Many people are considering starting a business overseas or expanding their domestic operations to international shores. If this is the case, there are several reasons to consider incorporating in Anguilla.
In addition to offering temperate climes and a beautiful, tropical setting, this Caribbean island offers favorable tax incentives for businesses that incorporate there. However, perhaps Anguilla’s most attractive feature is the ACORN system that gives you access to these tax advantages within 24 hrs.
What is ACORN?
ACORN stands for Anguilla Commercial Online Registration Network. It is an online system designed to facilitate the process of incorporating in Anguilla, allowing for the formation of business entities around the clock and from anywhere in the world.
How Does it Work?
ACORN provides a fast and efficient means of incorporating in Anguilla. Although businesses should always proceed under the advice and supervision of trusted attorneys, a qualified offshore banking and trust establishment, and perhaps overseas agents familiar with the ins and outs of doing business in Anguilla, the ACORN platform is the most expedient way to create and/or form LLCs, limited partnerships, and other types of corporations.
Once you gain access to the system, all you have to do to form your business entity in Anguilla is sign up through the website, select your company type, and proceed to fill in all applicable information through online forms. Once you’re finished and you’ve paid any associated registration fees, you’ll be issued a certificate, articles of registration and your company will be entered instantaneously into the ACORN database. Afterwards, you can access ACORN resources including company name searches, certificates of Good Standing and information on legislation etc.
Who Can Use ACORN?
There are two ways to gain access to the ACORN system:
- As a licensed Company Manager or as a licensed Trust Company in Anguilla.
- As an Overseas Agent to one of the existing local Registered Agents.
How to Register As a Company Manager or Trust Company
The registration for Company Managers and Trust companies are guided by legislation see link to Financial Services legislation here.
Both Company Managers and Trusts require the submission of an application to the Director of Financial Services for approval. For additional information, interested persons and businesses should contact the Anguilla Financial Services Commission using this site.
How to Become an Overseas Agent
ACORN allows businesses located overseas to have a virtual presence in Anguilla. As an Overseas Agent you can serve your clients needs directly with the Registry.
To become and Overseas Agent:
You must first contact a licensed Company Manager or Trust Company and establish a commercial agency agreement, as this will satisfy the requirement for a registered office in Anguilla.
You will need to apply to the Anguilla Financial Services Commission (AFSC) for approval and authorization to use the ACORN system. This is done by means of a simple application which can be downloaded here. (*$250.00 USD)
Once you have completed all the initial documents First Anguilla Trust Company Limited can help progress the application on your behalf.
It is important to note that the application form should be submitted to the Financial Services Commission through the locally based Company Manager or Trust Company that you wish to work with. Once all application and registration fees are satisfied you will be granted access to a full range of company registry services 24 hours a day, 365 days a year.
For More Information
The ACORN system is merely a platform that makes it easier and more expedient for businesses like yours to benefit from advantageous tax incentives and reach your goals of operating in Anguilla faster than ever.
If you would like more information on the ACORN system, Company Managers or working with First Anguilla Trust Company Limited as an Overseas Agent we are more than happy to answer any questions you may have.
Limited Liability Companies have become popular among small businesses because they infer both benefits of a corporation (i.e. protection for individual members) and a partnership (i.e. pass-through entity for tax purposes). This business structure offers the best of both worlds. The business entity is separate from the individuals, providing Member protection against traditional corporate liabilities, but the entity itself is not taxed, so owners/members only have to pay income tax.
Delaware LLCs operate on the same basic principles as other LLCs. However, Delaware LLCs are a bit more flexible in that Members may be, but need not be, Managers. These Managers take on no personal liability concerning the debts or obligations of the company. It is this form of LLC that has been adopted in Anguilla, making it a prime location to create an LLC and open a business.
Of course, there are plenty of benefits to be gained by Anguilla company formation. Here are just a few of the advantages Members will enjoy.
Asset Protection
The single best reason for Anguilla company formation as an LLC or any business structure for that matter is to protect personal assets from business liabilities. LLCs allow for the creation of a separate legal entity that bears the burden of liability. This, in turn, creates a legal shield for owners or members of the LLC that even lawsuits can’t penetrate (provided the company operates in a legal and ethical manner).
Pass-through Taxation
In some business structures, the company is taxed on profits and allowed to deduct losses. Employees then receive salaries which they are taxed on when filing personal income tax returns.
In other words, double taxation occurs. It’s a price many corporate entities are willing to pay for the legal protections that are part and parcel of operating as a corporation instead of a sole proprietorship or a partnership, just for example.
However, this is not the principle on which an LLC operates. In this type of entity, members are not only protected from liability, but pass-through taxation ensures single taxation by which profits pass through the business entity directly to members, who are then taxed on earnings.
Flexible Member and Management Options
Anguilla LLCs can have one owner or Member or many. Members can be Managers or not. In other words, Members have a lot of flexibility when it comes to the membership and management structure of the company.
Annual Requirements
Many corporate structures have a slew of requirements concerning recordkeeping, shareholder meetings, and so on. Whereas the Anguilla LLC is expected to keep financial records, there is no statutory requirement for an LLC to file financial statements with the Companies Registry. There is, however, a nominal annual government fee paid to ensure the LLC remains in good standing.
The enactment of the International Business Companies Act in October 2000 has made the country of Anguilla an increasingly attractive location for incorporating a business. Registering an international business company in the region makes that entity exempt from taxes and the registration process can be completed in as little as 24 hours.
Anguilla comes with a range of other perks with respect to shareholder and director requirements, flexibility in capitalization and the sales of shares, and perhaps the most attractive component of all, the International Business Companies Act provides for the utmost privacy from auditors or liquidators unless mandated by a court of law. A company registered in Anguilla needs no more than one shareholder and one director, who can both be the same individual. In fact, the shareholder or director don’t even need to be a person, either – they can be another entity instead. The only real restrictions on these types of businesses are that they can’t conduct business or own real estate within Anguilla.
ACORN
An acronym for Anguilla’s Commercial On-line Registration Network, this online registry is the fastest way to incorporate any business in Anguilla. Anguilla-based managers, trust companies, and agents manage the ACORN network, providing an electronic method for expediting the registration of just about any form of corporate entity. These newly registered businesses can include standard companies, international business companies, limited liability corporations, or limited partnerships.
Signing Up with ACORN
The official Anguilla registry allows for individuals to sign up as a Company Manager. They also accept registrations from approved agents located overseas. Incorporation is as simple as selecting the type of entity and entering all of the relevant information into the registry’s online application forms.
Once those are all completed and the fees are submitted, the registry will issue a certificate of incorporation that users can print out for proof. Once registered, users can also perform company name searches and view updated legislation that applies to incorporation requirements in the country. It even keeps a record of all business transacted in the system. ACORN is a complete and thorough database that can assist in business dealings even after incorporation is complete.
For more information regarding incorporations or becoming an overseas agent partner feel free to contact us at 1-264-461-8800 or e-mail us at crgumbs@firstanguilla.com.
Foundations are generally non-profit organizations that are funded with the goal of philanthropy. There are just about as many foundations as there are causes that need funding. Foundations could offer scholarships to students that meet certain criteria or help to fund hospitals; they could provide aid to underprivileged groups or poverty-stricken regions. The goal could be replanting areas of deforestation, working to save endangered species, or educating the public about global warming. Whatever the cause or philanthropic goal, you could create a foundation to fund it.
There are also different structures for foundations. For example, many corporate entities elect to start corporate foundations as a means of better directing their philanthropy and ensuring all applicable tax incentives.
Many wealthy individuals, families or small businesses seeking to gain similar benefits decide to form private foundations. What makes them unique is that they tend to have a single, primary donor and they are managed by their own board of directors or trustees.
What separates private foundations from public ones is that they seek no additional donations. Instead, they earn money to continue funding the foundation through investing the initial donation, after which earnings may be distributed annually via charitable or commercial activities, preserving the initial donation for further investment.
But why would a family or business want to participate in forming such a foundation? How would one go about setting it up? Here are a few things you need to know.
Why Form an Offshore Private Foundation?
There are several good reasons to form a private foundation. First and foremost, it provides an opportunity for targeted philanthropy. The funds generated by a private foundation can either be funneled into charitable activities directed by the foundation or they can be gifted to other charitable organizations that are already doing the type of philanthropy the foundation supports.
For families or businesses that wish to retain some measure of control over how the foundation’s money is directed, a private foundation can offer more opportunities than its public counterpart. There are also financial benefits to be gained, of course.
Individuals, families, and businesses with excess wealth may be interested in philanthropy not only because it makes them feel good to help others, but also because there are potential tax incentives to be gained in the process. Instead of giving money to the government for taxes, many would rather see those funds go to those in need.
Notably, not all foundations engage in philanthropy. Frequently, foundations are used for estate planning and asset protection purposes. Creating a foundation makes smart financial management sense, entrepreneurs take advantage of foundation benefits such as minimizing estate taxation liability, creating sustainable employment for family members as well as, ensuring the continuity of their business after death.
There are other ways to protect wealth. One need only to seek out a trust company in Anguilla to learn about viable options. However, forming a private foundation serves two goals. It can offer both financial and spiritual benefits to founders.
How to Get Started
Just like forming an offshore company, a foundation begins with doing some research. You’ll probably want to start by hiring an experienced Trust Manager such as First Anguilla Trust Company Limited to guide you through the process and make sure you set up the foundation appropriately.
You’ll need to decide on the amount of the primary donation, how the money will be invested, and the vehicle for fund disbursal (either through directed activities or gifts to other charitable organizations). In addition, you must create bylaws, select a board of trustees, and set award criteria. You’ll also need a plan for managing funds.
Before you create a trust to protect your money, you have to find a reputable trust company in Anguilla to help you. The same principle applies to starting a private foundation. With proper guidance, you can ensure a successful undertaking.
Why Choose Anguilla?
One good reason to form an offshore private foundation in Anguilla is the relatively low costs. There could be any number of costs associated with forming and maintaining an offshore private foundation, depending on where you choose to set it up.
Foundations established in Anguilla require government registration fees of $500-700 US, plus annual $500 fees. You’ll also need a minimum of $10,000 to fund the foundation, as well as whatever fees are required by the agent handling the formation of the foundation.
Of course, you could pay a lot more to form and manage a private foundation elsewhere. In the U.S., for example, private foundations must pay an annual excise tax of 1-2% of earnings, which could amount to a lot more than a few hundred dollars.
Additionally, in Anguilla, you have the option of creating a Registered or Deposited Foundation. Foundations that pursue commercial trade and/ or have by-laws which provide for this are called Registered Foundations and details including purpose, assets, beneficiaries etc.must be entered in a public register. However, foundations that do not engage in commercial activity simply deposit the deed at the registry. Consequently, a high degree of privacy is provided.
In addition, those who form foundations in Anguilla can expect the same flexibility, confidentiality, security, and protection they receive from their trust company in Anguilla. This is good news for any individual, family, or business looking to ensure that their endowment is properly managed and that funds are granted according to their wishes.
![Banking Accounts for Offshore Companies]()
Are you able to have a bank account for offshore companies? The simple answer is yes. First Anguilla Trust will help you set one up so that you can keep track of your finances and be more confident in your company’s spending. However for those who are not familiar with the process, here are some handy things to keep in mind as you go through the process.
You do have the ability to go through this process yourself, but if you have someone create the account for you then there are many advantages. One of which is that you do not have to worry about the paperwork, and the right bank can also be chosen for you and your company. Ask to see if there is a debit or credit card needed for the account and what other special circumstances may apply to you.
Here is a list of documents required to open up a corporate offshore account:
- A notarized copy of your passport
- Notarized copy of a utility bill
- A Bank Reference: This is generally a letter from your bank with an official letterhead stating that you have been with the bank for a number of years and have been an upstanding customer.
- A Professional Reference: there are some banks that require these, although they are more rare.
- Full Set of Notarized Company Documents: This includes memorandum, articles of association, certificate of good standing, and a company structure diagram.
- Detailed Business Plan
Going through a third party can help in the assembly of these documents. First Anguilla Trust has many great tools to help you through this process.
