CORPORATE SERVICES

The International Business Corporations Act establishes the legal framework for the operation of offshore banking business within Antigua and Barbuda. A banking license must first be obtained from the Supervisor of banking and Trust Corporations before commencing banking operations.

BANKING ACTIVITIES

An offshore bank may engage in any generally acceptable banking activities from within Antigua and Barbuda and elsewhere, but it shall not knowingly accept deposits in the legal tender of a country of the Caricom region.

Offshore banking is the business of:

(a) receiving foreign funds through

(i) acceptance of foreign money deposits payable upon demand or after a fixed period or after notice
(ii) sale or placement of foreign bonds, certificates, notes or other debt obligation or other foreign money securities, or
(iii) any similar activity involving foreign money or foreign securities

(b) using foreign funds acquired under (a) to finance

(i) loans, advances and investments
(ii) activities of the person carrying on the business

CAPITAL REQUIREMENTS

A minimum paid up capital of US$5,000,000 is required. These funds must be paid into a bank in Antigua or major international bank overseas prior to the authorities issuing an international banking licensing.

An offshore bank is not subject to any reserve requirements as specified under the Banking Act which regulates the operation of local banks.

FORMATION AND LICENSING

Any individual, international company or banking corporation desirous of setting up an offshore bank in Antigua must obtain a license under the International Business Corporation Act. The application for a banking license must include the following:

	Name and address of proposed banking corporation
	Number of common and preferred shares, if any
	Amount of capital of the bank
	Names and addresses of all shareholders, directors and officers
	Biographical information for each director, officer and subscriber to five percent (5%) or more of the banking corporations share capital.

The process of licensing and incorporation is usually completed with one (1) month. Financial statements of the banking corporation must be submitted before approval is granted.

DIRECTORS

An international banking corporation must have at least one director and a director need not to be a natural person. At least one director must be a citizen and resident of Antigua and Barbuda or corporation licensed under the Act..

REPORTING

Under the International Business Corporations Act an offshore bank must submit a quarterly return providing an analysis of customers liabilities in respect of loans, advances and other assets and a statement of assets and liabilities. The quarterly return must be submitted no later than twenty one (21) days after the end of the quarter to which it relates. The quarterly returns are consolidated and published in the official gazette.

Annual audited financial statements must be submitted to the Supervisor of Banks and Trust Corporations within six (6) months of the corporation's year end.

CORPORATE MOBILITY

The legislation governing the operation of international business corporations allows for companies to be re-domiciled both inwards and outwards.

INCENTIVES

Incentives to offshore banking are as follows:

	The banking corporation is exempted form the payment of all taxes for a period of fifty (50) years
	The income, profits, gains and other revenues and the funds and securities of an exempt corporation are exempt from exchange control regulations unless the exempt corporation is a resident.
	Confidentiality - under the legislation it is a criminal offense to disclose any information pertaining to the affairs or transaction of client of a bank. Disclosure of confidential information can only be made by a court order arising from an authorized investigation.

GOVERNMENT FEES

Fees charged by the government in respect of an International Banking Business are as follows:

	US$
Initial License Fee:	15,000
Annual License Fee:	15,000
Incorporation:	300

KPMG SERVICES

KPMG Peat Marwick through its affiliated companies Offshore Company Services Limited and KPMG Peat Marwick Corporate Services Ltd. provides a wide range of local, international and offshore financial services and currently offers the following range of services:

1. Incorporation
   
   

   	Name Clearance
   	Reservation of Name
   	Preparation and filing of articles of incorporation
   	Preparation of incorporation charter
   	Obtaining Certificate of Incorporation

   
   

2. Corporate Secretarial Advisory Services
   Company Set Up & Annual Maintenance Cost
   KPMG Peat Marwick through its affiliated companies can facilitate the setting up of the company, that is:
   
   

   	Preparation of by-laws;
   	Attendance at the organizational meeting of the directors;
   	Preparation of the resolution in writing of the directors in lieu of an organizational meeting;
   	Preparation of share certificates;
   	Preparation of a register of shareholder(s);
   	Preparation of a register of the directors;
   	Opening of bank accounts;
   	Provision of registered agent;
   	Provision of registered office;
   	Maintenance of corporate records;
   	Attendance at the annual meetings of the shareholders;
   	Renewal of the company's IBC registration.

PROFESSION FEES

Our fees are based on the time spent and level of staff involved. It has been our experience that the time taken to complete this type of engagement can vary widely depending on the level of staff involvement required of our office. We would provide you upon request with a fee estimate based on the precise nature of your requirements.

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