Profile
Doing Business The post volcanic activity business environment is still in its infancy, but the legal and economic framework in place is very attractive for invest- ment from outside. The framework is built on sound investment policy which shows little if any distinction between local and foreign in- vestment. Incentives offered include tax holi- days, duty- free imports and the right to repatriate investment and profits.
Investors wishing to own land in Montserrat are required to obtain the requisite landholding license. The process and cost involved rank among the most favourable in the Eastern Caribbean. Persons wishing to invest in real es- tate would find that land prices are low com- pared to elsewhere. Prices will inevitably increase. The main business activities at present include commercial, corporate, real estate con- veyancing, banking, finance, insurance, em- ployment and construction ventures. There are stakeholders in the private sector working dili- gently on growth in the international banking, trust and international business companies sectors.
Establishing the Business
Preference is shown for incorporating busi- nesses through the use of private limited com- panies. The details concerning private limited companies are outlined in the Companies Act
Cap. 11.12 of the Laws of Montserrat. The Companies Act mirrors other company statutes in the Commonwealth Caribbean. The reform in company law in the Caribbean is due to the Report of the Working Party on Harmonization of Com- pany Law in the Caribbean Community (1979). Companies may be established in a period of
2-3 days. The Companies Act also makes pro- vision for registering existing business entities as external companies. The main responsibilities for management of
these companies surround the filing of Annual Returns by the first of April each year – a task easily undertaken by local representatives. Investment incentives for corporations include corporate and individual tax holidays, import duties and freedom in exchange control. A tax holiday of 5 to 10 years and periods up to 15 years maximum under certain circumstances are available. Export oriented businesses are eligible for tax rebates.
Immigration Foreign Investors engaged in any occupation in Montserrat for profit, reward or other remuner- ation require valid work permits. Investors who qualify for the grant of a permit of economic res- idence do not require work permits. An applicant for a permit of economic resi- dence must show that he (a) maintains a property
investment of at least EC$400,000.00 (b) main- tains a deposit of at least EC$400,000.00 at a local bank (c) holds Montserrat government se- curities valued at least EC$400,000.00. The spouse, child, stepchild or adopted child of the person granted a permit of economic res- idence is eligible for the grant of a permit of per- manent residence.
Real Estate
The island has traditionally set aside upscale res- idential subdivisions for foreigners wishing to purchase real property, but there is a license re- quirement. Investment in land outside the estab- lished subdivisions by foreign investors requires the added consent of the executive council. While such consent will not be unreasonably withheld, this is one area in which joint ventures with local partners are encouraged. International Business Companies (IBC’S) Montserrat enjoyed a booming offshore industry in the 1980’s. Significant steps have been taken over the years to regain confidence and foster growth in the offshore industry through compa- rable regulatory schemes. Recent partnerships between experienced entities in the offshore industry have introduced an unprecedented approach to encouraging in- direct investment through proliferation in the registration of IBC’s. As part of a two year lim- ited incentive package IBC’s are incorporated, and administered at rates as low as US$350.00. This rate is inclusive of providing nominal di- rectors and registered agents. The package does not however include the statutory registration fees and annual fees payable.
International Business Companies carry on business outside Montserrat without liability for corporate taxes. Although IBC’s are regulated by the Financial Services Commission they re- main untouched by the tax and financial regula- tions in place for private limited companies.
To find out more: Kharl MarkhamAllen Markham & Associates P.O. Box 1, 100 Banks Estate Montserrat, British West Indies Tel: 664-491-2498/2848 Fax: 664-491-2943 E-mail:
kmarkham@allenmarkham.com Website:
www.allenmarkham.com
Current Events A recent MOU between the Government and the UK Department for International Development (DFID) highlights the reforms necessary to at- tract private sector investment. Under the MOU the UK will provide justifiable increased capital and technical assistance once these policy re- forms are expedited to establish an ideal busi- ness environment.
The private and public sectors have joined hands; Montserrat is uniquely positioned and ideal for investment.
New European Economy 79
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124