Pam Webster examines Anguilla’s unique position within the international finance community and highlights why it is well placed to join other British Overseas Territories as a premier destination for financial services.
Anguilla is a British Overseas Territory situated in the Northern Leeward Islands. It is politically stable with a common law legal system based on English law and is a truly zero tax jurisdiction, with a highly skilled professional financial services infrastructure. The official currency is the Eastern Caribbean dollar which is fixed to the US dollar. There are no foreign exchange restrictions.
The Island is a respected member of the international financial services community and has had a strong reputation as a solid financial centre since the early 1990s. Over the last 20 years Anguilla has grown steadily to the stage now where it has become a significant professional provider of management services for international businesses. Anguilla’s holistic approach includes flexible business and labour laws, comprehensive bank and financial regulations and various incentives to mitigate taxation.
Anguilla is well worth considering for those individuals or organisations who are interested in tax planning and asset protection.
The Government has signed 17 TIEAs thus far and is committed to further enhancing the Island’s reputation as a world-class financial services centre.
Company Law and Business Regulations
The Ordinary Company
An Ordinary Company, which can be used both within Anguilla and as an offshore vehicle has many attractive features:
The International Business Company
The IBC is based on the traditional model and provides for the easy incorporation and subsequent administration of a flexible and cost effective corporation.
The Limited Liability Company
Anguilla is one of the few jurisdictions to have an Act or Ordinance dealing specifically with limited liability companies based on the well recognised Delaware model. An Anguillian LLC will provide its members with limited liability, but provide the advantages of income and losses passing through to the members.
Anguilla provides for the licensing of two types of trust company. The first is a general trust company, allowing the licensee to offer trustee services to the public in general. This licence allows the licensee to extend the licence to wholly owned subsidiaries engaged in trust activities. The second type is a restricted trust company, which limits the licensee to administering a limited number of trusts. The underlying legislation seeks to modernise trust law with respect to security, confidentiality and flexibility, whilst preserving the best features of common law trust interpretation.
Offshore and Captive Insurance
Anguilla is now the world’s fifth largest captive insurance market (by numbers of Captives) with highly regarded legislation and service level responsiveness. The insurance market has grown dramatically over the last five years and continues to develop both in terms of size and unparalleled professionalism. With regard to insurance in general, there are five types of licence available to meet the diverse needs of clients:
Protected Cell Companies
A key feature of a Protected Cell Company (PCC) is that any asset, which is linked to a particular protected cell account can be held as a separate fund, which is not part of the general assets of the PCC, and is held exclusively for the benefit of the account owner of the PCC account and to any counter-party to a transaction linked to that PCC account.
The Mutual Funds Act provides for the registration or recognition and regulation of mutual funds and the licensing of managers and administrators carrying on business in or from within Anguilla.
Meeting the Needs of International Business Clients
Anguilla’s aim is to be the jurisdiction of choice for all of its key product lines and to have pride in its reputation, which is second to none. The island has a first class record of regulatory standards and service levels and strives to provide a responsive and thoughtful attitude to clients’ needs. The private sector, along with Government and the FSC continuously review best practice and respond in a timely manner to change legislation as necessary. New products are being appraised and, if appropriate, will be brought to market to continue the innovative approach to business opportunities, with the client and good regulatory standards always at the forefront of thinking.
By virtue of its constitutional status as an Overseas Territory of the United Kingdom, Anguilla is leading several regulatory initiatives in the Caribbean aimed at profiling the region as one of the most secure areas in which to invest. Indeed the experts say Anguilla, by virtue of its lower profile and strategic positioning, is well placed to join Bermuda and its other Overseas Territory siblings as one of the premier places to do business internationally.
Pam J Webster Pam J Webster is the managing partner of Webster Dyrud Mitchell, her practice areas include Bankruptcy, Company Law, Construction Law, Government Relations, Real Estate and Property Insurance.