Advantages of Anguilla
- UK Overseas Territory
- Well-regulated financial services industry
- Common law legal system based on English law
- Well developed professional infrastructure
- Same day company incorporation service
- World standard telecommunications system
- Easy air access to North America and Europe
- Neutral tax jurisdiction
- No foreign exchange restrictions
- Multi-year work permits available for professionals within the financial services industry
Anguilla is one of Britain’s Overseas Territories in the Caribbean and as such it enjoys a high degree of political stability. All political parties are strongly committed to the growth of Anguilla as a quality financial services centre.
Although the country is essentially self governing, its legislature is the democratically elected House of Assembly. The Constitution gives the British appointed Governor certain fundamental reserve powers. All legislation must be assented to by the Governor as H.M. The Queen’s representative.
The significant growth in Government revenues earned from the financial services sector over the last few years is a testament to the success of the policies to date. Anguilla is well positioned as a major player in the international arena.
Anguilla is a common law jurisdiction. Its judicial system is administered by the Eastern Caribbean Supreme Court the appeal process culminates with the Privy Council. The Court system is serviced by a number of firms of fully qualified and experienced lawyers.
The professional infrastructure is well developed, with major accounting firms represented on the island. The telecommunications system is of a world standard providing direct access worldwide.
- The Proceeds of Criminal Conduct Act 2000
- The Money Laundering Reporting Authority Act 2000
- The Company Management Act 2000
- The Trust Companies and Offshore Banking Act 2000
- International Business Companies Act 2000
- The Companies Act 2000
- The Limited Liability Company Act 2000
- The Limited Partnership Act 2000
Unlike many financial services centres, Anguilla is truly a neutral tax jurisdiction. There are no income, capital gains, estate, profit or other forms of direct taxation on either individuals or corporations, whether resident in Anguilla or not. This makes Anguilla a very attractive location for financial services professionals to base themselves. The Government recognises the desirability of expanding Anguilla’s professional infrastructure and has very recently established a new programme allowing for multi-year work permits of up to four years duration and relaxed residency rules.
There are no exchange controls in Anguilla. Although the official currency is the Eastern Caribbean Dollar the United States Dollar is commonly used.
Anguilla has three types of companies:
- The Ordinary Company
- The International Business Company
- The Limited Liability Company
Companies must be incorporated through a local agent all of whom, are licensed under the new Company Management Ordinance and regulated by the Inspector of Company Managers. The Government and private sector are working closely together to establish best practice guidelines for company managers. These will be designed to ensure that through the application of due diligence procedures and the adoption of high standards of practice, Anguilla attracts the best business and that its reputation is maintained.
The relevant IBC, LLC, Limited Partnership and Trust Ordinances all provide a statutory exemption from all forms of corporate, income withholding or other like taxes in respect of international Anguilla Companies business.
Companies are usually formed instantly using the ACORN system.
The Ordinary Company
The ordinary company, which can be used both within Anguilla and as an offshore vehicle, is governed by the new Companies Ordinance. The Ordinance contains many attractive features:
- Companies may be incorporated by one incorporator and have one director.
- Companies may be limited by shares, by guarantee or by both shares and guarantee.
- The Ordinance abolishes the doctrine of ultra vires.
- Companies may acquire, purchase or own their own shares.
- Filing formalities have been streamlined.
- Companies may continue in or out of Anguilla.
- A special class of Specific Private Companies that are exempted from some record keeping and accounting requirements
The International Business Company
The International Business Company is based on the traditional model and provides for the easy incorporation and subsequent administration of a flexible and cost effective corporation.
Companies incorporated in any other jurisdiction may be continued in Anguilla as an IBC. An Anguilla IBC can, where the laws of another jurisdiction permit, redomicile to such jurisdiction.
The Limited Liability Company
Anguilla is one of the few jurisdictions to have an Act or Ordinance dealing specifically with limited liability companies. Although the LLC Ordinance has its roots in the original Wyoming legislation, Anguillian LLCs have developed the concept much further.
An Anguillian LLC can readily be structured so that it possesses less than three of the four corporate characteristics recognized by the U.S. Internal Revenue Service, namely (a) continuity of life, (b) limited liability, (c) centralized management and (d) free transferability of interests. In such case the LLC will be treated as a partnership. Properly structured, therefore, an Anguillian LLC will provide its members with limited liability, but provide the advantages of income and losses passing through to the members.
The Anguillian LLC Ordinance has many features not found in the original Wyoming legislation, including a provision that its term can be perpetual or as otherwise provided for in the LLC agreement.