Company registration at Caribbeans

It makes sense to consider the Caribbean region not only in terms of tourism but also for entrepreneurial purposes. The region provides favorable conditions for starting and doing business worldwide, including low or no taxes. Many countries also offer the opportunity to obtain citizenship for investment, but the region has other advantages.

Advantages of registering a company in the Caribbean

The decision to open a company in the Caribbean should be considered along with the following advantages of the region:

• ease of incorporation and administration of companies in the Caribbean;
• the ability to set up an offshore and conduct business around the world under a simplified scheme;
• low cost of local workers;
• the possibility of obtaining a residence permit under a simplified plan;
• absence of currency control;
• high level of confidentiality of data on the owners of the business.

Forms of doing business in the Caribbean

Opening a company in the Caribbean islands is possible in the form of an international business company (IBC). It is a company whose participants have limited financial and legal responsibility for the results of the enterprise - only within the limits of the invested funds. Any individual or legal entity, regardless of nationality, can establish and own a share in an IBC. To manage the company, one director of any residency is required. In most cases, this can also be a legal entity. The formation of share capital in some countries will require a minimum of 50,000 U.S. dollars. Still, the legislation of most Caribbean countries does not specify a minimum amount of share capital. However, the company's capital must be commensurate with the activities the company plans to engage in. In addition, most Caribbean jurisdictions do not require share capital at the time of incorporation.

The process of registering a legal entity in the Caribbean region

It is possible to open a company in the Caribbean through a series of interrelated steps:

1. Selection of the types of activities that the future legal entity plans to carry out in the Caribbean.
2. Selection of a unique name (additionally - reservation).
3. Drawing up and executing constituent documents (memorandum, articles of association, participants' decision on the company foundation) and registration forms.
4. Search and registration of the official address for the future Caribbean legal entity.
5. Paying the registration fees and submitting the package of documents for registration.
6. Registration of the business to pay taxes and mandatory social contributions.
7. Opening of corporate bank accounts for the newly created business.
8. Obtaining additional permits and licenses (only required for certain activities).

Regulatory environment and specific aspects of taxation

The Caribbean has a favorable environment for doing business. As a result, the region's states are interested in attracting foreign investors and capital, simplifying the process for starting and administering a business in the Caribbean, and providing access to various citizenship programs. Citizenship in the Caribbean can be obtained by making a non-refundable contribution to the selected country's development fund, purchasing real estate, or registering a legal entity.

Simplified order of doing business is registering companies in the Caribbean without a personal visit online. The details of registration procedures vary from jurisdiction to jurisdiction. But in general, the incorporation process takes 2 to 10 days. After that, it is only necessary to draft the incorporation and apostille documents issued abroad.

Most business registries in the Caribbean are not public, which significantly increases the level of protection for foreign investors. However, certain regulated activities will require a license.

The company tax regime in the Caribbean provides for the payment of corporate tax on income earned within the jurisdiction. At the same time, income earned outside the jurisdiction is exempt from taxation. Consequently, there are no capital gains, gifts, or VAT taxes in the Caribbean.

How Prifinance lawyers can assist

• evaluate the background of the case and select the most appropriate jurisdiction in the Caribbean;
• collect and process all the information required to register a legal entity following the legal requirements;
• draw up and execute the incorporation and registration documents for the company;
• negotiate with all local authorities and banks;
• to provide comprehensive legal support in solving any issues that may arise in the course of further activities of the company in the Caribbean.

Prifinance lawyers have a successful experience of about 11,000 registration cases and would be happy to apply this experience to launch a new international business project. In addition, provide input for individual advice and suggestions.