ANGUILLA - A TAX HAVEN
Why Anguilla?
Anguilla, the British Dependent Territory set in the Caribbean Sea, is known as an up-scale tourist destination, with several world class hotels and unsurpassed beaches, also as a PRIME offshore finance center.
One key part of that strategy to develop Anguilla into a well regulated offshore center is the recent enacting of a modern package of financial legislation, geared to the needs of overseas investors and clients.
Another element involves the implementation by late 1995 of a state of the art computerized system in the Anguilla Companies Registry. Remote access filing and registration of companies by both local and British Capital Group will be accomplished electronically in minutes.
The Companies Registry is scheduled to operate around the clock, 365 days a year.
GENERAL INFORMATION: Anguilla, the most northerly of the Caribbean Leeward Islands, has a landmass of 90 sq km and was originally inhabited by, and was an important home island to, the Arawak Indians, an indigenous Caribbean race. Numerous significant artefacts have recently been unearthed which establish the Fountain (a fresh water underground spring) and other Island sites as important archaeological finds which now draw substantial international interest. The British established control of Anguilla in the late 1600’s, prevailing in numerous skirmishes with other European powers throughout the colonial period, so that today Anguilla is a British Dependent Territory.
POPULATION: Anguilla supports a population estimated at 9,000. The Island is generally flat with occasional rainfall, but has the finest powder white sand beaches in the Caribbean. The official language is English; the primary industries are tourism (featuring numerous world class resorts and restaurants, catering to high net worth individuals from the United States, Europe and Latin America), financial services, boat building and fishing. The standard of living and the level of education are both quite high.
POLITICAL STRUCTURE: In 1969, Anguilla succeeded from Associated Statehood with St. Kitts and Nevis, opting for direct British rule, which was officially granted in 1982. Anguilla is a stable society and strong democracy, peacefully governed by an Executive Council of ministers appointed from the Legislative Council of elected members, presided over by a British appointed Governor. Britain maintains responsibility for defense and foreign affairs. Elections are held at least once in every five years, electoral representation is parliamentary (as opposed to presidential).
INFRASTRUCTURE AND ECONOMY: Anguilla is located approximately one and a half hours south east of Miami, Florida, or four and a half hours south east of New York City. There are flight connections from those and other United States cities, as well as from Europe and Latin America, through Puerto Rico, St. Maarten, Antigua, and Curacao.
LANGUAGE: The official and spoken language is English.
CURRENCY: Eastern Caribbean (EU) dollar.
EXCHANGE CONTROL: There are no Foreign Exchange controls, and the US dollar circulates freely throughout the economy. Bank accounts can be maintained in US dollars in either personal or corporate savings accounts, checking accounts, CD’s, or other investment instruments.
TYPE OF LAW: Anguilla’s legal system is based upon English Common Law, with local modifications. The judiciary is independent of the Executive and Legislative branches, and is fully independent of political influence. Anguilla has, since 1992 (and specifically in 1994), introduced and adopted numerous pieces of modern financial service legislation. These laws were drafted with the involvement of all elected legislators, with the advice of the private sector practitioners, and the consent of British Government representatives.
PRINCIPAL CORPORATE LEGISLATION: International Business Companies Ordinance
1994.
COMPANY INFORMATION:
TYPE OF COMPANY FOR INTERNATIONAL TRADE AND INVESTMENT: International Business Company (IBC).
PROCEDURE TO INCORPORATE: On line incorporation is available to approved sub-agents to provide instant incorporation. Alternatively, filing a basic two-page form (i.e. Form 8, The Articles of Incorporation) is the only requirement.
RESTRICTIONS ON TRADING: An IBC is restricted from conducting business with persons resident on Anguilla, conducting banking or trust business, conducting insurance or reinsurance business, or conducting the business of providing company management services. On Anguilla, an IBC may maintain bank accounts, retain professional advisors carrying on business within Anguilla, maintain corporate records, hold meetings and lease office space.
POWERS OF COMPANY: An International Business Company has the full capacity of, and all rights, powers, and privileges of, a natural person.
LANGUAGE OF LEGISLATION AND CORPORATE DOCUMENTS: The legislation and language of corporate documents is English.
REGISTERED OFFICE REQUIRED: Yes, must be maintained in Anguilla at the address of a licensed management company or law firm.
TIME TO INCORPORATE: 7-10 days.
NAME RESTRICTIONS: Any name that has already been incorporated or a name that is so similar as to cause confusion. Restricted names are ones that suggest the patronage of the Royal Family, the UK Government, a political party, a university, a professional association, or names that the Registrar may consider to be misleading or objectionable.
LANGUAGE OF NAME: On line incorporation allows for names in virtually any language or alphabet, including Chinese characters.
NAMES REQUIRING CONSENT OR A LICENSE: Any name implying a relationship with the banking or insurance or company management industries- e.g. bank, financial, trust and insurance.
SUFFIXES TO DENOTE LIMITED LIABILITY: The name of an IBC must end in one of the following: Ltd, Corp, Inc., SA, NV or GmbH.
DISCLOSURE OF BENEFICIAL OWNERSHIP TO AUTHORITIES: No.
AUTHORIZED AND ISSUED SHARE CAPITAL: The normal authorized share capital is US$ 50,000 divided in to 50,000 shares of US$ 1, this being the maximum capital for the minimum fees for incorporation and annual fees. The share capital can be expressed in any currency. The minimum issued capital is one share.
CLASSES OF SHARES PERMITTED: Par value shares, no par value shares and bearer shares.
BEARER SHARES PERMITTED: Yes.
TAXATION: Anguilla is a pure tax haven and has no direct taxation in the form of income tax, capital gains tax, gift tax or inheritance tax.
DOUBLE TAXATION AGREEMENTS: Anguilla is not party to any double tax treaties.
LICENSE FEES: Government annual fees are US$ 230.
FINANCIAL STATEMENTS REQUIRED: There is no requirement to file accounts with the authorities, but a company is required to keep financial records that reflect the financial position of the company.
DIRECTORS: The minimum number of directors is one. The directors may be natural persons or corporate bodies. They may be of any nationality and need not be resident in Anguilla.
COMPANY SECRETARY: Not required, but normally appointed.
SHAREHOLDERS: The minimum number of shareholders is one.
CORPORATE FEATURES
GENERAL
Type of Company: IBC
Political Stability: Excellent
Common or Civil Law: Common
Disclosure of Beneficial Owner: No
Migration of Domicile Permitted: Yes
Tax on Offshore Profits: No
Language of Name: Latin or other alphabet
CORPORATE REQUIREMENTS
Minimum Number of Shareholders: One
Minimum Number of Directors: One
Bearer Shares Allowed: Yes
Corporate Directors Permitted: Yes
Company Secretary Required: Yes
Standard Authorized Share Capital: US$ 50,000
LOCAL REQUIREMENTS
Registered Office/Agent: Yes
Company Secretary: Yes
Local Directors: No
Local Meetings: No
Government Register of Directors: No
Government Register of Shareholders: No
ANNUAL REQUIREMENTS
Annual Return: No
Submit Accounts: No
RECURRING GOVERNMENT COSTS
IBC's Capitalized at US$50,000 or less: US$ 250
Annual Register Surcharge: US$ 30
Trust Services: Using a trust to own the shares of an offshore company can result in very substantial tax and non-tax related advantages which will accrue both on death and during the lifetime of the trust settler. These advantages may include:
Saving Of Inheritance Tax: On death, the Inheritance tax which would normally be assessed on the value of shares would generally be eradicated.
Asset Protection: Assets placed into trust are generally beyond the reach of creditors who might arise as a result of financial difficulties, divorce proceedings, litigation, etc.
Avoidance Of Probate: A trust provides a means whereby assets can be smoothly passed on to the next generation without the disruption, delays substantial costs, loss of confidentiality associated with the probate procedure which necessarily follows when assets are bequeathed by will.
Continuity: Trusts provide a means whereby assets can continue to be administered in accordance with the wishes of the settlor after his death so the weak can be protected from others and the spend-thrift can be protected from himself.
Lifetime Tax Savings: During lifetime, substantial income and capital gains tax advantages may result from setting up the trust. Using the service of one of our licensed trust companies, we are pleased to act as trustee for a suitably drafted discretionary trust and the cost of this service would be from US$500 for setting up the trust deed and from US$500 per annum for the provision of trustee services.
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