Company Registration in Anguilla

Overview of Company Registration Anguilla

Anguilla is a British overseas territory situated on the eastern Caribbean Sea. It is bordered by the Leeward and Saint Martin islands (north), Saint Kitts (northwest), Puerto Rico and the Virgin Islands (east with its capital as the Valley(which is the well-known and administrative centre of the island). The national language is English with the majority of the population of African descent. The national currency is the Eastern Caribbean dollar (XCD). The main economic activities in Anguilla are tourism and financial services; agriculture plays a vital role as well.

Anguilla operates a parliamentary dependent government under constitutional monarchy rule. It is a self-governing overseas territory of the UK. The Premier is the head of the government. The Anguilla Business Companies Act, 2022 (ABC Act) is the new companies’ legislation that repeals and replaces the International Business Companies Act and the Companies Act, establishing a comprehensive legal structure regulating the incorporation and operation of a larger range of companies in Anguilla.

Benefits of Company Registration

The benefits of company registration in Anguilla are enlisted below

Simple Setup

Anguilla is one of the fastest and easiest countries for incorporating a company due to the ACORN incorporation system, which facilities company registration at the earliest. By working with qualified professionals, the entire process can be completed seamlessly.

Zero Tax

One of the reasons for setting up offshore companies is the absence of any tax. The territory offers a very attractive tax regime which can benefit the entrepreneur and his company. There is a zero rate of tax on company profits, share transfers, capital gains and even estate transfers. These are all available to registered companies; irrespective of the entrepreneur being a resident, this allows the entrepreneur to sustain his current status and still gain benefits for the company.

Investor Privacy

A company registered in Anguilla provides privacy to its investors because despite Anguilla’s commercial registry having a list of shareholders and directors, this information is not publicly available. Those with access to the register are legally bound for not revealing any information they access, so the shareholders can be sure of their privacy.

Trademark Protection

As a British Overseas Territory, Anguilla’s legal system is based on the UK. Anguilla is far from the ‘wild west’ when concerning regulatory protections. Trademarks, copyrights, and patents are all protected by Anguilla's robust legal framework. Due to the links with the UK, British trademarks even extend to Anguilla. Incorporating a company in Anguilla allows the entrepreneur to gain substantial tax benefits without risking their intellectual property.

Foreign Exchange

The East Caribbean Dollar (XCD) is pegged to the United States Dollar (USD), eliminating the worries of volatility in the country’s currency. Many smaller countries impose restrictions on the currency movement in the country which is not the case in Anguilla. Businesses can move as much currency and take as much out as needed. This allows the entrepreneur to hold their assets in whatever form is most suitable for the company.

Types of Company Structures that can be registered in Anguilla

The types of Company Structures that can be registered in Anguilla are

Anguilla Business Company: the Ordinary Company

It is commonly known as ABC and can be used within the Country and as an offshore Vehicle. The governing law is the new Companies Ordinance. The features are that It can be incorporated with one incorporator and also have one director, have an option of being limited by shares or Guarantee or both and function inside or outside Anguilla. An exemption has been provided to certain specific Private Companies in respect of recordkeeping and accounting requirements.

The International Business Company

This type is considered the conventional type of Company and can be easily incorporated compared to the first one. It is also flexible and cost-effective in nature.

The Limited Liability Company

The Limited Liability Company has certain characteristics which can be treated as a partnership having Corporate like perpetual nature, limited liability, f ree transferability of Interests and Centralized Management. The striking feature of such LLCs is that they offer limited liability to their members, and income and loss benefits can pass through them. It is a sort of partnership carried out by way of an LLC agreement.

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Eligibility Criteria for Company Registration in Anguilla

The eligibility Criteria for Company Registration in Anguilla is discussed below

• Minimum 1 shareholder
• Minimum 1 director
• Beneficiary owners
• Minimum Capital of USD 50,000
• Registered Office
• Registered Agent
• State capital and shares Standard state capital of IBC is USD 50,000 with USD 1 par value, which must be fully paid before incorporation (through the local agent). There is no obligation to produce evidence of the payment to the Registry.

Necessary papers Required for Company Registration in Anguilla

The Documents required for Company Registration in Anguilla are enlisted below

• Registration Certificate
• Register Of Shareholders And Directors
• Document Certifying The Appointment Of The Director
• Passport Of The Owner For Travelling Abroad
• Memorandum And Articles Of Association
• Resolution On The Issue Of Shares, Location Of Financial Statements, And Registers
• Share Certificate
• Document Confirming The Registered Address
• Apostille
• Stamp

Procedure for Company Registration in Anguilla

Following is the procedure for Company Registration in Anguilla

Define the business goals and scope of operations

The first step for company registration in Anguilla is defining the goals and scope of operations that shall be conducted through the company.

Choose and check a business name for a future corporate body

The next step is to choose a name for the business, check the availability of the name and get it reserved at the earliest.

Collect data from its founders, beneficiaries, and future managers

The applicant must collect the relevant data from its founders, beneficiaries, and future managers for the next step of company registration in Anguilla.

Arrange a registered office

The applicant must arrange for a registered office to conduct the company's business operations.

Draft and formalize the statutory and other constituent Documents

The next step in the company registration in Anguilla is drafting the relevant Documents for filling an application for registration.

File the application and submit the Documents

After drafting the required Documents, the applicant must file the application and submit the Documents to the competent authority.

Open a Corporate Bank Account

The applicant should open a corporate bank account for the newly incorporated company.

Obtain the Requisite Business Licences

The applicant must also obtain the requisite business licences depending upon the company's business activities.

Mandatory Requirements

• According to the Act, the AOA can be filed with the registrar only if the individual is a major, is of sound mind, and the status of the individual is solvent.
• With regards to Company Setup, a minimum number of one director or manager is required who need not compulsorily be locals.
• The meetings of the Directors or of members can be located anywhere, and the appointment of the Company Secretary for the Company is not mandatory.
• Although preparing accounts for the Company is compulsory, they are not publicly accessible.
• Incorporation is immediately affected under ACORN; therefore, a copy of the Company's Certificate of incorporation is provided instantly.
• The hard copies of all certificates are generated and provided through the local licensed Company manager.

Taxation in Anguilla

Anguilla has an indirect tax jurisdiction, i.e., it provides the economic, legal and infrastructure system with indispensable taxation and exchange control. It is a neutral tax jurisdiction place that forms no direct taxation on income, capital gains, estate, profit, etc. In other words, it can be described as a tax exempted setup.