Population
As of 2023, Anguilla's population is approximately 15,000 residents.

Location
Anguilla is situated in the Caribbean Sea, east of Puerto Rico and north of Saint Martin.

Climate and Ecosystems
Anguilla experiences a tropical climate with a dry season from December to May and a rainy/hurricane season from June to November. Its ecosystems include coral reefs and sandy beaches.

Infrastructure
Anguilla has a developing infrastructure with modern amenities such as telecommunications and essential utilities. The island is enhancing its accessibility with the opening of a brand-new ferry terminal in 2023 and the complete redevelopment and expansion of its international airport, designed to significantly increase capacity and offer expanded travel options to Anguilla.

Ports and Waterways
The principal port in Anguilla is the Blowing Point Ferry Terminal, facilitating maritime transportation to and from neighboring islands.

Airports
Clayton J. Lloyd International Airport serves Anguilla, providing regional and international flight connections.

Water and Sanitation
Anguilla maintains a reliable water supply system supported by desalination plants alongside effective sanitation infrastructure.

Electricity
Electricity in Anguilla is supplied by the Anguilla Electricity Company ("ANGLEC"), responsible for the generation and distribution of power throughout the island.

Tourism
Tourism is a pivotal sector in Anguilla's economy, attracting visitors with its pristine beaches, luxury resorts, and vibrant cultural offerings.

Legal System
Anguilla's legal system is based on English common law, supplemented by local statutes. The system is administered by the Magistrate's Court, the High Court, and the Court of Appeal of the Eastern Caribbean Supreme Court. There is a final right of appeal to the Privy Council in the UK. English case law precedents and those of other British Commonwealth countries are persuasive, providing a predictable and familiar legal environment for investors and businesses.

The Anguilla Business Companies Act 2022
The Anguilla Business Companies Act 2022 represents a pivotal reform in Anguilla's corporate legislation, providing a comprehensive framework for the incorporation, operation, and regulation of businesses. This Act replaced the previous Companies Act, International Business Companies Act, and Protected Cell Companies Act, consolidating their provisions into a single, streamlined piece of legislation.

The Act simplifies the incorporation process, enhances corporate governance, and ensures compliance with international standards, making Anguilla an attractive destination for global investors. By incorporating modern regulatory practices, the Act supports transparency, accountability, and effective corporate management, thereby reinforcing Anguilla's reputation as a leading jurisdiction for business operations.

Choosing a Corporate Structure

• Anguilla Business Companies
  These companies conduct business within Anguilla.
• Limited Liability Companies ("LLCs")
  A flexible structure that is often used for both domestic and international business.
• Limited Partnerships ("LPs")
  Consists of general partners (with unlimited liability) and limited partners (with liability limited to their investment).
• Non-Profit Organisations ("NPOs")
  Entities established for charitable, educational, religious, or other non-profit purposes.

Company Formation Process

• Initial Steps
  • Choose the Type of Company
    Decide on the type of company to form (e.g., ABCs, LLCs, LPs)
  • Select a Company Name
    Choose a unique name and check its availability with the Anguilla Commercial Registry ("ACR").
• Necessary Documents
  • Articles of Incorporation;
  • By-Laws or Operating Agreement;
  • Declaration of Compliance;
  • Directors and Shareholders Information.
• Post-Incorporation Requirements
  • Hold an organizational meeting;
  • Register for applicable taxes;
  • Open a corporate bank account;
  • Maintain annual compliance by filing necessary returns and paying annual fees.

Compliance and Legal Considerations

• Commercial Registry Electronic System ("CRES")
  In April 2022, Anguilla introduced the Commercial Registration Electronic System ("CRES"), a modern and customized registration platform. CRES includes the Customer Due Diligence Register, Beneficial Ownership Register, and Commercial Registry, enabling the reporting of entities engaged in relevant activities. This system supports a fully electronic company incorporation process, allowing businesses to be established from anywhere in the world, 24/7, throughout the year. CRES significantly streamlines the registration process, making it more efficient and accessible for global investors.
• Efficiency and Benefits
  The online platform facilitates quick operations, with companies typically becoming functional within 48 hours of submission. Utilizing the CRES system, Anguilla has modernized company formation, ensuring a fast and user-friendly registration experience. This system reduces administrative burdens and provides immediate access to corporate records.

Advantages of Forming a Company in Anguilla

• Tax Benefits
  Companies incorporated in Anguilla pay no income tax, capital gains tax, inheritance tax, corporate tax, or any other direct tax. However, Anguilla has implemented a Goods and Services Tax ("GST") of 13% on all goods and services within the island. The Registered Agent will notify clients when they reach the threshold at which GST becomes payable on invoices.
• Flexibility
  The jurisdiction offers flexible corporate structures and minimal reporting requirements, allowing businesses to operate with greater freedom and adaptability.

Operating a Business

• Opening a Corporate Bank Account
  Prepare incorporation documents and apply for a corporate account at a local bank or through online platforms.
• Reporting Requirements
  Maintain financial records, hold annual general meetings, submit annual reports, and update business licenses annually.

Director and Shareholder Requirements

• ABCs require at least one director and one shareholder, who can be individuals or corporate entities. There are no residency requirements for directors or shareholders, providing flexibility in the management structure.

Maintaining a Registered Office and Agent

• All companies must maintain a registered office and appoint a registered agent in Anguilla. The registered office serves as the official address for legal documents, and the agent facilitates communication with regulatory authorities. A registered agent assists in organizing and documenting board meetings, resolutions, and other corporate governance matters. They help maintain corporate records, including minutes of meetings, share registers, and other essential documents required by law. Businesses in Anguilla must file annual returns and other statutory documents. A registered agent ensures these filings are done accurately and on time, avoiding penalties. Anguilla has stringent anti-money laundering ("AML") regulations. A registered agent ensures that your business adheres to these laws, which is crucial for maintaining credibility and avoiding legal issues. Companies must pay registration fees, annual renewal fees, and any applicable service fees. Timely payment of these fees ensures continuous operation and compliance with legal requirements.

Obtaining a Business License

• Application Process
  Under the Licensing of a Business Act 2021, obtaining a business license involves several steps. Firstly, individuals or entities must identify the specific business activities they intend to undertake, ensuring alignment with the categories outlined in the Act. Next, applicants need to complete the prescribed application form, providing detailed information about their business, including its nature, location, and ownership structure. Supporting documents such as a business plan, proof of identity, and proof of business premises may be required. Upon submission of the application and payment of applicable fees, the licensing authority will review the submission. If approved, a business license will be issued, outlining the terms and conditions under which the business may operate. Compliance with renewal requirements is typically necessary to maintain the license validity.
• Fees and Validity
  Pay the applicable fees and renew the license annually. The fees vary depending on the type and size of the business. Timely renewal of the license is essential to maintain legal operation.

Goods and Services Tax ("GST")
Anguilla imposes a Goods and Services Tax ("GST") on taxable supplies of goods and services. Registered businesses are responsible for collecting GST from their customers at a rate of 13%. They must file periodic GST returns, reporting collected GST and deducting any GST paid on business expenses.

Understanding the Anguilla Labour Code Act, Revised Statutes of Anguilla, Chapter L65, is crucial for businesses operating in Anguilla. This legislation sets out the framework for employment practices on the island, covering essential aspects such as employment contracts, working conditions, wages, holidays, and termination procedures. By complying with the provisions of this Act, businesses can ensure fair treatment of their workforce and mitigate legal risks associated with employment practices.

Comprehending these regulations not only fosters a harmonious work environment but also contributes to the overall success and sustainability of business operations in Anguilla.

Not applicable.

Merchant and Importer Responsibilities
Merchants and importers operating in Anguilla must comply with customs regulations and pay applicable import duties on goods brought into the territory. Adherence to these regulations ensures smooth import operations and mitigates the risk of legal penalties.

Not applicable.

Not applicable.

Legal Restrictions on Foreign Investors
Foreign investors must obtain an Alien Land Holding License to purchase property in Anguilla. This license regulates foreign ownership and ensures compliance with local laws.

Stamp duty payable on transfer

A 5% stamp duty on transfer of land (or undivided share in land) and registration fees are customarily payable by a purchaser.

For a foreign purchaser, an Alien Land Holding Licence is required from the government to legally acquire property which attracts an additional stamp duty of 12.5%. If the land purchased by a non-Anguillian is undeveloped, a 10% refundable deposit is payable by the purchaser pending completion of construction within a specified time noted on the Alien Land Holding Licence.

Not applicable.

Not applicable.

Not applicable.

Not applicable.

Not applicable.

Not applicable.

Terminating a business in Anguilla is a structured process governed by the Anguilla Business Companies Act 2022. This process ensures that the winding up of a company is conducted in an orderly and legally compliant manner. The following steps outline the procedure for voluntarily terminating a business in Anguilla:

• Board Resolution
  The initial step in terminating a business involves the board of directors passing a resolution to wind up the company voluntarily. The directors must resolve that the company be wound up voluntarily. This decision marks the formal initiation of the winding-up process.
• Shareholder Approval
  Following the board's resolution, shareholder approval is required to proceed with the termination. A special resolution must be passed at a general meeting of shareholders. This resolution authorizes the winding up of the company and, if necessary, appoints a liquidator to oversee the process.
• Notice of Termination
  Once the resolution is passed, the company must file a notice of the winding-up resolution with the Registrar of Companies. This notice should include the company's name, registration number, and the date of the resolution. This step ensures that the intention to terminate the business is formally recorded.
• Appointment of a Liquidator
  If the company is solvent, a liquidator must be appointed to manage the winding-up process. The act outlines the responsibilities of the liquidator, which include collecting and realizing the company's assets, paying off its debts, and distributing any remaining assets to the shareholders.
• Winding Up the Company
  The liquidator's primary duties involve the orderly liquidation of the company's assets and settlement of its liabilities. The liquidator must ensure that all debts are paid, and any surplus assets are distributed to the shareholders in accordance with the company's articles of incorporation and relevant laws.
• Final Accounts and Liquidator’s Report
  Upon completing the winding-up activities, the liquidator is required to prepare final accounts showing how the winding-up has been conducted. The act mandates that these accounts, along with a detailed report on the distribution of assets, be prepared. The act further requires that these documents be submitted to the Registrar of Companies.
• Filing Final Documents
  The submission of the final accounts and the liquidator’s report to the Registrar is a critical step in the termination process. The act ensures that these documents are formally recorded, providing a clear and transparent account of the winding-up process.
• Dissolution of the Company
  Once the Registrar of Companies is satisfied that all legal requirements have been met, they will issue a certificate of dissolution, as per the act this certificate marks the official termination of the company's existence. The act specifies that the company ceases to exist from the date of the certificate.
• Public Notice
  To inform the public of the company's dissolution, a notice must be published in the official gazette or other prescribed publication. The act mandates this step, ensuring transparency and public awareness of the termination.

Additional Considerations
In addition to the steps outlined above, companies must ensure that all tax obligations and filings are up to date before termination. Notifying employees and handling any employment-related matters is also crucial. Moreover, any business licenses, permits, and registrations must be canceled to fully comply with regulatory requirements.

Not applicable.