Coffshore banking in Antigua

Antigua and Barbuda is an island nation located on the eastern boundary of the Caribbean Sea with the Atlantic Ocean. It consists of two major islands – Antigua and Barbuda – as well as a number of smaller islets. Investment Banking and Financial Services comprise an important part of the economy. Major world banks with offices in Antigua include: Barclays, Royal Bank of Canada (RBC), and Scotia Bank among others. 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. Antigua and Barbuda is a dual island nation known for its beaches and is a favorite destination for yachtsmen. Tourist facilities are widely available, and English is the primary language. Banking facilities and ATMs are available throughout the island. Note that we also have a list of properties that are currently available in Antigua& Barbuda.

GOVERNMENT

Antigua and Barbuda became independent of the UK on November 1, 1981. The government system is a democracy based on the English model. There is a Governor General appointed by the Queen. The Prime Minister and Cabinet exercise executive power and there is both a Legislative Assembly with elected members and a Senate with appointed members. The current governing party has been in power since 1967, except for a five-year period following the 1971 general election.

There is universal suffrage with democratic elections being held at least every five years.

Antigua and Barbuda is a member of the British Commonwealth, the United Nations and other international institutions.

LEGAL SYSTEM

The legal system is based on English Common Law. Legislation governing offshore companies is contained in the International Business Corporations Act of 1982, with amendments.

Offshore Banking

Antigua offers the discriminating customer a favorable jurisdiction in which to do well regulated international banking business. There are three (3) classes of international banks. Class 1 is a general unrestricted banking licence. Capital requirements are determined by the regulator, the Financial Services Regulatory Commission ("FSRC" or "Commission"); however the statutory minimum is US$3,000,000; US$500,000 of which must be deposited with the FSRC or in a manner approved by the FSRC

OFFSHORE LEGISLATION

The nation of Antigua and Barbuda provides the traditional services of an Offshore Financial Center, including the formation of Antigua offshore companies, banks and the provision of financial services.

Incorporations in Antigua are governed by the International Business Corporations Act, passed in 1982, with recent amendments. The advantages of incorporating an offshore company in Antigua are:

There is a fifty year tax exemption. This exemption applies to most forms of income, dividends, interest and royalties paid by and to foreigners. There are no exchange controls and the unrestricted operation of bank accounts is permitted. An IBC benefits from the absence of capital gains and estate taxes in Antigua. An IBC is not subject to mandatory auditing. There is no minimum capital requirement and shares may have a nominal or no par value. Bearer shares may be issued. An IBC may increase or reduce its authorized capital by way of an amendment to its Articles of Incorporation. An IBC may have a sole shareholder. An IBC may have a sole director and directors need not be natural persons. There are no citizenship or residence requirements for directors, officers or shareholders. Meetings of directors and shareholders may be held outside Antigua. Shareholders may vote by proxy. There are no requirements to file any audited statements or corporate reports with the government. The company's records and its operating office may be located anywhere. There are inward and outward domiciliary provisions.

The Class

2 licence is a concept that bears striking resemblance to the concept of the captive bank. The holder of this licence can only conduct international banking business with a restricted list of customers, as approved by the FSRC. While capital requirements are set by the Commission, the minimum requirement is US$500,000, of which US$100,000 must be deposited with the Commission or kept in a manner approved by the Commission.

A Class 3 banking licence is a composite bank and trust licence, allowing the holder to conduct both general unrestricted banking and trust business in one operation, without the need for two separate licences. Capital requirements are the same for that of a Class 1 bank.