Doing Business with Antigua & Barbuda

DOING BUSINESS WITH
ANTIGUA & BARBUDA

May 2007

Caribbean Export Development Agency (Caribbean Export)
P. O. Box 34B, Brittons Hill
St. Michael
Barbados
Tel: (246) 436-0578
Fax: (246) 436-9999
E-mail: info@carib-export.com
Website: www.carib-export.com

DOING BUSINESS WITH ANTIGUA AND BARBUDA

DOING BUSINESS WITH ANTIGUA & BARBUDA

TABLE OF CONTENTS

1. GENERAL INFORMATION..................................................................................... 3
2. THE ECONOMY........................................................................................................ 5
2.1 Structure of the Economy ................................................................................... 5
Recent Economic Performance....................................................................................... 5
2.2 Balance of Payments........................................................................................... 6
2.3 Overview of Trade .............................................................................................. 6
2.3.1 Exports ............................................................................................................ 6
2.3.2 Imports ............................................................................................................ 7
2.4 Antigua and Barbuda Trade with CARICOM .................................................... 7
3. GENERAL MARKETING FACTORS...................................................................... 8
3.1 Distribution and Sales Channels ......................................................................... 8
3.3 Transportation ..................................................................................................... 8
4. MARKET ACCESS CONDITIONS ........................................................................ 10
4.1. Customs Tariffs................................................................................................. 10
4.2 Free Trade Agreements..................................................................................... 10
4.3 Internal Taxes................................................................................................... 10
4.4 Non-Tariff Barriers ........................................................................................... 11
4.5 Import Documentation ..................................................................................... 11
4.6 Labelling and Marking Requirements .............................................................. 11
4.7 Prohibited and Restricted Imports .................................................................... 12
4.8 Standards........................................................................................................... 12
5. INVESTMENT PROFILE........................................................................................ 13
5.1 Investment Incentives Schemes ........................................................................ 13
5.2 Foreign Investment Regime.............................................................................. 14
6. ESTABLISHMENT OF BUSINESSES ................................................................... 16
6.1 Right to Private Ownership............................................................................... 16
6.1 Establishing an Office....................................................................................... 16
6.3 Work Permit Requirements............................................................................... 16
6.4 Intellectual Property Rights .............................................................................. 17
6.5 Conversion and Transfer Policies ..................................................................... 17
7. CULTURAL PRACTICES....................................................................................... 18
7.2 Entry/Exit Requirements:.................................................................................. 18

2


1. GENERAL Principal Cities and Population:
INFORMATION (2005 est.)
The island of Antigua is divided into six
Official Name: Antigua & Barbuda parishes:
St. Johns (capital) 21,514
Capital: Saint John’s (population St. Paul 6,117
21,514) St. Mary 5,303
St. George 4,473
Area: Antigua--281 sq. km. (108 sq. St. Peter 3,622
mi.); Barbuda--161 sq. km. (62 sq. mi.)
The island of Barbuda (pop. 1,241) and
Population: 69,481 (July 2007 est.) the uninhabited island of Redonda each
enjoy dependency status. 2
Population growth index: 0.527%
(2007 est.) Airports: V.C. Bird International
Airport, located on the northeast corner
Population density: 184 inhabitants of Antigua, is the point of entry for
per square kilometer visitors arriving by air to Antigua &
Barbuda.
Official language: The official
language of Antigua and Barbuda is Ports: Cruise ship ports are located at
English, but many of the locals speak St. John's Harbour and Heritage Quay.
Antiguan Creole.
Holidays:
Currency: Eastern Caribbean Dollar
(EC$) New Year’s Day Jan 01
Good Friday Apr 06
Exchange rate: EC$2.7=U.S. $1 Easter Monday Apr 09
(June 2007) Labour Day May 07
Whit Monday May 28
Climate: Temperatures generally Carnival Monday (J’ouvert) Aug 06
range from the mid-seventies in the Carnival Tuesday (Last Lap) Aug 07
winter to the mid-eighties in the Independence Day Nov 01
summer. Annual rainfall averages only National Heroes Day Dec 09
45 inches, making it the sunniest of the Christmas Day Dec 25
Eastern Caribbean Islands, and the Boxing Day Dec 26
northeast trade winds are nearly
constant, flagging only in September. Literacy Rate:
Low humidity year-round.1 Total Population - 85.8%

1 2
http://www.antigua-
barbuda.org/index.htm http://www.state.gov/r/pa/ei/bgn/2336.htm

3


Life expectancy at birth:
Total Population - 72.42 years

Local Time: UTC-4 (1 hour ahead of
Washington, DC during Standard Time)

Telephone Codes: 268

Health: Medical facilities in
Antigua and Barbuda include the Mount
St John Medical Center and the
Holberton Hospital which provide
affordable health care for all citizens.
The construction of new clinics and
restoration of existing ones continues in
2007.3

3

http://www.eclacpos.org/profile/profileByCountr
y.asp?country_id=1&country_name=ANTIGUA
%20AND%20BARBUDA

4


2. THE ECONOMY tax reforms, civil service downsizing,
measures to improve the investment
2.1 Structure of the Economy climate, plans to reform the ailing social
security system, and an impending
The economy in Antigua and Barbuda is strategy to regularize relations with
small and open. Therefore, the country is creditors. These efforts have been
subject to the vagaries of the economic complemented by extensive outreach to
conditions in countries from which it build public support. Successful
imports goods and services. To some implementation of the ongoing and
extent, the effect of imported prices on planned reforms could mark a watershed
the economy is moderated because the for Antigua and Barbuda’s economic
country’s official currency, the Eastern prospects.
Caribbean dollar, enjoys a fixed
exchange rate with the US dollar The reform drive has benefited from an
(EC$2.70 = US$1.00). The Eastern upswing in recent economic activity.
Caribbean dollar which Antigua and The economy is experiencing its third
Barbuda shares with other countries of consecutive year of high growth, driven
the Leeward and Windward Islands is by a construction boom in hotels and
the strongest of the Caribbean housing, as well as projects related to the
currencies. 2007 Cricket World Cup. Growth in
2006 is expected to reach 8 percent,
Tourism is the largest contributor to the among the highest in the region. Over
economy, accounting for more than half the medium term however, growth will
of GDP. Agriculture and fisheries have slow as the construction boom winds
dropped from 40 percent of GDP in the down. Inflation has remained low,
1960s to about 12 percent. largely reflecting the stability provided
Manufacturing industries, which thrived by the regional quasi-currency board
in the decade of the 1980s, are export arrangement.5
oriented and produce garments, paint,
furniture, bedding and galvanized GDP (2005): US$875.8 million.
sheets.4 GDP growth rate (2005): 3.2%.
Per capita GDP (2005): US$12,586.
The government of Antigua and Barbuda
has adopted an ambitious reform Recent Economic Performance
program in its endeavor to pull the
economy from decades of fiscal Antigua and Barbuda’s service-based
weakness-characterized by persistent economy grew by 3.2 percent in 2005,
fiscal deficits, a triple-digit debt burden, compared with 5.2 percent in 2004.
endemic arrears, and a large civil Construction, banking and insurance,
service-and declining growth rates. The communications, and wholesale and
reform agenda includes comprehensive

4 5

http://www.ab.gov.ag/gov_v2/business/economy http://www.imf.org/external/np/sec/pn/2007/pn0
.html 707.htm

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retail trade sectors were the main US$160.7 mn in 2004. Debt relief
contributors to economic growth. obtained on the two large external loans
renegotiated in 2004 distorted the overall
The economy is experiencing its third balance of payments deficit in 2004. 6
consecutive year of high growth, driven
by a construction boom in hotels and 2.3 Overview of Trade
housing, as well as projects related to the
2007 Cricket World Cup. The tourism Antigua and Barbuda is a beneficiary of
and hospitality sector has largely the U.S. Caribbean Basin Initiative that
recovered after the decrease in tourism grants duty-free entry into the United
following the September 11, 2001 States for many goods. In 2005, 7.7
terrorist attacks. It posted a strong percent of its total exports went to the
performance in 2004, and in 2005 the United States, and 48.9 percent of its
sector was estimated at 50 percent of total imports came from the United
GDP. States. Antigua and Barbuda also
belongs to the predominantly English-
To lessen its vulnerability to natural speaking Caribbean Community and
disasters and economic shocks, Antigua Common Market (CARICOM) and the
has sought to diversify its economy by CARICOM Single Market and Economy
encouraging growth in transportation, (CSME). 7
communications, internet gambling, and
financial services. 2.3.1 Exports

2.2 Balance of Payments Exports--US$58 million (merchandise)
and US$454 million (commercial
Preliminary estimates of the balance of services)
payments for 2005 indicated that the
current account deficit widened to Major markets--European Union
US$96.9 mn from US$88.5 mn in 2004. (23.2%), United States (7.7%), Anguilla
This increase in the recurrent account (7.0%), St. Kitts and Nevis (10.3%),
deficit occurred mainly because of a Netherlands Antilles (23.4%)
widening in the merchandise trade
deficit to US$331.5 mn from US$323.6
mn in the previous year. At the same
time, the surplus on the services account
contracted by 2.5 percent to US$265.9
mn mainly because gross tourist receipts 6
remained unchanged at US$337.7 mn,
http://209.85.165.104/search?q=cache:dTPryS6
despite the decline in tourist arrivals. On w3ssJ:www.caribank.org/Publications.nsf/ERevi
the capital and financial account, a ew2005_antiguabarbuda/%24File/ECReview200
surplus of US$55.7 mn was recorded 5_antiguabarbuda.pdf%3FOpenElement+antigua
compared to a deficit of US$54.8 mn a +%26+barbuda,+balance+of+payments&hl=en&
year earlier. The estimated overall ct=clnk&cd=13
balance of payments deficit was 7

US$41.2 mn in 2005, compared with http://www.state.gov/r/pa/ei/bgn/2336.htm

6


2.3.2 Imports

Imports--$497 million (merchandise)
and $197 million (commercial services)

Major suppliers--United States (48.9%),
Netherlands Antilles (10.2%), European
Union (11.6%), Trinidad and Tobago
(10.9%), Canada (3.7%) 8

2.4 Antigua and Barbuda’s Trade
with CARICOM

In 2005, Antigua and Barbuda’s imports
were in excess of EC$209 million while
exports to CARICOM were a mere
EC$73 million leading to a trade deficit
of EC$136 million.

Antigua and Barbuda’s top exports to
CARICOM in 2005 included; paints and
varnishes, rum and tafia, and aerated
beverages. The top imports included
petroleum products, beer, wheat,
cigarettes and aerated beverages.

8

http://www.state.gov/r/pa/ei/bgn/2336.htm

7


3. GENERAL enough, or for a particular brand or type
MARKETING FACTORS of product that moves in large volumes.
This is normally done by establishing a
3.1 Distribution and Sales Channels relationship with the large grocery
stores, and sending a salesperson on a
regular basis to place orders. Direct
Manufacture agents/distributors is the selling is almost non-existent in many
most widely used form of importing CARICOM countries.
goods into Antigua and Barbuda, since
the small size of the market does not 3.2 Promotion
merit establishment of a distributor
network. There is normally no specific TV, radio, print advertising are widely
legislation in this regard. Contracts accepted practices.
normally state that the agent is not to be
regarded as an employee or partner of 3.3 Transportation
the principal. However, long-term
distributors/agents sometimes acquire Antigua’s international airport is a major
certain claims on distribution rights that gateway for the Caribbean, serving
go beyond and, in some cases, supersede British Airways, US Air, Virgin
contract rights under local common law Atlantic, American Airlines, Air Canada,
interpretations. BWIA and LIAT, with direct flights
from New York, Miami, Toronto and
A strong network of manufacture agents London.
exists throughout the Caribbean. These
agents represent large manufactures and Regarding regional transport, LIAT
provide a sales and marketing team for airlines, continues to be the leading
the brand, and fully represent the provider of travel from Antigua and
company's interests in a particular Barbuda to the rest of the Caribbean and
country. They bring in container loads the country continues to invest in the
of product, warehouse, market, sell and airlines. 9
distribute them. Often, these agents
represent a full range of goods from Major road development is expected in
suppliers. Antigua and Barbuda in 2007. Plans to
increase spending on repair and
Miami consolidators are used by many maintenance of the roads on both islands
of the larger retail stores, which do are in progress. The government also
regular buying trips to the large Miami plans to construct a transportation hub
consolidators, who offer the no frills which will house a shopping plaza, car
buying concept at exceptionally good park, vehicle inspection station and a bus
prices and consolidate container loads of terminal. To ensure a reliable and
goods.
9

Direct selling to the end retailer is far http://www.eclacpos.org/profile/profileByCountr
less used but could be advantageous y.asp?country_id=1&country_name=ANTIGUA
where the range of products is large %20AND%20BARBUDA

8


affordable transportation system on the
islands, the duty on vehicular parts for
any driver who operates a taxi, bus or
tour vehicle were reduced by 50%.

9


4. MARKET ACCESS 4.2 Free Trade Agreements
CONDITIONS
Antigua and Barbuda is a member of
4.1. Customs Tariffs Caricom and a beneficiary of Lomé IV,
Caribcan, and the Caribbean Basin
The Customs Tariff classification is Initiative (CBI) trading agreements.
based on the Brussels nomenclature, and
the Brussels definition of value is used Other trade agreements signed and in
for Customs valuation purposes. Rates of force: Multilateral WTO member since
customs duty range from 5 percent to 70 01 January 1995; CARICOM member
percent, but a wide range of goods are since 04 July 1973; CARICOM –
free of customs duty. Additional special Colombia since 24 July 1994;
rates apply to tobacco, cement, CARICOM – Venezuela since 13
petroleum products, vans and lorries, October 1992. Trade agreements signed
and certain types of timber. but not in force: CARICOM – Costa
Rica since 09 March 2004; CARICOM –
Dominican Republic since 22 August
All OECS Members apply additional 1998.11
charges on most or all imports. Antigua
and Barbuda applies a customs service 4.3 Internal Taxes
charge (CSC) at a rate is 5%, The CSC
applies to imports from other 4.3.1 Corporation Tax
CARICOM countries, but not to imports
by government agencies. Incorporated, registered or continued
companies are charged a 40 percent tax
The environmental (returnable tax) levy on profit.
provides for a deposit levy to be charged
on all aerated beverages, malt, water, Unincorporated businesses pay a two
stout and beer bottles and cans at a rate percent tax on gross income. However,
of EC$0.25 per bottle/can. However, it is the first $4,166 of gross income in any
refundable subject to the re-export or calendar month is exempt.
crushing of the containers. The levy is
only collected on imported products. 4.3.2 Property Tax

In addition to the CSC and Residential - tax on residential properties
Environmental levy consumption tax – is based on the current construction
varies from 0-70%, and excise tax – replacement cost of the property. In
varies from 0% - 50%.10 addition, there is a surcharge (0-20%)
depending on zoning regulations.

10 11
http://e-fpo.fpo.go.th/e-
fiscal/PWGuides/individualguides/DOCS/wcd00 http://www.sice.oas.org/ctyindex/ATG/ATGagre
009/wcd009d1.htm ements_e.asp

10


Commercial - hotels are taxed at a rate 4.6 Labelling and Marking
of 1/5 of one percent of their taxable Requirements
value. Other commercial properties must
pay 3/4 of one percent taxable income. The Antigua and Barbuda Bureau of
Standards has notified nine (9) standards
4.3.2 Export duties as National (Voluntary) Standards these
will soon be declared as mandatory
Antigua and Barbuda does not impose standards/ Technical Regulations. They
any export duties, except for those on are as follows:
lobsters, sea-island cotton, sugar,
molasses and fish.12 1. Antigua and Barbuda Specification
for Pre-package ice
2. Antigua and Barbuda Specification
for Packaged Water(Mineral Water,
4.4 Non-Tariff Barriers Spring Water, Purified Water)
3. Labelling of Commodities Part 1:
In Antigua and Barbuda, imports of 80 General Principles
products and any import from 34 4. Labelling of Commodities Part 2:
countries require an import license. Labelling of Pre-package goods
Different agencies are involved in 5. Labelling of Commodities Part 3:
granting the licenses. Labelling of Pre-package foods
6. Labelling of Commodities Part 4:
Clearing customs takes on average three Labelling of Pesticides
days in Antigua and Barbuda. 7. Labelling of Commodities Part 5:
Labelling of Brewery Products
8. Antigua and Barbuda Specification
4.5 Import Documentation for new and used pneumatic tyres

The documents required for importation These standards were prepared to
are an invoice, a certificate of origin, a provide basic information that applies to
bill of lading, shipping documents, a the labelling of goods. It is intended for
declaration of value, and, for certain use by manufacturers, importers, and
items, an import license. Demurrage is retailers.
payable if a consignee delays clearance
of goods. These standards will be compulsory as
will all labelling standards. Therefore
failure to comply with these standards
constitutes a breach of the laws
administered by the Antigua and
Barbuda Bureau of Standards.

These standards are based on JS 1: Part
12 1: 1984 - Jamaican Standard
http://www.ab.gov.ag/gov_v2/business/taxissues. Specification for the Labelling of
html Commodities. Part 1: General Principles.

11


SCOPE - These standards describe standards and standards related matters
general labelling requirements for all that are relevant to the sustainable
commodities which are customarily development of the nation's economy.
labelled in the course of trade, except for
those, for which more specific The ABBS participates in the work of
requirements have been elsewhere standardisation at both the regional level
prescribed. 13 as a member of the CARICOM Regional
Organisation for Standards and Quality
(CROSQ), and at the international level
4.7 Prohibited and Restricted being a signatory to the WTO/TBT Code
Imports of Good Practice for Standardization and
having responsibility for the National
Most goods may be freely imported Enquiry Point for the WTO/TBT
under an open general license granted by Agreement.
the Ministry of Finance. Certain
commodities require individual licenses The work of the ABBS presently
unless they are imported from consists mainly of information services
CARICOM countries. Citrus fruits may that are supported by training workshops
not be imported from North America. in areas such as Metrology and ISO
There are import restrictions on certain 9000 awareness, quality systems,
basic foodstuffs, such as rice, sugar, Internal audits and Food Safety
fresh fruit, and vegetables, which are (HACCP) systems. The ABBS,
controlled by the government's Central however, is currently engaged in
Marketing Corporation. These items developing legislation and acquiring
may be imported in small quantities infrastructure that will provide a
under license. Also, certain locally made capacity for offering metrology services
or assembled products have been as well as other testing services.
protected in the past, but the trend is to Standards Development and responses to
relax these controls. product-related complaints are dealt with
in cooperation with various private and
public organisations as well as other
4.8 Standards regional bureaux. 14

The Antigua and Barbuda Bureau of
Standards (ABBS) is the National
Standards Body (NSB) of Antigua and
Barbuda, established under the
Standards Act (1987), Cap.411 of the
Revised Laws of Antigua and Barbuda
1992. The ABBS has responsibility for
the promotion and promulgation of

13 14

http://www.abbs.gov.ag/abbs_info/Standards/lab http://www.iso.org/iso/about/iso_members/iso_
elgen-princ.htm member_body.htm?member_id=1543

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5. INVESTMENT PROFILE The legal basis for Antigua and
Barbuda’s tax holidays for investors is
5.1 Investment Incentives Schemes codified on the Fiscal Incentives Act.
The length of the ‘holiday’ depends on
Antigua and Barbuda welcomes foreign the amount of value added in Antigua
investment and provides a hospitable and Barbuda. The definition of local
environment and generous incentives to value added is the amount realised from
encourage such investment. the sales of the product over a
continuous period of 12 months, minus:
The government is keen to assure
investors that their investments are a) Cost of imported raw materials,
secure and well protected. Therefore, components, parts of components, fuels
Investment Protection Agreements have and services;
been signed with the Federal Republic of
Germany and with the United Kingdom. b) Wages and salaries paid to foreign
nationals;
While the Government intervenes in the
economy as a regulator in some c) Profits and dividends distributed to
instances, the private sector is the foreign nationals;
dominant force in the economy. The
government and the ruling United d) Interest, management charges and
Progressive Party (UPP) are committed other income payments to not-residents
to upholding the principle of free (including companies); and
enterprise and this pledge is hared by the
main political parties. Successive e) Depreciation of imports of plant,
governments have respected the machinery and equipment.
agreements and commitments made
between previous administrations and The government offers numerous
investors. concessions to investors, particularly if
the investment is substantial. Typical
No investor has ever had assets concessions include:
nationalised or been forced to leave the
island. Under the island’s constitution, • Freedom from the payment of
property can only be nationalised in Corporate Tax on the profits arising
exceptional circumstances and even in out of the profitable operations of the
such cases the country’s constitution company for a period of 15 years in
demands that fair compensation must be the first instance which is eligible for
determined by an independent authority renewal for a further 15 years;
and must be paid promptly. This
constitutional requirement is unusual in • Waiver of all import duties on
developing countries and casts Antigua consumption tax on the importation
and Barbuda in a very attractive light for of materials and equipment used in
investment. the operations of the company;

13


• Grant of an export allowance in the business to be transacted easily within an
form of an extended tax holiday on appropriate time frame.
the exportation of goods produced in
Antigua and Barbuda.15 International commercial banking has
been conducted on Antigua for many
5.2 Foreign Investment Regime years. Offshore banking is more recent,
having started in 1983. Since that time
OECS foreign investment receives the industry has grown rapidly. Working
national treatment in all OECS Member in co-operation with the private sector,
countries. The only restriction generally the Government has improved Antigua’s
relates to requirements for obtaining offshore company and banking
alien landholding licences. The rationale environment through the introduction of
for this restriction is related to new foreign residency, trust, and
limitations in land availability for partnership legislation.
commercial purposes, and the need to
rationalize land use and enable nationals The International Business Corporations
to afford property while avoiding Act of 1982 provides for speedy
speculation by foreign nationals. formation of international business
Licences are subject to satisfactory corporations (IBCs) at very competitive
applications to national Cabinet of charges. The formation can be carried
Ministers and the payment of requisite out by a locally registered trust company
fees. However, licences are not required or by an accountant or attorney.
in a number of cases, such as investment Formation can usually be completed
in sectors considered of priority for the within 24 hours and full corporate and
country, or where the purchase does not trust services are available to both
exceed a certain threshold. private and corporate investors
including:

While Antigua and Barbuda is probably Registration and maintenance of
best known as an up-market destination corporate charters for offshore
for more discriminating tourists, its companies; Reception, management, and
natural and developed assets have also disbursement of the assets of offshore
allowed it to emerge as an attractive companies; Provision and maintenance
offshore business centre. The country is of a registered office; Maintenance of
in a convenient time zone, sharing the the company’s records and statutory
same time as New York, Toronto, register; Preparation of all necessary
Central and part of South America, and corporate returns and reports to the
falling five hours behind the UK and Director; Provision of directors and
Europe in the summer and four hours in officers on request; Incorporation and
the winter which allows international management of offshore banks and
captive insurance companies; and a full
range of traditional trust services.
15

http://www.ab.gov.ag/gov_v2/business/insentive
forinvestors.html

14


5.2.1 Internet Gaming Revenue would have no interest in the
books of entities that pay the full cap.
Internet gaming facilities are deemed to However, such operators are obliged to
be financial institutions under the law. continue to maintain financial books and
They are regulated by the Financial records and to provide access by the
Services Regulatory Authority (FSRC), Government through its authorised
which gives the internet gaming agencies in the event of the need to
operators a high level of comfort in the examine such books and records in
jurisdiction and in the ability to conduct accordance with the laws of the State
business on a predictable basis. It is particularly the Money Laundering
useful to take note of the following (Prevention) Act, the International
points: Business Corporations Act and the
Proceeds from Crime Act and their
a) A three percent tax is payable by amendments.
operators on their “Net win” defined as
“the difference between the gross stakes (f) The maximum cap of US$50,000.00
laid and the winnings paid out”. per month on taxes and the terms and
conditions described in (e) above would
(b) Operators are entitled to deduct remain unchanged until 2004, after
software licensing or software which they will be subject to review by
development costs from (a) above, the Government and representatives of
capped at no more than 40 percent of the the Industry.
Net win for all companies provided
claims for the deduction of such costs (g) Gaming Licence fees are
are accompanied by documentary US$75,000.00 per annum for those
support evidencing the costs. Operators who maintain a primary server
and operations in Antigua and Barbuda
(c) Operators are entitled to deduct and who pay the tax as described above.
charge backs on credit cards for a period
up to 18 months after the original charge (h) Wagering Licence fees are
was made provided claims for the US$50,000.00 per annum for Operators
deduction of such charge backs are who maintain a primary server and
accompanied by documentary support operations in Antigua and Barbuda and
evidencing the original credit and the who pay the tax as described above.
charge back.
The internet gaming industry benefits
(d) The three percent tax on Net Win and from high quality telecommunication
the deductibles, as described at (a), (b) facilities provided by Cable and
and (c) above, are fixed until 2006, after Wireless. The costs of such
which they will be subject to review by telecommunications are highly
the Government and the representatives competitive and are lower than in the
of the Industry. vast majority of jurisdictions, which
provide a home for internet gaming.
(e) Operators are entitled to a maximum
cap of US$50,000.00 per month on taxes
and the Commissioner of Inland

15


6. ESTABLISHMENT OF
BUSINESSES Antigua and Barbuda separated its
commercial registry from the country’s
high court in 2005, reducing the time to
start a business by 10 days, from 31 to
6.1 Right to Private Ownership 21 days. It also cut the corporate income
tax from 35 percent to 30 percent.
In Antigua & Barbuda the entrepreneur
needs 26 days from start to finish to An entrepreneur in Antigua and Barbuda
transfer the title on a piece of property. spends 12.5 percent of the country’s
income per capita to start up a business.
In June 1995, the government introduced
a permanent residence scheme to In Antigua and Barbuda, the costs to
encourage a limited number of high net- register a property add up to 13.0 percent
worth individuals to establish tax of property value. However, registry
residency tax in Antigua and Barbuda. records are fully digitized, leading to
As residents all their income would be efficient property registration, which is
free of local tax. associated with greater access to land
and finance.
To obtain a permanent residence
certificate an applicant must: maintain a A number of international banks have a
permanent place of abode in Antigua and presence in the country, including
Barbuda; obtain an alien landholding Barclays International Ltd, Royal Bank
licence costing five percent of the of Canada, Bank of Nova Scotia and the
property value; pay a purchaser's stamp Canadian Imperial Bank of Commerce.
duty of 2.50 percent; pay an annual levy There are also two locally owned banks -
of US$20,000/annum; reside in Antigua the Antigua Commercial Bank and the
and Barbuda for not less than 30 days a Antigua and Barbuda Investment Bank.
year.16
A number of local and international
insurance companies also offer a range
6.1 Establishing an Office of insurance services. 17

Foreign or local individuals may 6.3 Work Permit Requirements
establish: sole proprietorships;
partnerships; corporations; joint Persons seeking employment cannot
ventures; and branches of foreign apply for a work permit. Employers
corporations. Businesses are generally must advertise vacancies locally. If no
required to obtain an annual business suitable candidates are located locally,
licence. the employer has to apply for a work
permit for a foreigner to the

16 17

http://www.ab.gov.ag/gov_v2/business/permane http://www.ab.gov.ag/gov_v2/business/financiali
ntresidence.html nstitutions.html

16


Commissioner of Labour, Ministry of
Labour, St John’s, Antigua.

6.4 Intellectual Property Rights

Under current legislation, patent, trade
mark and industrial designs are protected
in Antigua and Barbuda if they are
registered in the United Kingdom.

As regards the efficiency of contract
enforcement, in Antigua and Barbuda it
takes 297 days from the time a claim is
submitted until a judgment is enforced.

Antigua and Barbuda is among the
global best performers in terms of cost
of going through bankruptcy, where the
cost of bankruptcy proceedings amounts
to one percent of the value of the estate.

6.5 Conversion and Transfer Policies

In order to facilitate the provision of
service and movement and
establishment, provision is made for the
removal of exchange controls by
member states. The Members of the
OECS, which includes Antigua &
Barbuda, maintain that their foreign
exchange system is fully liberalized.

17


7. CULTURAL
PRACTICES 1. Valid passport (with minimum life of
six months)

7.1 Business Customs 2. One completed application form

3. Confirmation of travel (return or
Commercial: 8:00-12:00,1:00-4:00 p.m. onward ticket or letter confirming date
Monday-Friday (closed on Thursday of travel from travel agent)
afternoon).
Government: 8:00 am – 4:30 p.m. 4. Confirmation of accommodation or
letter of invitation if you are staying in
the community with friends or family

7.2 Entry/Exit Requirements: 5. 1 x passport-size photograph

6. Visa fees: Single Entry £30.00 (for a
Most European Union citizens do not single visit within three months of date
require a visa to enter Antigua and of issue) or Multiple Entry £40.00 (for
Barbuda on holiday or business. Persons multiple visits within six months of date
visiting are permitted to stay as long as of issue)
their business takes, provided that:
Fees should be in postal orders or an
a) this is no longer than six months; international money order made payable
b) they have an onward or return ticket; to “Antigua and Barbuda High
c) they have confirmation of Commission” or exact cash (when
accommodation; delivering in person). Please add an
d) they can produce evidence of their extra £5.00 for registered post if the
ability to maintain themselves in passport is to be mailed. Processing
Antigua and Barbuda period for the issue of a visa is normally
three to five working days.
Cruise ship visitors who would normally
require a visa would not require one Taxes:
provided that they arrive in Antigua and Antigua & Barbuda has a US$20 pp
Barbuda in the morning and depart the airport departure tax, a room tax of 8.5
same evening. percent and service charge of 10
percent.18
‘Intransit’ passengers travelling within
the same day, who normally require a
visa, do not need a visa for entry into
Antigua and Barbuda, provided that they
have proof of their onward journey.
18
http://www.antigua-
Documentation required when applying barbuda.com/travel_tourism/information/passpor
for a visa: t_visa.asp

18

Doing Business with Antigua & Barbuda

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