Financial Services

Antigua and Barbuda is a mature Caribbean jurisdiction for international financial services. Established in 1983, this nation has earned the regard of the more discriminating investor seeking secure financial services in an efficiently regulated environment. With a well developed tourism infrastructure, visitors arrive via air, super yachts, and mega cruisers to enjoy the island’s hospitality, and it is not surprising that some are equally interested in arranging global banking services. The opportunity to combine business with pleasure is as attractive as the enjoyment of the sun and cooling trade winds, and those seeking to shelter from the chill of volatile economies and international tensions welcome Antigua's stable business climate and democratic governing environment.

Strong Regulatory Infrastructure

In 1982, Antigua enacted its International Business Corporation Act (IBCA) to govern an international finance jurisdiction. The IBCA provides for the legal formation international business corporations and insurance companies, banking, trust, and estate allocation services, portfolio management, and corporate administration, all supervised by the Financial Services Regulatory Commission (FSRC).

In 2007, Parliament processed new legislation, including the following:-

• The International Trust Act (PDF 197k)
• International Foundation Act (PDF 213k)
• International Limited Liability Company Act (PDF 284k)
• Corporate Management and Trust Service Providers (PDF 192k)

These new legislative initiatives work to make Antigua and Barbuda a preeminent jurisdiction for wealth management services.

International Cooperation

The jurisdiction has aggressively kept pace with demands by international authorities for transparent financial services and continues to update its laws to prevent money laundering and the financing of terrorism, strengthen its regulatory and supervisory machinery for financial institutions, and improve its capacity for law enforcement of financial crimes. The government and the private sector enjoy a strong partnership and both agree that the heightened levels of regulatory control make Antigua and Barbuda better equipped to offer high quality financial services to the international market. Recent assessments by the Caribbean Financial Task Force, the World Bank, and the International Monetary Fund mission have made detailed examinations of the local infrastructure to supervise and monitor its financial service sector and have been satisfied with its compliance to meet international standards and to enhance international cooperation.

Business Center

The combination of well-regulated financial services, world class communications, an English-speaking, skilled workforce, and strong professional resources offers a positive environment for electronic and international business services. The jurisdiction provides ideal support for information technology services and Internet-driven business opportunities that demand more sophisticated financial services.

Modern services include:-

• International Banking (internet/electronic banking, telephone banking, wire transfers in major currencies) more info
  

  An International banking licence is granted to an IBC by the FSRC provided that the application meets the required standard. The annual licence fee for the banks is US$15,000. The minimum capital requirement is five million US dollars (US$5,000,000) or its equivalent in another major currency, of which US 1.5 million shall be deposited in a licensed financial institution in Anitgua and Barbuda. International bank are also required to maintain a physical presence in Antigua and Barbuda in line with the FSRC requirements, and are exempted from any exchange control or foreigh currency levy. They are also required to appoint an auditor, file un-audited quarterly returns and annual audited accounts. Information must also be sent to the FSRC, which conducts an annual onsite examination of these institutions.

• Corporate and Trust Administration more info
  

  Trusts administered by Antigua and Barbuda trust companies are not subject to any legislation imposing taxes on inheritance, profits, income, or on any capital assets, gain or appreciation on any assets or dividends, and interest paid out by an IBC as a trustee on behalf of a non-resident of Antigua and Barbuda, for a period of 20 years from the date of incorporation of the IBC.

  Although there is no requirement that a trust instrument be recorded, it may be recorded in the non-public records of the Director of International Business Corporations who will issue a Certificate of Recordation attached to the original of the trust instrument.

  There is also no restriction on accumulations by trusts and the rule of law known as the rule against perpetuities does not apply to any property vested in a trust corporation. The minimum capital requirement for a trust corporation is US$500,000. The IBC Act and domestic laws governing trusts, based on the British Common Law, which was adopted by Antigua as a colony and readopted after independence, still apply to all international trusts.

• Estate Planning
• International Tax Planning
• International Business Corporations more info
  

  Registry of IBC's at the FSRC provides for speedy formation at very copmetitive rates. The formation of IBC's can be carried out by a locally registered trust company, or by an accountant or attorney, usually within 24 hours. Full corporate and trust services are available to both prive and corporate investors.

  No minimum capital is specified for an IBC, and shares may hve a nominal or no par value. The transfer of the charter of an IBC to a foreign jurisdiction, vice versa is permissable under the city permitted. The board of directors of a corporation may consist of a single member. In the case of a trust and insurance corporations, and banking, at least one director must be a citizen and resident of Antigua and Barbuda.

  Every IBC must have a registered office, as well as a resident agent in Antigua. The resident agent is responsible for paying annual licence fees and for keeping the company's records.

  The annual licence fee for an IBC is US$300. Fees charged by trust companies or professionals for incorporation and annual maintenance vary. However, fees for the formation of an IBC without an international banking or insurance licence start at about US$725, with an annual maintenance fee of US$350. thus the total cost for an IBC formation (including the licence fee) is typically US$975, with an annual maintenance fee of US$600.

• Ship Registration more info

  In 1985, Antigua enacted the Merchant Shipping Act, which further expanded the facilities of its offshore centre. The designated port of registry in St John's, Antigua, is under the supervision of the Registrar of Ships, Department of Marine Services and Merchant Shipping. Registration can also be carried out in Germany by the Commissioner of Maritime Affairs, Department of Marine Services and Merchant Shipping, Patentbusch No. 4, 26125 Oldenburg, Germany.

  The procedures for ship registration or parallel (bareboat) registration are efficient and can be organised through several of the offshore operators. With the submission of required documentation, the Department of Marine Services provides quick response. The registration fees are competitive with other jurisdictions and are transparent, with no hidden costs. No age is set for the acceptance of ships for registration, but all ships over 499GRT must be in class. The Department of Marine Services does not duplicate safety inspections, but complements and controls the work of class societies. Unlike some other registers, Antigua has no nationality requirements for manning vessels. For more information please see the Antigua and Barbuda international shipping register website at http://www.antiguamarine.com

• Pension and Fund Management
• Payroll Services

These are powerful financial tools that enable business people to compete in an international and open market environment. The government has passed relevant legislation to govern e-commerce, and control abuse of electronic systems and to protect the safety of online activity.

Wealth Management

Antigua and Barbuda has become attractive to international investors seeking private banking services and wishing to balance their portfolios with strong fixed income returns, property investment, or permanent residency. The international banks are supportive to investors pursuing local real estate and tourism projects. Some leading international financial institutions offer Certificates of Deposit at significantly higher rates than those offered in other financial centers such as London, New York, and Switzerland. These Certificates are bank products in major currencies, with the principal deposit never at risk. Several major real estate developments are being undertaken in Antigua and Barbuda, and the response from international investors has been significant. Investors purchasing properties in Antigua and Barbuda qualify for permanent residency and can obtain real estate and tax planning advice from major local accounting firms.

International Standards

Antigua's International Financial Centre is committed to meeting requirements of modern business and well regarded in the surge of global demands for financial solutions. It is redefining the role of international banking relationships and complement global business opportunities that need financial solutions. The combination of well-regulated financial service providers and the ability to offer modern financial services in a stable and tax neutral environment makes Antigua and Barbuda, premier location for global business.