Anguilla competes for the claim of best offshore LLC jurisdiction.
It is a politically stable and reasonably well-off British Overseas Territory.
Anguilla takes compliance seriously, unlike so many other offshore jurisdictions. This has given it a relatively good international reputation.
Incorporating an Offshore Company in Anguilla
In the last two or so years, Anguilla has been a growing offshore financial incorporation center. One reason for this has been the increased compliance requirements and higher costs of its famous neighbor and incorporating giant, the British Virgin Islands.
Most companies registered in Anguilla are either international business companies (IBCs) or LLCs.
Anguilla is an almost entirely tax-free jurisdiction; there are no taxes on corporations. This sets it apart from many other tax havens that separate their offshore financial sectors—which are often not taxed—while charging tax on local companies, which is a highly controversial practice.
Anguilla provides an almost-perfect blend of low taxes, ease of operation, and privacy of IBCs together with the reputability of being a British Overseas Territory. Though, Anguilla is still a far cry from the likes of Gibraltar and Malta in terms of reputation.
IBCs in Anguilla—as in nearly every other IBC jurisdiction—are not subject to any local tax, require only one director and shareholder, and need not make any annual filings or audits. A financial statement needs to be prepared, and books must be kept. There are no public records of the directors or shareholders of companies, but a public record of company names exists, which is called ACORN.
Fees for forming and maintaining an Anguilla company are generally low. Due to the healthy competition among operators in the market, the price you pay for an Anguilla company is often in range with the costs for more popular but less reputable jurisdictions like Seychelles and Belize.
Based on the Wyoming LLC, the Anguilla Limited Liability Company Act competes for the claim of best offshore LLC jurisdiction.
An Anguilla LLC can be perpetual and need only one member. There is no corporate tax levied on Anguilla LLCs.
Banking in Anguilla
Anguilla’s banking sector leaves a lot to be desired.
Like many Caribbean banks, Anguillan banks offer the bare minimum services at rather high prices. It’s generally easy to open accounts, though.
Nearly all Anguillan companies choose to bank elsewhere. Since Anguilla is a more reputable jurisdiction than other IBC jurisdictions, it may facilitate opening bank accounts in other jurisdictions.
The most popular offshore bank in Anguilla is probably the National Bank of Anguilla PBT.
Living in Anguilla
That said, there are significant tax advantages to living in Anguilla—if you can get a residence permit, which is no easy task.
There is no income tax (save for a 5% social insurance contribution and a 3% stabilization tax, both paid by the employer), no capital gains tax, no wealth tax, no sales tax, and no inheritance tax. There’s a property tax of 0.75% and a few other very small taxes. All in all, Anguilla is almost completely tax neutral.
To get a Permit of Permanent Residence, you need to first have a work permit, have exceptional professional skills, or invest US$2.5 million in the government.
Foreigners are only given work permits after job openings are announced and no local can be found to fill the position. Starting your own business in Anguilla can be a way to get around this, but there are strict requirements.
Anguilla is a growing tax haven. Many seeking to incorporate within the UK in one of the British Overseas Territories are finding Anguilla an increasingly attractive option. The fully electronic system for incorporation makes it possibly the fastest company registrar in the world.
Editor’s Note: In addition to Anguilla, there are other attractive jurisdictions that are cause for optimism. International Man is all about making the most of your personal freedom and financial opportunity around the world. Be sure to get the free IM Communiqué to keep up with the latest on the best offshore company options and other international diversification strategies.
Some of the information in the article below is based on the author’s personal experiences and has not been independently verified. As always, do your own due diligence.
Streber works as a consultant and director for a wide range of companies and has broad experience in offshore banking, offshore incorporation (formation and maintenance of offshore companies), taxation, privacy, ecommerce, merchant accounts, online payments, and all other things the privacy-minded entrepreneur might find interesting. You can read Streber’s blog on offshore incorporation and offshore banking.