The island nation of Antigua and Barbuda is well known for its natural beauty, sunny, tropical weather and pristine beaches. But what’s not so well-known is that the Caribbean country is an attractive destination for international companies and high net-worth individuals who wish to shelter their money from taxation abroad. That said, company formation in Antigua and Barbuda is a relatively straight-forward process.
Before diving into company formation in Antigua and Barbuda, it’s important to consider which type of business one wishes to incorporate there, and in the case of the tax advantages on offer, whether or not the business will generate profits on or off the island.
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Company formation in Antigua and Barbuda: Types of businesses
- Private or public Limited Liability Companies (LLCs) – Antigua and Barbuda-based companies that do business on the islands. Owners, directors and/or shareholders enjoy limited liability for the debts and obligations of the LLC.
- Non-profit companies – A non-profit organization must have one of the following focuses in order to qualify: patriotic, religious, philanthropic, charitable, educational, scientific, literary, historical, artistic, social, professional, fraternal, sport or athletics.
- International Business Corporations (IBCs) – Companies or investors that set up a subsidiary of their global operations in Antigua and Barbuda. This can be a physical or on-paper-only presence. These entities are free to do business internationally without limitations on international money transfers.
Businesses that do company formation in Antigua and Barbuda with the intention of doing business/generate profits in the domestic market are subject to a 25-percent income tax rate. For the purposes of this article, we will focus on the type of company where the real attraction lies – IBCs.
Also known as offshore companies, global corporations or investors domiciled in Antigua and Barbuda as an IBC enjoy a number of perks.
Company formation in Antigua and Barbuda: Advantages of registering as an IBC
Investors, companies, and/or multinational corporations that register in the island nation as an IBC will enjoy the following benefits:
- IBCs can conduct international business with no limits on where the corporation moves its money
- IBCs are not required to pay any tax in Antigua and Barbuda
- No requirement to file accounts
- Company ownership is not publicly disclosed
- IBCs have the option to establish a physical office in Antigua
- They are free to bank anywhere
- They’re exempt from paying business-related customs and duties
If readers of this article think that making a move into Antigua and Barbuda sounds attractive, they should also consider company formation in Barbados. The Caribbean neighbors share many of the same tax advantages, but Barbados does not suffer from the negative connotations that come with being labeled a tax haven.
There are even more goodies on offer for foreign investors who don’t mind making a larger footprint on the island nation. Aside from company formation in Antigua and Barbuda, foreigners who invest $100,000 USD or more on the island are entitled to apply for dual citizenship. By purchasing a home or other property, contributing to the state university fund or making any kind of business investment, the investor and his/her spouse, children, parents and siblings are all eligible to become citizens of Antigua and Barbuda.
And since there is no wealth or inheritance tax or capital gains tax on any global income, the investor’s children and other family members can receive their inheritance tax-free.
Company formation in Antigua and Barbuda: A 12-step guide
The following lists outline the incorporation stage, as well as the International Business Corporation registration stage, of company formation in Antigua and Barbuda:
1. Company incorporation:
- Search for and register business name
- Complete the Business Registration form
- Request statement of particulars
- Collect filed documents from the Antigua and Barbuda Intellectual Property and Commerce Office (ABIPCO)
- Register for business and statutory deductions
- If approved, the company will be issued a Business Name Registration Certificate
2. IBC registration:
- Two company representatives who are both citizens and residents of Antigua and Barbuda are required to begin the IBC application process. At least one of those reps should be an attorney.
- Submit all signed articles of incorporation
- Draw up and submit a Memorandum of Association (MOA)
- Provide the names of the company’s directors
- Submit all details about the company’s official address overseas
- An application for an International Business Charter must also be filed
Frequently asked questions when incorporating a company in Antigua and Barbuda
According to our experience, these are the most common questions and doubts of our Clients when incorporating a company in Antigua and Barbuda.
Yes, foreigners can own and operate businesses in Antigua and Barbuda. The country welcomes foreign investment and offers various options for foreign entrepreneurs to establish businesses.
Registering a company in Antigua and Barbuda typically takes around 8-10 weeks, depending on the type of business entity and the completeness of the application.
In Antigua and Barbuda, an LLC stands for “Limited Liability Company.” An LLC is a legal entity that combines elements of both a corporation and a partnership, providing its members with limited liability protection and flexibility in management.
Several business entities in Antigua and Barbuda can provide limited liability to their owners, including companies limited by shares, limited liability companies, and International Business Companies (IBCs).
The main characteristics of an LLC in Antigua and Barbuda typically include:
– Limited liability for its members.
– Flexibility in management structure.
– Pass-through taxation, where income is reported on the members’ individual tax returns.
– Simplicity in formation and maintenance.
– Ability to be used for various business purposes.
Biz Latin Hub can help you with company formation in Antigua and Barbuda
At Biz Latin Hub, our multilingual team of company formation specialists has broad experience supporting foreign executives starting businesses throughout Latin America and the Caribbean. We have offices in over 16 countries around the region and trusted partners in many more. With our strong track-record of providing comprehensive back-office services to foreign investors — including legal, accounting, and recruitment support — we are ready to help you achieve your business goals in Antigua and Barbuda.
Reach out to us now for personalized assistance or a free quote.
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The information provided here within should not be construed as formal guidance or advice. Please consult a professional for your specific situation. Information provided is for informative purposes only and may not capture all pertinent laws, standards, and best practices. The regulatory landscape is continually evolving; information mentioned may be outdated and/or could undergo changes. The interpretations presented are not official. Some sections are based on the interpretations or views of relevant authorities, but we cannot ensure that these perspectives will be supported in all professional settings.