Corporate Law at Montserrat (BOT)
Montserrat, a British Overseas Territory in the Caribbean, offers a favorable business environment with competitive tax rates, straightforward company formation processes, and attractive incentives for international investors.
🏢 Business Entities in Montserrat
1. Limited Liability Company (LLC)
Ownership: Foreigners can fully own LLCs.
Liability: Shareholders' liability is limited to their capital contribution.
Management: Can be managed by one individual, who may also be a shareholder.
Taxation: Subject to standard corporate tax rates unless qualifying for specific incentives.(YB Case)
2. International Business Company (IBC)
Tax Benefits: Exempt from local taxes on income derived outside Montserrat, including income tax, capital gains tax, and withholding tax on dividends, interest, and royalties.
Confidentiality: Directors' and shareholders' names are not publicly accessible.
Structure: Requires a registered agent and office in Montserrat.
Reporting: Minimal reporting requirements; not required to file annual financial statements or undergo audits. (InvestCARICOM, InvestCARICOM)
📝 Company Registration Process
Choose Company Type: Decide between LLC or IBC based on business objectives.
Select Company Name: Ensure the name is unique and complies with Montserrat's naming regulations.
Prepare Documentation: Submit the Memorandum and Articles of Association to the Financial Services Commission (FSC).
Appoint Directors and Shareholders: Provide details; no residency requirements.
Pay Fees: Cover incorporation and annual renewal fees.
Obtain Certificate: Receive the Certificate of Incorporation from the FSC.(Tobias Nielsen, InvestCARICOM, InvestCARICOM)
The incorporation process is typically completed within a few days. (InvestCARICOM)
💰 Taxation Overview
Corporate Income Tax (CIT): 30% standard rate; reduced rates or tax holidays may apply for qualifying sectors.
Value Added Tax (VAT): 15% standard rate; businesses with annual turnover exceeding the VAT threshold must register and submit periodic VAT returns.
Withholding Tax:
Dividends: Exempt for residents; up to 15% for non-residents.
Interest: 15%.
Royalties: 15%.
Capital Gains Tax: 0%.
Wealth Taxes: 0%.
Inheritance Taxes: 0%.
Property Tax: Based on market value; rates range from 0.3% to 0.5%.
Stamp Duty: 2% to 10% on certain legal documents.
Import Duties: 5% to 25%, depending on the product. (privacyharbor.pro, Tobias Nielsen)
📌 Regulatory Authorities
Financial Services Commission (FSC): Oversees company registration and financial services.
Inland Revenue Department (IRD): Administers tax collection and compliance.
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