A small developing country, Antigua & Barbuda is located in the Caribbean. The islands are most popular for their warm welcoming people surrounded by the pink, white-sandy seashores, perfectly clear waters. The pleasant climate with a beautiful beach blows your mind away and you feel relaxed!
Starting a business in this island country can bring you a huge percentage of profits because many investors and companies are eager to partner up with you.
|Benefits of a Business in Antigua & Barbuda||Drawbacks of a Business in Antigua & Barbuda|
|Office Hours are Monday to Friday from 8 am to 5 pm||Incorporation fee is quite high|
|1.5 billion GDP||Additional licensing costs|
|Tourism is at its peak||Naming your business can be a lengthy process|
Advantages of Starting a Business In Antigua & Barbuda
- Tax Rates are Better Than Most Countries
Starting a business here can help you immensely. Normally, when you try to propose the idea of a business to other countries, the paperwork related to taxes is time-consuming. Antigua & Barbuda has a unique tax provision system that helps foreign businesses.
The International Business Corporation excludes the income tax, capital tax, and sales tax to help your enterprise run smoothly. The IBC is not required to pay taxes for 50 years. They also don’t need to file tax returns.
So if you’re looking for a hassle-free country to start up your business, Antigua & Barbuda is definitely a great choice.
- All Business Operation Costs are Low
Having a business requires you an office where all the business activities can be carried out without any interruption. You will need a proper setup for meetings with different investors, shareholders, and clients.
You need to have a healthy and clean office according to every country’s law and order. This means you will have to recruit or rent out local workers to help you keep your office topnotch!
The rates for these services are comparatively lower than other nations.
- Speed of Work is Impeccable
As a businessman or businesswoman, there are certain business dealings or meetings and activities that keep you busy and stressed. Paperwork or other document work might annoy you if it is very slow and half-heartedly worked on.
Antigua & Barbuda has you covered here since the speed with which they work is just astonishing! It takes less than 24hrs to incorporate a business or company here. The director of the company need not be from this nation, you can choose whoever you want. You only need one shareholder and the name of the shareholder for your company remains hidden since they believe in privacy and respect it too.
- Import and Exports are Vital in Antigua & Barbuda
Since Antigua & Barbuda is an island country, they are extremely dependent upon the shipping of goods and services to other nations. The net GDP rate for imported goods is at 11% and the minimum tariff rate for these imported goods and services is at 9.7%.
The imported goods include machinery, chemicals and oil, food and live animals, and much more. Exporting goods may include electronic equipment, petroleum, bedding, handicrafts, and so on so forth.
The main partners for import and export are the USA, Canada, UK, and CARICOM countries.
- Progressive Economy
To boost the development of the nation economically, the government is always delighted to welcome foreign investors and local investors to choose Antigua & Barbuda for businesses.
The government supports these businesses and companies through the Antigua and Barbuda Investment Authority or ABIA. They offer services for monitoring all the business activities of existing business ventures and investors.
ABIA gives more importance to institutions and facilities for investment and investors. Antigua & Barbuda have the 29th ranking globally under the category of “ Protective Investors” as it is a suitable country for foreign investors and business owners.
- Proper Supply of Electricity and Power
If you are running a business that needs a good amount of electricity and power usage, Antigua & Barbuda will help you in every way so that you have a smooth business. The electricity is directly extracted from fossil fuels. Petroleum is mainly used for transport and production of electricity.
The Antigua Power Company Ltd or APCL, a privately owned company is responsible for the supply of electricity in and around the country. The Antigua Public Utility Authority purchases electricity through APCL for distribution and power generation.
Contribution to the primary energy demand is mostly under the responsibility of the residential sector of Antigua & Barbuda.
- Insurance and Reinsurance Agreements are Hasslefree
As a business owner, one needs to have insurance in case there is a crisis or problem. Sometimes the reinsurance may become time consuming and lengthy.
The International Business Corporation Act of 1982 provides offshore banking so that foreign investors can keep working in Antigua & Barbuda. The country has more than 100 insurance companies that are fully licensed since 2004.
The income rate is between 4% to 7% depending on the GDP of Antigua & Barbuda.
Disadvantages of Starting a Business in Antigua & Barbuda
- Advertising and Marketing is Limited
Marketing and advertising help in the outreach and recognition of your company or business globally. Even though investors will be interested, the reach for other industries here is very limited.
This implies that Antigua & Barbuda’s advertising is mostly focused on tourism and local institutions. There is a very limited scope for other industries to flourish smoothly without high levels of advertisement. This is because tourism promotion is very dominant.
The sales and marketing teams are entirely focused on importing and exporting all goods and services since Antigua & Barbuda is an island country. Thus, for businesses that have a unique product or outlook may face difficulties.
- Small Manufacturing Sector
For a business that gains profits from all manufacturing sectors of each and every country, Antigua & Barbuda’s sector of manufacturing is very small in size. There is very little scope for businesses to flourish that manufacture certain items or products.
The manufacturing sector only makes up 1.85% of the total GDP rate.
- High Labour Cost
A very successful business has people working behind it. They give their blood and sweat to make everything easy for the customers and clients.
But in Antigua & Barbuda, it can be a devil in disguise because the labor cost is very high. This factor is a direct result of no successful and flourishing industries other than tourism industries.
Foreign investors may drop you from a business deal if they have to pay a hefty amount for just the labor and move onto other countries.
- No Direct Sources of Minerals/Gas
Antigua & Barbuda does not have any mining industry commercially. They are the largest sand mining industry since historic times but sand quarrying has proven to be harmful and dangerous for the sustainability of the island.
The country has limited export of limestones or clay. They depend on imported oil and natural gases for the generation of electricity.
- Inefficiency Water Sanitation
Clean water is used for everything. You need to be healthy and strong to keep a business running. You need to drink water that is purified and cook with water that is not from the taps no matter what.
As an island country, you’d think Antigua & Barbuda has proper water sanitation facilities. Unfortunately, you need to be aware and keep napkins or sanitizers with you due to the polluted waters.
The beach water is tremendously unhygienic and prone to waterborne diseases. This is because there is regular disposal of human waste and insufficient drainage systems.
Tap water was considered safe but if you are not used to it, you may become ill and bottled water is expensive.