Antigua & Barbuda is a tiny island nation located in the eastern Caribbean Sea. The country is a part of the Leeward Islands in the West Indies and a member of the Common Wealth of Nations. Antigua has two main islands; Antigua and Barbuda, the capital, and the largest city is St. John’s in Antigua.
Antigua’s economy relies on tourism. Tourists from around the world are attracted to the serene beauty, pristine beaches, and tropical climate of the country. The other factor of the economy is its offshore financial sector. Due to the low tax regime and business-friendly environment, high-net-worth individuals prefer conducting business out of Antigua.
Types of business structures in Antigua and Barbuda
Antigua and Barbuda is a very business-friendly country where local and foreign investors are encouraged to conduct offshore business. Various business structures are available to investors, some of which are discussed here.
| S# | Type of business | Local name | Min. paid-up capital required |
| 1. | Sole Proprietorship | One-man Business | No paid-up capital required |
| 2. | Partnership | Joint Business | No paid-up capital required |
| 3. | Limited Liability Company | Limited Company | $1 |
| 4. | Corporation | Limited Liability Corporation | 1,000 |
| 5. | Cooperative | Co-op Society | $1,000 – $5,000 (depending on business activities) |
Sole proprietorship
This is a business owned and operated by one person who is solely responsible for all aspects of the business. Preferred by retailers, artisans, skilled people, freelancers, etc. as there is very little cost involved in setup and operation and very few regulations to adhere to.
Partnership
At least and as many as 20 individuals can form a partnership business to achieve a commercial interest. Partners may be contributing or sleeping partners; in each case the extent of liabilities differ from the other. In a general partnership all partners contribute investment as well as enjoy decision making status. Whereas in a limited partnership, one or more partners are limited to their contributions only and play no part in the decision making process.
Limited Liability Company
An LLC is a business structure that combines the limited liability of a corporation with the tax benefits of a partnership. Owners of an LLC are called members and are not personally liable for the company’s debts. An LLC is the most preferred structure for small and medium enterprises as it has room for growth as well as legal protection against debts and losses.
Corporation
A corporation is a separate legal entity from its owners and shareholders, and it provides limited liability protection to its owners. It is typically more complex and expensive to set up than other business structures. A corporation is very similar to a joint stock or public limited company as the owners have the ability to raise capital either by borrowing from banks or through public offerings in the shape of shares.
Cooperative
Generally, a cooperative company is formed by two or more companies to promote a common commercial interest. The owners are referred to as members, share profits and perform the decision making of the company.
The choice of business structure depends on several factors, including the size of the business, the number of owners, the level of liability protection required, and the tax implications.
Cost of registering and incorporating a company in Antigua & Barbuda
The cost of registering and incorporating a company in Antigua depends on the type of business structure chosen. Here is a breakdown of the fees and costs associated with registering and incorporating a company in Antigua:
Sole proprietorship
The cost of registering a sole proprietorship in Antigua is $100.
Partnership
The cost of registering a partnership in Antigua is $200.
Limited Liability Company
The cost of registering an LLC in Antigua is $350, which includes the registration fee, name reservation fee, and stamp duty.
Corporation
The cost of incorporating a corporation in Antigua is approximately $1,500, which includes the incorporation fee, name reservation fee, and stamp duty.
It is important to note that these fees and costs are subject to change and may vary depending on the specific requirements and circumstances of the business. Business owners may also incur additional costs for legal and professional fees, such as legal advice, accounting, and tax services.
In addition to the registration and incorporation fees, businesses in Antigua are also required to pay annual fees to maintain their legal status and operate in compliance with local laws and regulations.
Cost of doing business in Antigua & Barbuda
The cost of doing business in Antigua and Barbuda can vary depending on several factors, including the type of business, industry, location, and size of the company.
Here are some of the costs associated with doing business in Antigua and Barbuda:
Business registration fees
The cost of registering a business in Antigua and Barbuda ranges from $100 to $500
Taxes
Antigua & Barbuda has a value-added tax (VAT) of 15%, as well as corporate income tax, personal income tax, and customs duties. However, there are several tax incentives available for businesses, such as exemptions for new and expanding businesses.
Labor costs
The minimum wage in Antigua and Barbuda is $8.50 per hour. Employers are also required to contribute to the National Insurance Scheme (NIS) for their employees.
Rent and utilities
The cost of renting commercial space and utilities can vary depending on the location and size of the business.
Licenses and permits
Businesses may be required to obtain licenses and permits for various activities, such as operating a restaurant or selling alcohol.
Internet and telecommunications
The cost of internet and telecommunications services can vary depending on the provider and level of service.
Overall, the cost of doing business in Antigua and Barbuda is considered to be moderate, and the government has taken steps to create a business-friendly environment to attract investment and promote economic growth.
Benefits of registering a company in Antigua
There are several advantages to registering a company in Antigua.
Here are some of the key benefits.
Strategic location
Antigua is strategically located in the Caribbean and provides easy access to markets in the Americas, Europe, and Asia.
Business-friendly environment
Antigua has a business-friendly environment with a stable political and economic climate, making it an attractive destination for foreign investment.
Low tax rates
Antigua has a competitive tax regime, with a corporate income tax rate of 25% and no capital gains tax or inheritance tax. There are also several tax incentives available for new and expanding businesses.
Investment opportunities
The country has a diverse economy with investment opportunities in sectors such as tourism, financial services, and agriculture.
Skilled workforce
Antigua has a skilled and educated workforce, with a literacy rate of over 90%.
Ease of doing business
Antigua has implemented several measures to simplify the process of doing business, such as online business registration and a one-stop shop for permits and licenses.
Access to regional markets
Antigua is a member of the Caribbean Community (CARICOM) and the Organization of Eastern Caribbean States (OECS), providing access to a regional market of over 6 million people.
