Anguilla is a small country located on an island in the Caribbean Sea. The entire country is approximately 16 miles in length and 3 miles in width, with a population of approximately 15000 people. The country is famous for its pristine beaches, clear blue waters, and luxurious resorts.
Anguilla has a rich history and evidence has shown traces of human habitation dating back over 4000 years. In the 17th century, this predominantly African nation was colonized by the British Empire, and to date remains a self-governing British Territory.
Anguilla’s most affluent industry is tourism which accounts for more than 70% of the total revenue of the country. Tourists visit Anguilla for its untouched beaches, warm hospitality, and vibrant culture & cuisine.
Types of business structures in Anguilla
Anguilla has a number of options to choose from in terms of company formation. Depending on the nature, size, and requirements of the trade, investors can opt for one that best fits their needs.
| S# | Type of business structure | Local name | Min. required paid-up capital |
| 1. | Sole Proprietorship | No paid-up capital required | |
| 2. | Partnerships | No paid-up capital required | |
| 3. | Limited Liability Company (LLC) | No paid-up capital required | |
| 4. | Corporation | $1,900 | |
| 5. | Trust | No paid-up capital required |
Sole proprietorship
A sole proprietorship business is best suited to individuals with little to no investment but are qualified in personal capacity. This format is very straightforward to establish and run due to its simplicity and ease of operations.
Partnerships
At least two or more (maximum 20) people can collectively form a company as a partnership. All partners contribute capital in the business (usually) and are responsible for debts and losses in a personal capacity.
A partnership is further divided into General Partnership where the partners share the profits and losses of the business and are personally liable for the business’s debts. And Limited Partnership, where only those partners with general liability are responsible in a personal capacity for the debts, while the limited partners are responsible only to the extent of their share in the business.
Limited liability company (LLC)
An LLC offers a legal cover to the owners as they are not personally responsible for any debts, liabilities, and losses incurred in the course of doing business, in a personal capacity. All liabilities are compensated by the company by selling assets and shares, and nothing beyond.
An LLC is recognized as a legal person in the eyes of law.
Corporation
A corporation is very similar to a public limited company to the extent that the owners can raise capital by drawing in investors to the board of directors instead of public through its share offerings.
Trust
In a trust a person or a board of trustees holds and manages assets on behalf of the beneficiaries. Trusts are often used for estate planning purposes or to protect assets.
Note that the trustees do not (usually) have a share in the profits gained from the arrangement, but do draw a hefty salary in most cases.
It is important to note that the choice of business structure in Anguilla will depend on the business owner’s individual circumstances, including the size and nature of the business, liability concerns, and tax implications. It is recommended to seek professional advice before choosing a business structure.
Cost of registration and incorporation in Anguilla
The registration costs involved in the registration and incorporation process vary depending on the type of company, and the services required.
Government fees
The government fees for incorporating a company in Anguilla are as follows:
- Company registration fee: $250
- Registration of each director or shareholder: $50
- Certificate of incorporation: $50
- Business name reservation: $25
Registered agent and office fees
Companies incorporated in Anguilla are required to have a registered agent and registered office. The fees for these services can vary depending on the service provider.
- Registered agent fee: $200-$500 per year
- Registered office fee: $500-$1,000 per year
Legal and accounting fees
Companies may need to seek legal and accounting services to assist with the registration and incorporation process. These fees can vary depending on the level of services required.
- Legal fees: $1,000-$5,000
- Accounting fees: $500-$2,500
Cost of doing business in Anguilla
Costs that are incurred during the regular operations of a company are referred to as operational expenses or OPEX.
Here are some OPEX items that companies are most likely to incur:
Taxes
Anguilla has a low tax regime, with no personal income tax, no corporate income tax, and no capital gains tax. However, there are other taxes such as import duties, customs fees, and stamp duties that may apply.
Labor costs
The cost of labor in Anguilla can vary depending on the industry and the level of skills required. The minimum wage in Anguilla is currently $3 per hour.
Rent and utilities
The cost of rent and utilities can vary depending on the location and the size of the business. Commercial rents in Anguilla can range from $370 to $1,900 per month.
Licensing and permits
Businesses in Anguilla may require licenses and permits to operate legally. The cost of these licenses and permits can vary depending on the type of business and the level of regulatory requirements.
Professional services
Businesses may need to hire professional services such as legal, accounting, and consulting services to operate efficiently. The cost of these services can vary depending on the level of services required.
Technology and communication
Businesses in Anguilla may require technology and communication services such as the internet, phone, and software. The cost of these services can vary depending on the provider and the level of services required.
Business environment in Anguilla
Anguilla is a small island nation offering a favorable business environment. Here are some of the key features of the business environment in Anguilla:
Low taxes
Anguilla has a low tax regime, with no personal income tax, no corporate income tax, and no capital gains tax. This makes it an attractive destination for businesses and investors.
Simple incorporation process
Incorporating a company in Anguilla is a straightforward process that can be completed quickly and efficiently. The government fees for incorporation are also relatively low.
Stable political environment
Anguilla has a stable political environment, with a democratic government and a stable legal system. This provides a level of certainty and predictability for businesses operating in the country.
Skilled workforce
Anguilla has a skilled and educated workforce, with a literacy rate of over 95%. The country also has a high level of English proficiency, which makes it an attractive destination for businesses that operate in English-speaking markets.
Proximity to major markets
Anguilla is located in the Eastern Caribbean, which provides easy access to major markets in North America and Europe. The country also has a modern and efficient airport and seaport infrastructure.
Supportive business community
Anguilla has a supportive business community, with organizations such as the Anguilla Chamber of Commerce and Industry that provide support and resources to businesses.
It is important to note that while Anguilla offers a favorable business environment, it is a small island nation with limited resources and infrastructure. Businesses operating in Anguilla may face challenges such as limited access to financing and skilled labor.
