What to consider before doing business in Anguilla?

These days, setting up an overseas company is no longer a new topic for investors, especially startups who are looking for new opportunities. Anguilla is considered as an ideal destination and attracts many businesses to set up in recent years. This article will help you understand why doing business in Anguilla is so appealing to international investors, as well as provide a thorough analysis before you decide to set up an offshore company in Anguilla.

Anguilla's location overview

Anguilla is elongated and 35 square miles wide and has a population of about 15,000. Anguilla is a small Caribbean island but inherits wonderful natural scenery. With 33 pristine white beaches and coconut trees, surrounded by clear blue waters and magnificent coral reefs, the tiny island of Anguilla is one of the most unique destinations in the world. Moreover, Anguilla is only 10 to 20 minutes away from the US, Canada and Europe.

However, what makes this island special from other islands in the same area is its exclusivity. In contrast to the neighboring islands that attract hundreds of millions of tourists each year, Anguilla stands out as a tranquil nature reserve just for those who want to enjoy nature. With its beautiful beaches, high-quality spas, and tranquil atmosphere, Anguilla annually attracts a large number of super-rich tourists from Wall Street as well as Hollywood. This could be your dream opportunity if you are looking forward to doing business in Anguilla or want to expand further into the luxury travel sector.

With beautiful beaches, Anguilla annually attracts a large number of super-rich tourists

Anguilla's rapidly growing economy

As a British Overseas Territory, entrepreneurs doing business in Anguilla enjoy political stability, a favorable corporate tax regime and a relaxed working environment. Although Anguilla is a small island compared to other islands, in the 1980s it was among the top regions with the highest growth index. Since the early 1990s, Anguilla has consistently ranked as one of the most important financial regions in the world. In 2019, Anguilla has achieved an admirable total GDP of US$ 307 million and a GDP per capita of more than US$ 20 thousand. The main figures in international trade in services can be mentioned as Transportation accounted for 2.1%, Tourism accounted for 30.5% and 67.4% was for other services. The top 5 countries trading with Anguilla in 2020 include the US, Chile, Guyana, South Korea and Uruguay.

Anguilla has just a few natural resources, and the natural terrain is not favorable, leading to the agriculture and processing of agricultural products not being able to develop as strongly as other places. As a result, Anguilla's economy relies heavily on the service industry, luxury tourism for the rich and super-rich, remittances from migrants and most especially offshore companies and banks. It is because offshore companies and banks account for a high proportion of the economy here that Anguilla leaders and officials always try to develop the offshore financial sector, which economists analyzed that although there is no really large capital, it is having a significant development momentum in the future.

Anguilla is famous for its offshore banks and companies

On the other hand, the strong growth of the tourism industry has significantly contributed to the promotion of related industries such as construction, services, restaurants, hotels and many more. This increase has contributed greatly to the economic growth of this place. It is predicted that in the coming year, Anguilla's tourism industry will recover quickly after the epidemic because major countries and territories such as the US and Europe have allowed to reopen flights, thereby making the average income per capita continue to grow as well as bringing this economy up further.

What are the advantages of doing business in Anguilla?

Anguilla is a UK Overseas Territory, so it becomes a hub for those who want to expand into the UK in particular or Europe in general. Moreover, it possesses a strong but flexible legal framework based on the legal system of English Common Law, with extremely favorable laws and policies for those who want to do business here. The most recent prominent support program is the Anguilla Youth Entrepreneurship Foundation, which, through the Ministry of Youth and Culture, has officially launched compliance with Global Entrepreneurship Week 2020. This program was founded in an effort to inspire young people from all over the world to discover their potential as self-starters and business innovators.

In addition to the extremely beneficial programs for businesses and investors mentioned above, here are more advantages that you will get when doing business in Anguilla.

1. A well-regulated jurisdiction for the preservation of wealth

Anguilla, British Caribbean, is an offshore jurisdiction that is extremely well known for managing companies, trusts and estate planning, funds, captive insurance and mutual funds for many years. With many famous consulting firms, diverse financial services and long experience, this place will provide the best protection for your or your company's assets.

2. One of the most attractive tax regimes in the world

This is an area with an extremely favorable tax regime for people doing business in Anguilla. There are no direct taxes, no income taxes, capital gains taxes, inheritance taxes or corporate taxes. The Anguilla government relies solely on customs duties to administer this near-zero tax jurisdiction. Furthermore, those applying for the estate/contribution residency options will benefit from these tax classifications.

3. Modern communication networks keep you connected

The pace of life in Anguilla may be a little slower than other places, but Anguilla's telecommunications network and infrastructure are modern and reliable. Many providers have provided access to fiber optic connections throughout the island so that it can have high-speed Internet, making it easy for you and your company to do business in Anguilla without any problems.

Modern communication networks in Anguilla can keep you connected with your clients

4. Anguilla Commercial Online Registration Network (ACORN)

ACORN is the only modern company registration system pioneered in Anguilla. The system was developed by the Anguilla Financial Services Department in late 1998, with technical support from the UK Registrar of Companies. This system allows instant online registration of the following companies:

• Anguilla Business Companies
• International Business Companies
• Hybrid Companies
• Non-Profit Associations
• Public Companies
• Limited Liability Companies; and
• Limited Partnership

Using the ACORN system, you can start doing business in Anguilla instantly from anywhere in the world 24/7, seven days a week.

Here are a few industries with great growth potential we encourage you to explore before doing business in Anguilla: Banking, Insurance, Fund Management, Financing and Leasing, Distribution and Service Center (purchasing goods from or providing services to affiliates), Shipping, Intellectual Property.

Through the above article, we hope to have given you the most comprehensive view of Anguilla. Thereby, if you have decided to do business in Anguilla, find out the direction for the company and create your own long-term business plan.