Advantages of Anguilla
•UK Overseas Territory
•Well-regulated financial services industry
•Common law legal system based on English law
•Well developed professional infrastructure
•Same day company incorporation service
•World standard telecommunications system
•Easy air access to North America and Europe
•Neutral tax jurisdiction
•No foreign exchange restrictions
•Multi-year work permits available for professionals within the financial services industry
Status
Anguilla is one of Britain's Overseas Territories in the Caribbean and as such it enjoys a high degree of political stability. All political parties are strongly committed to the growth of Anguilla as a quality financial services centre.
Although the country is essentially self governing, its legislature is the democratically elected House of Assembly. The Constitution gives the British appointed Governor certain fundamental reserve powers. All legislation must be assented to by the Governor as H.M. The Queen's representative.
Economic
The significant growth in Government revenues earned from the financial services sector over the last few years is a testament to the success of the policies to date. Anguilla is well positioned as a major player in the international arena.
Legal
Anguilla is a common law jurisdiction. Its judicial system is administered by the Eastern Caribbean Supreme Court the appeal process culminates with the Privy Council. The Court system is serviced by a number of firms of fully qualified and experienced lawyers.
Infrastructure
The professional infrastructure is well developed, with major accounting firms represented on the island. The telecommunications system is of a world standard providing direct access worldwide.
Taxation
Unlike many financial services centres, Anguilla is truly a neutral tax jurisdiction. There are no income, capital gains, estate, profit or other forms of direct taxation on either individuals or corporations, whether resident in Anguilla or not. This makes Anguilla a very attractive location for financial services professionals to base themselves. The Government recognises the desirability of expanding Anguilla's professional infrastructure and has very recently established a new programme allowing for multi-year work permits of up to four years duration and relaxed residency rules.
Exchange Control
There are no exchange controls in Anguilla. Although the official currency is the Eastern Caribbean Dollar the United States Dollar is commonly used.
Corporate Structures
Anguilla has three types of companies:
•The Ordinary Company
•The International Business Company
•The Limited Liability Company
Companies must be incorporated through a local agent all of whom, are licensed under the new Company Management Ordinance and regulated by the Inspector of Company Managers. The Government and private sector are working closely together to establish best practice guidelines for company managers. These will be designed to ensure that through the application of due diligence procedures and the adoption of high standards of practice, Anguilla attracts the best business and that its reputation is maintained.
The relevant IBC, LLC, Limited Partnership and Trust Ordinances all provide a statutory exemption from all forms of corporate, income withholding or other like taxes in respect of international Anguilla Companies business.
Companies are usually formed instantly using the ACORN system.
Anguillian Companies
The Ordinary Company
The ordinary company, which can be used both within Anguilla and as an offshore vehicle, is governed by the new Companies Ordinance. The Ordinance contains many attractive features:
•Companies may be incorporated by one incorporator and have one director.
•Companies may be limited by shares, by guarantee or by both shares and guarantee.
•The Ordinance abolishes the doctrine of ultra vires.
•Companies may acquire, purchase or own their own shares.
•Filing formalities have been streamlined.
•Companies may continue in or out of Anguilla.
•A special class of Specific Private Companies that are exempted from some record keeping and accounting requirements
The International Business Company
The International Business Company is based on the traditional model and provides for the easy incorporation and subsequent administration of a flexible and cost effective corporation.
Companies incorporated in any other jurisdiction may be continued in Anguilla as an IBC. An Anguilla IBC can, where the laws of another jurisdiction permit, redomicile to such jurisdiction.
The Limited Liability Company
Anguilla is one of the few jurisdictions to have an Act or Ordinance dealing specifically with limited liability companies. Although the LLC Ordinance has its roots in the original Wyoming legislation, Anguillian LLCs have developed the concept much further.
An Anguillian LLC can readily be structured so that it possesses less than three of the four corporate characteristics recognized by the U.S. Internal Revenue Service, namely (a) continuity of life, (b) limited liability, (c) centralized management and (d) free transferability of interests. In such case the LLC will be treated as a partnership. Properly structured, therefore, an Anguillian LLC will provide its members with limited liability, but provide the advantages of income and losses passing through to the members.
The Anguillian LLC Ordinance has many features not found in the original Wyoming legislation, including a provision that its term can be perpetual or as otherwise provided for in the LLC agreement.
Trusts
The new Trusts Act is the culmination of an exhaustive study of the trusts legislation of many other jurisdictions. The decision was taken to repeal the existing trusts legislation and replace it with a completely new Ordinance, rather than attempt to amend it.
The Trusts Ordinance, which has its roots in English trust law, provides a framework so flexible that the only limitation to its use is the imagination of the trust practitioner. Specifically, the Ordinance permits commercial or charitable purpose trusts, unit trusts, spendthrift trusts, asset protection trusts and what are termed variant trusts. The provision for variant trusts permits a settlor to create a trust (in whatever form and by whatever name) of a type recognized by the law or rules of his religion or nationality or which is customarily used by his community.
The Ordinance provides for a protector of the trust (who may be the trustee). The protector may be provided with the power to remove the trustee and to appoint new or additional trustees.
The Rule Against Perpetuities has been abolished and accumulation of income throughout the full term of a trust is possible.
The Fraudulent Dispositions Ordinance provides that a fraudulent disposition is voidable by a creditor provided that the settlor was insolvent at the time of the disposition or became so as a result thereof and provided that the creditor commences his action within three years of the date that the assets were settled into trust. The burden of proving that the settlor was or became insolvent as a result of the transfer is on the creditor.
In relation to asset (or creditor) protection trusts, therefore, Anguilla has deliberately taken a more conservative approach than some jurisdictions.
Where a trust is created under the laws of Anguilla, the Court shall not vary it, set it aside or recognize the validity of any claim against the trust property pursuant to the law of another jurisdiction or the Order of another Court in respect of:
•marriage or its termination;
•succession rights;
•the claims of creditors in an insolvency;
•the imposition of any foreign tax or duty.
Other characteristics of an Anguilla trust include choice of governing law and flight provisions.
Partnerships & Limited Partnerships
The Partnership Ordinance 1994 sets out:
•The definition of partnership
•The rules for determining the existence of a partnership
•The power of partners to bind the firm
•The nature of partnership property
•The interests and duties of partners
•The types of dissolution
•The rights of third parties against apparent members of the firm
•The rights and duties of partners on dissolution
•The distribution rules on final settlement of accounts
•Confidentiality
The Limited Partnership Ordinance 1994 sets out:
•The essential elements of a limited partnership
•Registration and record keeping
•Returns of Contributions
•Transactions by partners with the limited partnership
•Dissolution
•Proceedings
•Tax Exemptions
The Limited Partnership Ordinance provides an attractive investment vehicle, particularly for the raising of venture capital, permitting the limited partners to be insulated from liability. Full details can be found under the Financial Services Legislation Menu.
Finance & Banking
The Government of Anguilla has positioned the Territory as a well regulated financial services centre attracting only quality business. There are no "brass plate" banks and none will be accepted. Generally, only banks which are subsidiaries or branches of banks with an established track record which are subject to the effective consolidated supervision of their home authority will be licensed as offshore banks in Anguilla.
Banking in Anguilla
Banking Services:
•Barclays Bank plc
•Caribbean Commercial Bank (Anguilla) Limited
•National Bank of Anguilla Ltd
•Scotiabank Anguilla Ltd
Regulated & Secure
Today, no financial services jurisdiction can hope to succeed unless it is well regulated. Anguilla is no exception.
The financial services sector in Anguilla is the responsibility of the Governor, although day to day regulation is delegated to the Department of Financial Services. In carrying out its functions and in considering applications by organisations wishing to establish businesses within the sector, the Department aims to adopt a firm but flexible regulatory approach.
It is of paramount concern to the Government that Anguilla's reputation is not tainted by the use of the jurisdiction for money laundering or other illegal purposes. For this reason, all licensed institutions are expected to carry out proper due diligence and "know your customer" checks so that they are satisfied as to the identity of their clients and the legitimate origin of their clients' funds.
Although commercial confidentiality is ensured by legislation, the authorities in Anguilla will co-operate fully with law enforcement agencies and regulators in other jurisdictions in the case of illegality. In common with other reputable jurisdictions, the Department of Financial Services is, subject to safeguards to protect legitimate business, able to share regulatory information with overseas regulatory authorities.
Anguilla already has a well established professional infrastructure. The Government recognizes that, as a relatively new jurisdiction, an expansion of the sector would benefit the economy. Applications from suitable professionals and organisations within the industry are, therefore, welcome. Any organisation wishing to establish within the sector will be required to demonstrate that it is prepared to establish a real business on-island and a multi-year work permit program has been introduced to facilitate this. Alternatively, in the case of a licensed institution, an administered or managed basis for the issue of a license will be considered. This would entail the full management and administration of the licensee's business by an equivalent licensed institution on island.
