Structuring a Commercial Enterprise: Choosing the Right Entity in Grenada

Founders often focus on the commercial opportunity and leave structure as an afterthought. Yet the choice of vehicle affects personal liability, how decisions are made and how easily the business can bring in partners or investors.

Understanding the options

Common choices include operating as a sole trader, forming a partnership or incorporating a company. Each carries different consequences for liability, administration and ongoing obligations.

Governance from day one

Where there is more than one owner, clear constitutional documents and, where appropriate, a shareholders' agreement set expectations on decision-making, contributions and exit before any disagreement arises.

Planning for growth

A structure that suits a small venture today should be capable of accommodating investment or expansion tomorrow. Taking advice at the outset is generally simpler and less costly than restructuring later.