Offshore Business in Antigua and Barbuda

The Antigua and Barbuda Advantage...
Since its independence in 1981, the twin-island state of Antigua and Barbuda in the Caribbean has continued to practice a tradition of English Common Law. Located less than 300 nautical miles Southeast of Puerto Rico, in the Leeward Islands. 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. Operations under this Act are controlled by the Ministry of Finance in Antigua.

While Antigua and Barbuda is probably best known as an up-market destination for more discriminating tourists, its natural and developed assets have also allowed it to emerge as an attractive offshore business centre. The country is in a convenient time zone, sharing the same time as New York, Toronto, Central and part of South America, and falling five hours behind the UK and Europe in the summer and four hours in the winter which allows international business to be transacted easily within an appropriate time frame. Antigua's international airport is a major gateway for the Caribbean, serving British Airways, US Air, Virgin Atlantic, American Airlines, Air Canada, BWIA and LIAT, with direct flights from New York, Miami, Toronto and London. Its international telecommunications are excellent, with direct access into the global stream of financial and business data. Electronic funds transfer is readily accomplished, providing same day value, and securities can be placed and executed within 24 hours.

There is a prosperous English-speaking community, with a resident population of 80,000. Its people are involved primarily in business related to the tourism industry and in commerce. The country enjoys the highest per-capita income in the Eastern Caribbean. First-rate professional services are widely available, including banking, law, accounting, and management resources.

International commercial banking has been conducted on Antigua for many years. Offshore banking is more recent, having started in 1983. Since that time the industry has grown rapidly. Working in co-operation with the private sector, the Government has improved Antigua's offshore company and banking environment through the introduction of new foreign residency, trust, and partnership legislation.

International Business Corporations Act of 1982

The prevailing offshore legislation provides for speedy formation of international business corporations (IBCs) at very competitive charges. The formation can be carried out by a locally registered trust company or by an accountant or attorney. Formation can usually be completed within 24 hours and full corporate and trust services are available to both private and corporate investors including:

1. Registration and maintenance of corporate charters for offshore companies;
2. Reception, management, and disbursement of the assets of offshore companies;
3. Provision and maintenance of a registered office;
4. Maintenance of the company's records and statutory register;
5. Preparation of all necessary corporate returns and reports to the Director;
6. Provision of directors and officers on request;
7. Incorporation and management of offshore banks and captive insurance companies; and
8. A full range of traditional trust services.

Internet Gaming

Internet gaming facilities are deemed to be financial institutions under the law. They are regulated by the Financial Services Regulatory Authority (FSRC), which gives the internet gaming operators a high level of comfort in the jurisdiction and in the ability to conduct business on a predictable basis. It is useful to take note of the following points:

a) A 3% tax is payable by operators on their "Net win" defined as "the difference between the gross stakes laid and the winnings paid out".

(b) Operators are entitled to deduct software licensing or software development costs from (a) above, capped at no more than 40% of the Net win for all
companies provided claims for the deduction of such costs are accompanied by documentary support evidencing the costs.

(c) Operators are entitled to deduct charge backs on credit cards for a period up to 18 months after the original charge was made provided claims for the
deduction of such charge backs are accompanied by documentary support evidencing the original credit and the charge back.

(d) The 3% tax on Net Win and the deductibles, as described at (a), (b) and (c) above, are fixed until 2006, after which they will be subject to review by
the Government and the representatives of the Industry.

(e) Operators are entitled to a maximum cap of US$50,000.00 per month on taxes and the Commissioner of Inland Revenue would have no interest in the books of entities that pay the full cap. However, such operators are obliged to continue to maintain financial books and records and to provide access by the Government through its authorised agencies in the event of the need to examine such books and records in accordance with the laws of the State particularly the Money Laundering (Prevention) Act, the International Business Corporations Act and the Proceeds from Crime Act and their amendments.

(f) The maximum cap of US$50,000.00 per month on taxes and the terms and conditions described in (e) above would remain unchanged until 2004, after which they will be subject to review by the Government and representatives of the Industry.

(g) Gaming Licence fees are US$75,000.00 per annum for those Operators who maintain a primary server and operations in Antigua and Barbuda and who pay the tax as described above.

(h) Wagering Licence fees are US$50,000.00 per annum for Operators who maintain a primary server and operations in Antigua and Barbuda and who pay the tax as described above.

The internet gaming industry benefits from high quality telecommunication facilities provided by Cable and Wireless. The costs of such telecommunications are highly competitive and are lower than in the vast majority of jurisdictions which provide a home for internet gaming.

The internet gaming industry benefits from high quality telecommunication facilities provided by Cable and Wireless. The costs of such telecommunications are highly competitive and are lower than in the vast majority of jurisdictions which provide a home for internet gaming.

Applications to operate Internet Gaming Entities should be directed to:

Financial Services Regulatory Commission

Division of Gaming
2nd Floor - West Wing
First Caribbean Financial Centre
Old Parham Road
P.O. Box 588
St John's
Antigua and Barbuda
West Indies
Tel: (268) 481 3300
Fax: (268) 481 3305
Email: Director: director@antiguagaming.gov.ag
General Information: info@antiguagaming.gov.ag