Offshore Business in Antigua and Barbuda
Since its independence
in 1981, the twin-island state of Antigua and Barbuda in the Caribbean
has continued to practice a tradition of English Common Law. Located
less than 300 nautical miles Southeast of Puerto Rico, in the Leeward
Islands. Its legal procedures are structured in accordance with strong
democratic principles of good governance, patterned after the British
parliamentary system. In 1982, legislation was enacted under the
International Business Corporations Act, with subsequent amendments in
1984 and 1985, to make Antigua and Barbuda a choice jurisdiction for
offshore banking. Operations under this Act are controlled by the
Ministry of Finance in Antigua.
While Antigua and Barbuda is probably best known as an up-market
destination for more discriminating tourists, its natural and developed
assets have also allowed it to emerge as an attractive offshore business
centre. The country is in a convenient time zone, sharing the same time
as New York, Toronto, Central and part of South America, and falling
five hours behind the UK and Europe in the summer and four hours in the
winter which allows international business to be transacted easily
within an appropriate time frame. Antigua's international airport is a
major gateway for the Caribbean, serving British Airways, US Air, Virgin
Atlantic, American Airlines, Air Canada, BWIA and LIAT, with direct
flights from New York, Miami, Toronto and London. Its international
telecommunications are excellent, with direct access into the global
stream of financial and business data. Electronic funds transfer is
readily accomplished, providing same day value, and securities can be
placed and executed within 24 hours.
There is a prosperous English-speaking community, with a resident
population of 80,000. Its people are involved primarily in business
related to the tourism industry and in commerce. The country enjoys the
highest per-capita income in the Eastern Caribbean. First-rate
professional services are widely available, including banking, law,
accounting, and management resources.
International commercial banking has been conducted on Antigua for many
years. Offshore banking is more recent, having started in 1983. Since
that time the industry has grown rapidly. Working in co-operation with
the private sector, the Government has improved Antigua's offshore
company and banking environment through the introduction of new foreign
residency, trust, and partnership legislation.
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 negotiation.
