Small Business Development

• A small business is an enterprise:
• that has no more than 25 employees;
•  that is not a wholly- or majority-owned business or a subsidiary of a larger company;
• in which capital investment does not exceed $3,000,000.
• for which total annual sales do not exceed $2,000,000; and
• that is majority owned
  • by citizens of Antigua and Barbuda, or
  • subject to subsection (2), by persons who are not citizens of Antigua and Barbuda. (Small Business Development Act 2007 Section 1)

(2) A small business that is majority-owned by persons who are not citizens of Antigua and Barbuda is not a business to which the Act applies unless:

• over one-half of the production of the business, calculated by value of the product, is exported.
• there is a minimum investment in the business of $500,000.
• at least 50% of the employees of the business are citizens of Antigua and Barbuda; and
• at least 40% of goods and services used for the production of the business is procured from businesses located in Antigua and Barbuda.

In 2007, the Antigua and Barbuda government enacted the Small Business Development Act, which introduced a new regime designed to facilitate the growth of the small business sector in Antigua and Barbuda.

The Act is an important instrument which is deliberately designed to elevate the concept of the “small business” in Antigua and Barbuda.

The Act provides a variety of incentives, technical assistance, and concessions to qualified small businesses. To qualify you must either have a registered business name under the Business Names Act (CAP. 63 ) or a Company under the Companies Act (1995).

At present, the Act is jointly administered between the Ministry of Legal Affairs, Antigua and Barbuda Intellectual Property Commerce Office and the Antigua and Barbuda Investment Authority (ABIA).

1. Obtain an Approved Small Business Application form (available at ABIA) and return the completed application to ABIA with the following:
   • Business Name Registration Certificate issued under the Business Names Registration Act or Certificate of Incorporation issued under the Companies Act.
   • Business Plan which includes Financial Statement of Accounts for the year immediately preceding the application (for businesses in operation for over one year) or a Projected Financial Statement of Accounts (for potential businesses or businesses in operation for less than one year.
2. Upon notification by ABIA of your approved status, pay a prescribed fee to Antigua and Barbuda Intellectual Property Commerce Office (ABIPCO) located in the Hewlett Building on St. John’s Street. ABIPCO will inform you when you may collect your Approved Small Business Certificate.
3. If you desire technical assistance or concessions, complete an Application for Technical Assistance and/or Application for Concessions (available at ABIA) and submit the same with your Approved Small Business Certificate to ABIA. ABIA will inform you if and when your request for technical assistance and/or concessions has been granted.
4. If you are desirous of accessing the Credit Guarantee Scheme, please contact the Antigua and Barbuda Development Bank at 462-0838.

• Exemption from or reduction of payment of duty on the importation or purchase of raw materials, building materials, furniture, furnishings, fixtures, fittings, appliances, tools, spare parts, plant, machinery and equipment for use in the construction and operation of the business.
• Exemption from or reduction of payment of duty on the importation or purchase of vehicles for use in the operation of the business.
• Exemption from or reduction of payment of duty on the importation or purchase of vehicles for use in the operation of the business.
• Reduction of property tax of up to 75% in respect of land and buildings used in the operation of the business.
• Exemption from or reduction of payment of income tax on the income of the business for a period not exceeding five years. After the end of the mentioned five-year period, a reduction of up to 10% of income tax payable on the income of the business for a specified period.
• Exemption from or reduction of payment of withholding tax for a period of up to three years from the grant of the concession.
• Exemption from or reduction of stamp duty on documents required for loans for the business or security for those loans.
• Reduction of stamp duty payable under the Non-Citizens Land Holdings Regulation Act, and of stamp duty payable by the purchaser/transferee, and by the vendor/transferor of up to 75% in respect of land and buildings other than residential premises used in the operation of the business.
• http://www.investantiguabarbuda.org/ is the Website for the Antigua and Barbuda Investment Authority. You may find this link on the ABIPCO website.

The Antigua and Barbuda Investment Authority can be found at:

P.O. Box 80, Sagicor Financial Center,

#9 Factory Road, St John’s, Antigua, W.I.

Telephone: 1-268-481-1000/1/2/3

Fax: 1-268-481-1020

Email: info-abia@ab.gov.ag