Dear Editor,
I asked a bank in Antigua to open a business account. The business is well known since many years. I got the requirements by email and was stunned by the extensive list.
So I contacted a bank in USA to compare what I need to open a business account in USA if I had a business there:
Requirements to open a business account at a bank in USA:
- Employer Identification Number (EIN) (or a Social Security number, if you’re a sole proprietorship)
- Your business’s formation documents
- Ownership agreements
- Business licence
Requirements to open a business account at a bank in Antigua:
- Certificate of incorporation/registration documents from Intellectual Properties
- Registration document from Inland Revenue re: Enterprise Report
- Articles of incorporation and by-laws, ormemorandum and articles of association
- Notice of secretary
- Notice of directors
- Current certificate of good standing, if business has been operating for over one year
- Company ownership – list of names, addresses and nationality of beneficial shareholders, if applicable and management officers
- Financial reports (may include business plan, along with projected cash flow statement)
- Current passport identification, second picture ID and utility bill or other bank statement within three months for verification of address of principal owners, directors, beneficiaries and management officers
- Bank reference from current bank for all signatories, directors and beneficial shareholders
Why do Antiguan banks put up all these obstacles for businesses? It’s utterly nonsense.
I think this needs to be highlighted. Especially since the government praises entrepreneurs and businesses, and wants more companies established in this country.
Example: A retired European couple buys a house for US$400,000 and spend four to five weeks per year in their Caribbean house. They are granted two citizenships.
On the other hand, a European guy (me) buys an Antiguan company for far more than US$400,000. That company employs 18 Antiguans. The company is paying Social Security, Medical Benefits and Education Levy for all staff, and also collects over US$200,000 in ABST for the government.
The owner is not granted anything. Instead he has to pay EC$10,000 per year for a work permit, to be allowed to work in the company that he owns.
Frustrated business owner
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