Types of Companies

Anguilla Business Company (ABC)

An ABC is authorized to conduct business in Anguilla as well as elsewhere. It is exempt from the filing and reporting requirements of an Ordinary or Public Company and has the flexibility to function in conjunction with a trust created under the Trust Act 2000. It can also be adapted to function as a special purpose company.

Other useful features include:

Hybrid Company

The Companies Act allows for the formation a company that is limited by guarantee or both share and guarantee commonly referred to as a Hybrid Company. Because of these features, a hybrid company can effectively separates shareholders members from guarantor members and thus limit their respective rights so as to make the entity tax efficient. Accordingly, the hybrid company has the features of both a partnership and a company. This corporate vehicle has special attraction for clients from civil law which may not recognize common law trust concepts. For example, Civil law jurisdictions may view a transfer to a trust as no more than a transfer to an individual with consequential
adverse tax liabilities.

International Business Company (LBC)

The ease of incorporation and limited reporting requirements make the IBC an excellent corporate vehicle to conduct international business. However, an IBC can only do business in jurisdictions outside of Anguilla.

The attractive features on an IBC include:

Limited Liability Company (LLC)

The Anguilla LLC legislation is modeled after 1977 legislation Wyoming which created a legal entity that has some features of a company such as the capacity to sue and be sued, separate legal entity and the limited liability of its members and some of the features of a partnership. If properly designed under U.S Tax law only the members will be taxed unlike a company which is taxed both at the corporate and shareholder level. It is therefore commonly referred to as a "Pass Through" vehicle. One key and important difference between a company and an LLC is that an LLC is of limited duration.
The LLC is primarily to assist U.S. taxpayers in structuring their business to minimize their U.S. tax obligations.

Limited Partnership (LP)

A limited Partnership is a legal entity that restricts liability to the management. Investors on the other hand have their liability limited to their investment. This entity is useful in tax and trust structures.
useful in tax and trust structures.

Guarantee Company

A Guarantee company is a private limited company where the liability of a member is limited by a specific amount. The limitation of liability takes the form of a member guaranteeing to pay a nominal sum typically US$100.00.

This type of company often utilized for charitable, community and private organizations or club and is commonly referred to as "Not for profit" corporations. This means that the profits of the company are not distributed to its members.

Foundation

In 2008, Anguilla enacted foundation legislation which are modulled after the Liechtenstein model. The aim of the legislation is to provide a vehicle for clients from civil law jurisdictions which comply with private foundation concepts recognized in their jurisdictions. For example, common law jurisdictions have traditionally utilized trusts for estate planning purpose. However, trust is not recognized by Civil law jurisdictions. Thus transfers to a trust may be deemed to be a transfer to an individual with consequential adverse tax effects. This foundation legislation cures this problem.

The major features of a foundation are:

Protected Cell Companies (PCC)

In 2004, Anguilla enacted the protected cell company act which allowed a corporate entity to have separate "cells" which can function separately from each other. Moreover, the debt and or liabilities of one "cell" cannot be attributed to another "cell" without the express permission of the other cell owners. This is an attractive and useful feature for insurance/captive insurance companies, mutual funds and asset protection structures. However, PCC Companies are subject to specific licensing requirements. The license must be obtained prior to incorporation.

For information on the PCC licensing requirements please email us at aoml@axaoffshore.com.



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