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Anguilla Business Company (BC): Overview.

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Anguilla Business Company (BC): Overview

Anguilla, a jurisdiction known for its business-friendly environment, offers a streamlined process for company incorporation and favourable regulatory frameworks. Its reliable offshore financial centre reputation attracts investors seeking efficient business setups and robust legal protections. With a commitment to transparency and flexibility, Anguilla provides a supportive environment for companies to expand their operations internationally.

This article highlights the requirements and procedures for establishing a company in Anguilla.

Key takeaways:

  • Establishing a new company in Anguilla can be completed within one day, facilitating swift business operations.
  • BC companies can have at least one director and shareholder.
  • Companies are subject to nominal licence fees and must maintain financial records and file annual returns, ensuring transparency and adherence to international standards.

Anguilla Business Company overview

Initially known as an Anguilla International Business Company (IBC) and governed by the IBC Act of 2014, it is a company registered in Anguilla that conducts business activities in jurisdictions outside the country.

In 2022, the Anguilla Business Companies Act was introduced, replacing the IBC Act, the Companies Act. Accordingly, the Anguilla IBC is now recognised as an Anguilla Business Company (BC).

Benefits of Anguilla Business Companies

  • Taxation: Anguilla is considered a neutral tax jurisdiction and does not impose direct taxation in the form of corporate income tax, capital tax, capital gains tax, gift tax, or inheritance tax, subject to its economic substance regimes.
  • Power of company: The company has the same rights, powers and privileges as a natural person.
  • No local director residency requirement: A BC does not require a local director and can be of any nationality.
  • No audit requirements: Unlike some jurisdictions, there is no mandatory audit requirement for companies in Anguilla.
  • Legal structure: The nation has an appealing legislative framework reflecting its independent judiciary rooted in English Common Law.

To establish an Anguilla BC, navigating and adhering to the specific regulatory and operational aspects governing these entities is essential. The following are crucial considerations:

Share capital and currency

Share capital is expressed in USD, with transactions allowed in any currency. The minimum paid-up capital is USD 1, while the usual authorised share capital is USD 50,000.

Trading restrictions

  • Restricted from conducting business with persons resident in Anguilla.

Requirements for setting up a business company

Directors

The minimum required number of directors is one, and it can be a corporate body or a natural person. Local directors are not needed, allowing for international ownership and management structures. Records of directors are not publicly accessible, providing privacy and confidentiality for individuals involved.

Shareholders

A minimum of one shareholder is required. Shareholder records are not publicly accessible, ensuring confidentiality and privacy for individuals involved in company ownership.

Company secretary

A company secretary is not required, but it is recommended to appoint one. There is no requirement for the company secretary to be local or have specific qualifications.

Registered agent

Every company must appoint a registered agent who serves as an intermediary to receive legal documents and notices from the Registrar on behalf of the company.

Name restrictions

When selecting a company name, avoid any name that has already been taken or one that closely resembles existing names to prevent confusion. Restricted names include those that imply an association with the Royal Family, the UK Government, political parties, universities, or professional associations, and those that the Registrar deems misleading or objectionable.

Names implying a relationship with banking, insurance, or company management industries, such as bank, financial, trust and insurance, require consent or a licence.

The name of a company must end in one of the following: Ltd, Corp, Inc, SA, NV or GmbH, to denote limited liability status.

Registered office required

A registered office is mandatory and must be maintained in Anguilla at the address of a licensed management company or law firm.

Incorporation process

After choosing a company name, appointing a director, shareholder and registered agent and securing a registered office, essential documents such as the company’s articles of incorporation must be submitted to the Registrar of Companies. Establishing a new company in Anguilla can be completed within one day.

Compliance requirements for an Anguilla business company

Licence fees

Companies authorised to issue 50,000 shares or fewer incur an annual license fee of USD 350, while those with more than 50,000 shares pay USD 500.

Financial statement and accounting record requirements

There is no requirement to file financial accounts with the authorities, but companies must keep financial records that reflect their financial position.

Companies must also keep accounting records to show and explain the companies’ transactions. If accounting records are kept outside of Anguilla, companies must maintain them at their registered office:

  • Accounts and returns are sufficient to determine the company’s financial position with reasonable accuracy on a biannual basis.
  • A written record of the location(s) outside Anguilla where the accounting records are stored.

Additionally, companies must retain reliable financial records and underlying documents for at least six years from the end of the business relationship, transactions or dissolution.

Filing annual returns

Companies are required to file an annual return with relevant authorities.

Disclosure of beneficial ownership to authorities

Beneficial ownership information is disclosed to authorities, ensuring transparency and compliance with regulatory requirements.

Economic substance (ES) report

Companies are required to submit an annual ES return, which can be filed electronically as specified by the Registrar. The deadline is the last day of the quarter, which marks the anniversary of the company’s incorporation.

Conclusion

Anguilla is an attractive destination for individuals and businesses seeking to establish a company in a favourable environment. With its straightforward incorporation process and taxation policies, Anguilla stands out as a jurisdiction for growth and expansion.

Set up an Anguilla Business Company with Acclime

Acclime offers expert support for navigating the intricacies of establishing a company in Anguilla. With our streamlined process and in-depth knowledge of Anguilla’s business environment, we ensure a seamless experience for entrepreneurs looking to utilise the jurisdiction’s favourable regulatory frameworks.