Business in Antigua and Barbuda

Operating under a name that does not correspond to the proprietor’s actual surname or the actual names of all partners requires a business name registration (Business Name). Permitted forms include Sole Trader or Sole Proprietorship, Partnership or Firm, Business by Corporation, and certain foreign or trustee business forms. An application for a business name includes, among other things, the business activity, principal place of business, and the applicant’s name, address, nationality and occupation. Applicants must be at least 18 years old and provide valid photo identification. Registration must take place no later than 14 days after the business starts operating. The fee shown on the ABIPCO website is EC$100 for registration, amendment or cessation in each case; a registry inspection costs EC$25, a certificate EC$100 and copies EC$5 per page. A name may not contain terms such as Corporation, Incorporated or Limited and may not be identical or confusingly similar to an existing name. A Company is a separate legal person. Its formation requires, among other things, at least one share, one shareholder, one director and a registered office (Registered Office) in Antigua and Barbuda; required documents include Articles of Incorporation, By-laws, a statutory declaration by a licensed legal practitioner (Attorney-at-Law), and information about the directors and registered office. Name Search and Name Reservation precede incorporation. The Certificate of Incorporation costs EC$500, Name Reservation EC$50, a search EC$40 and certification EC$40. The annual return (Annual Return) costs EC$350; late filing adds EC$50, and the processing time has not been verified. An external company must register as an External Company if it regularly conducts business for profit from an office, share or registry office, or with assets located in Antigua and Barbuda. This requires, among other things, certified company documents, proof of incorporation, a power of attorney and a statutory declaration by an attorney-at-law; the listed certificate fees are EC$750 and EC$350, and the annual return costs EC$200. A trade licence (Trade Licence) is generally required before operations begin for a Merchant, Store-keeper, Shop or Commission Agent. A separate licence is provided for each Establishment, and the proprietor’s or company’s name must be visible at the business location. Statutory exceptions include, among other things, the sale of certain local animals, agricultural produce and manufactured goods, as well as intoxicating liquor; the specific current fee was not stated in the reviewed material. The tax authority (Inland Revenue Department, IRD) issues a tax identification number (Taxpayer Identification Number, TIN) to individuals, businesses and companies. Sole Traders submit UBT001 and F16 together with a Business Registration Certificate or Letter of Particulars and a passport; Companies use CB001 and F16. The sales tax (Antigua and Barbuda Sales Tax, ABST) becomes relevant under the reviewed registration guide when taxable supplies exceed EC$300,000 in the preceding twelve months or an excess is reasonably expected during the next twelve months. The guide dates from 2006, so the threshold should be reconfirmed with the IRD before implementation; a current ABST rate cannot be reliably established from the reviewed source. For Sole Traders, the unincorporated business tax (Unincorporated Business Tax, UBT) rate is 0 percent on chargeable income up to EC$42,000, 8 percent from EC$42,001 to EC$186,000 and 25 percent above that. For Partnerships, the thresholds depend on the number of partners. The annual return and balance payment are due by 31 March of the following year; according to an IRD assessment, quarterly advance payments may also apply. Businesses must keep books and records, while Corporation Tax must be assessed separately from UBT. The small-business law (Small Business Development Act) generally covers businesses with no more than 25 employees, capital investment of no more than EC$3,000,000 and annual turnover of no more than EC$2,000,000, provided they are not wholly or majority-owned subsidiaries of a large business. As a general rule, the majority should be held by nationals of Antigua and Barbuda. Where ownership is majority foreign, additional conditions apply, including exports representing more than 50 percent of production, investment of at least EC$500,000, at least 50 percent local employees and at least 40 percent inputs from local businesses. An application to the investment authority (Antigua and Barbuda Investment Authority, ABIA) requires, among other things, proof of registration or incorporation, a business plan and prior-year accounts or projected financial statements. After approval, a prescribed fee is payable to the registry for the Approved Small Business Certificate. Tax, customs, ABST, withholding, property-tax and stamp-duty reliefs and import concessions may be available, but are not automatic. The EDP supports Micro Businesses with no more than ten employees, annual turnover of no more than EC$300,000, and majority ownership and operation by nationals, with loans of up to EC$25,000. For Small Businesses, it applies, among other things, a maximum of 25 employees, EC$3,000,000 in capital and EC$2,000,000 in turnover; loans may reach EC$75,000. The business should generally have existed for less than five years, unless substantial expansion or job creation justifies an exception. The programme reviews applications online or on paper; security or personal guarantees may be required. The development bank (Antigua and Barbuda Development Bank, ABDB) may guarantee an insufficient security position up to EC$100,000 under the Small Business Development Act, but this does not create an automatic entitlement to financing. A Company must maintain its registered office in Antigua and Barbuda at all times, file an annual return for each calendar year and submit annual accounts or a solvency certificate (Certificate of Solvency), even if it does not trade. Changes to directors, the registered office and other company information, as well as beneficial-ownership information, must be kept current and linked to the applicable compliance obligations. Failures may result in administrative penalties and removal from the register (Striking-off). Changes to a business name must be reported within 14 days; when the business ceases, a Notice of Cessation must be filed within three months. Before hiring the first employee, the employer must register with the social security board (Antigua and Barbuda Social Security Board, ABSSB) within seven days. Employees need a Social Security Number before starting work. In the private sector, social-security contributions amount to 14 percent of insurable earnings, consisting of 6 percent for employees and 8 percent for employers, capped at EC$78,000 annually or EC$6,500 monthly. Payment is due within 14 days after the end of the month; late payments incur a 10 percent surcharge, and an incomplete or incorrect R5A filing costs EC$100 per page. Registration with Medical Benefits and the Board of Education should also be planned based on the registry’s compliance requirements. Registration is provided for self-employed persons; the 10 percent contribution rate stated in an older official notice must be confirmed as current. The financial-services regulator (Financial Services Regulatory Commission, FSRC) is responsible for regulated financial services. Sector-specific approvals, including for Free Trade Zones, cannabis, tourism or regulated financial services, may also be required. There is no evidenced integrated all-in-one clearance process; registry, tax, licensing, employer and, where applicable, land or planning approvals must therefore be checked separately. For Barbuda, land, construction and development projects remain additionally subject to national physical-planning, environmental and land law and depend on the current authority and status of the Barbuda Council and the Land Registry. These approvals should be verified separately before investing in such a project. On a sale or transfer, a new proprietor must submit the business-name amendment or cessation on time and may not rely solely on the old registration. A Company, by contrast, can continue through a share transfer and generally remains a legal person independent of its founders.