3.5% real GDP growth ; GDP growth was estimated at 0.71% in 2000.

Trade (goods and services) (1999)
Exports $426 million; imports $446 million; current account deficit US$54 million.

Inflation rate (CPI) (Jan-Sept. 2001)
1.9%

Labour force
73,000; unemployment 15.7% (December 1999)

Government accounts
Revenues US$190.7 million; current expenditure US$161.1 million; capital expenditure US$107.9 million (budget 2000/2001). Financial year: 1 April-31 March.

Public holidays (2003)
1-3 January (New Year's Day celebrations), 22 February (Independence Day), 18 April (Good Friday), 21 April (Easter Monday), 5 May (Labour Day), 9 June (Whit Monday); 19 June (Corpus Christi); 4 August (Emancipation Day); 6 October (Thanksgiving Day), 13 December (St. Lucia Day), 25 December (Christmas); 26 December (Boxing Day).

Time zone
GMT minus 4 hours. There is no summer time clock change.

Sources/Links
Government of St. Lucia
Ministry of Commerce, International Financial Services and Consumer Affairs
Pinnacle St. Lucia (Online Registry)
Eastern Caribbean Central Bank