Montserrat: British Caribbean Simplicity

A small volcanic island in the Eastern Caribbean, Montserrat offers something increasingly rare: genuine simplicity. As a British Overseas Territory operating under English common law, this tiny jurisdiction provides straightforward offshore structures with high financial privacy, fast formation, and the stability of British administration.

Living in Montserrat

Life in Montserrat is defined by the volcano. The Soufrière Hills volcano erupted catastrophically in 1995, burying the former capital Plymouth. Today, the population of fewer than 5,000 lives in the northern "safe zone," creating perhaps the Caribbean's most intimate community.

English is official, and the British influence is evident throughout. Healthcare is basic, with serious issues requiring evacuation to Antigua or further afield. Safety is exceptional due to the small population and close community.

The cost of living is moderate by Caribbean standards, though imported goods carry typical island premiums.

Doing Business in Montserrat

Montserrat's business appeal lies in its straightforward offshore regime. International Business Companies (IBCs) benefit from 0% tax on income derived outside Montserrat, no capital gains tax, and no withholding tax. Local operations face a flat 20% rate.

The British Overseas Territory status provides legal stability under English common law. High financial privacy protections attract those seeking discretion, though Montserrat participates in international tax information exchange frameworks.

There is no VAT or sales tax. The Eastern Caribbean dollar is pegged to the US dollar.

Company Formation and Registration

Company formation is remarkably fast—typically completed within one week. The minimum capital requirement is modest at approximately USD 10,000.

IBCs must appoint a licensed registered agent and maintain a registered office on the island. Foreign ownership is permitted at 100% with no local director requirements.

Considerations

Banking is Montserrat's primary challenge. Limited financial infrastructure means most businesses using Montserrat structures bank elsewhere. The small island economy offers essentially no local market.

The volcanic risk is managed but real. The exclusion zone remains in place. Transportation is limited, with access primarily through Antigua.

For those seeking a simple offshore vehicle with British legal backing and minimal administrative burden, Montserrat delivers genuine value.