RSSInternational Business Corporations Act of 1982
The prevailing offshore legislation provides for speedy formation of the IBC at very competitive charges. The formation can be carried out by a locally registered trust company or by an accountant or attorney.
Formation can usually be completed within 24 hours and full corporate and trust services are available to both private and corporate investors including:
1. Registration and maintenance of corporate charters for offshore companies
2. Reception, management, and disbursement of the assets of offshore companies
3. Provision and maintenance of a registered office
4. Maintenance of the company's records and statutory register
5. Preparation of all necessary corporate returns and reports to the Director
6. Provision of directors and officers on request
7. Incorporation and management of offshore banks and captive insurance companies
8. A full range of traditional trust services
Some of the benefits provided to offshore companies formed under the IBC Act include the full exemption of all direct taxes in respect of any international trading, investment or commercial activity including withholding taxes and stamp duties. For banking, there is a 3% tax on gross income (i.e. interest income and fees derived from the operations and investments of the banking business minus interest expense). No minimum capital is specified for an IBC and shares may have a nominal or no par value. The transfer of the charter of an IBC to a foreign jurisdiction, or vice versa, is explicitly permitted. The board of directors of a corporation may consist of a single member. In the case of banking, trust and insurance corporations, at least one director must be a citizen and resident of Antigua and Barbuda.
Confidentiality provisions
The IBC Act provides criminal penalties for any disclosure of the business affairs of customers regarding banking or trust matters. The only exception for the disclosure of information relates to sound evidence regarding an alleged criminal offence that is triable in Antigua (or which would have been triable, if it has been committed in Antigua).
There are specific advantages for Canadian entities to form an IBC in Antigua that generates an active business income, because dividends paid out of income earned in Antigua are considered to be paid out of exempt surplus. Antigua is one of the countries listed in the Canadian Regulation 5907 (ii) which allows this arrangement. There are no tax treaties with European countries, except in the case of the UK and this is being updated through negotiations.
Incorporation procedures
Every IBC must have a registered office and a resident agent in Antigua. This function is regularly performed by the trust company or by the professional who performed the incorporation process. The resident agent is responsible for paying the annual government fees and for keeping the company in good standing. The annual government license fee for an IBC is US$300; for an IBC licensed to carry on international banking it is US$15,000 and for an IBC licensed to carry on an international insurance business it is US$10,000.
Fees charged by trust companies or professionals for incorporation and annual maintenance will vary, but fees for the formation of an IBC without an international banking or insurance license start at about US$725, with an annual maintenance fee of US$350. Thus, the total cost for an IBC formation (including the government license fee) is typically US$975, with an annual maintenance fee of US$600. If the applicant for an IBC wishes to have a registered agent serve as its corporate director, an additional fee will be charged, between US$250 and US$1,000 for each director.
Incorporation and maintenance fees for an IBC with an international banking or insurance license are higher and may be related to the level of required management services. Fees for trust management services are also dependent on the nature and value of assets and the required level of service.
Source: www.antigua-barbuda.com
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