How to Register a Sole Proprietorship (Sole Trader) in Antigua and Barbuda

Operating as an independent contractor or solo entrepreneur in Antigua and Barbuda is a practical option for those who want to set up a business quickly and with minimal expense. The country offers a straightforward registration process that allows individuals to work independently, manage their own income, and avoid the heavier compliance requirements of a company structure.

Although the steps are relatively clear, there are still important formalities. You must register a business name if you operate under anything other than your personal name, obtain a Tax Identification Number (TIN), and register for Antigua and Barbuda Sales Tax (ABST) once your revenue exceeds the legal threshold. Certain sectors may also require specific licences, making it essential to confirm your obligations before starting operations.

The main challenges for sole proprietors are staying compliant with tax filings, maintaining proper business records, and managing the risks of unlimited personal liability. At the same time, the benefits include fast setup, lower startup costs, and the freedom to operate on your own terms.

Disclaimer: This article is for informational purposes only and is not a substitute for legal advice. Please always check official sources or seek professional guidance before taking action.

What is a sole proprietorship in Antigua and Barbuda?

In Antigua and Barbuda, there is no distinct legal entity separate from the owner. The business is registered under a business name (if you trade under something other than your personal name). The structure is often called a sole trader or sole proprietorship. The same person owns and manages the business and bears all legal responsibility.

How does a sole proprietorship (sole trader) work in Antigua and Barbuda?

Sole trader vs. other business structures in Antigua and Barbuda

There are alternatives to setting up as a sole trader in Antigua and Barbuda. Many entrepreneurs choose to form a limited company if they want stronger liability protection, access to investment, or a more formal corporate structure. Below is a comparison of the sole proprietorship model with a limited company, which is the most common alternative.

Step-by-step guide: How to register a sole proprietorship in Antigua and Barbuda

Step 1: Check your eligibility

You must be a natural person (an individual). There is currently no formal restriction against foreign nationals operating a sole proprietorship, but you should verify immigration or local permit requirements depending on your status.

Step 2: Choose your business name

If you will trade under a name other than your full legal name, you need to register a business name with ABIPCO. Check name availability via the Search the Register service on the ABIPCO website. You cannot include words like “Limited,” “Corporation,” or similar. Name registration must happen within 14 days of commencing business if your trading name is different from your own name.

Step 3: Gather required documents

You will typically need:

• A valid government-issued photo identification (passport or national ID)
• Proof of address (utility bill or lease agreement)
• Completed Name Reservation / Name Application Form from ABIPCO
• Statement of Particulars (to record business name details)
• Any local licenses required for your activity (trade licence, sector permits)

Step 4: Register with ABIPCO

Submit your name reservation application and business name registration in person at the ABIPCO in St. John’s. While the required forms—such as the Name Search / Name Reservation Form—can be downloaded from ABIPCO’s Companies Forms section, they must be physically submitted along with your supporting documents and the registration fee. Once accepted, ABIPCO will process your application and issue a Business Registration Certificate together with the official Statement of Particulars.

Step 5: Pay registration fees and contributions

Once your application has been approved, you will need to pay the official registration fee. The cost of registering a business name is $100 (EC) as set out by the ABIPCO. This fee applies whether you are registering a new business name or updating existing particulars under the Business Names Act. While there is no requirement to obtain a business stamp, some entrepreneurs choose to purchase one for professional use, though this is optional and priced separately by private providers. Depending on your industry, you may also need to budget for additional trade licences or sector-specific permits, each with its own fee structure.

Step 6: Complete post-registration obligations

After registration, your responsibilities do not end there. You will need to register with the Inland Revenue Department (IRD) for a TIN and submit regular returns. If your annual revenue exceeds $300,000, you must register for the ABST and begin filing monthly returns at the 15% rate. In addition, sole proprietors are expected to keep proper records, comply with the Unincorporated Business Tax regime, and register with relevant authorities, such as social security or medical benefits, if they hire staff. Meeting these obligations is essential to remaining compliant and avoiding penalties.

Financial and tax obligations for sole proprietors in Antigua and Barbuda

You are responsible for:

• Unincorporated Business Tax (UBT): Sole proprietors pay a flat 25% UBT on net business profits, rather than personal income tax (which was abolished in 2016). Returns are filed annually using Form F15 with the IRD.
• Sales tax (ABST): If your annual turnover exceeds $300,000, you must register for ABST. The standard rate is 15%, though some sectors, like hospitality, apply reduced rates (14%). Returns are filed monthly through the IRD.
• Social security contributions (if employing staff): While self-employed individuals are not automatically required to contribute, employers must register with the Social Security Board and contribute approximately 6–9% of employee wages, while employees contribute 4–6%.
• Record-keeping: Maintain accurate records of income, expenses, receipts, and invoices. These records must support your UBT and ABST filings and should be retained for several years in case of inspection.
• Invoicing: All invoices should include your TIN, business and client details, invoice date, description of goods or services, amounts charged, and ABST (if applicable). Invoices must be sequentially numbered and kept in your records.

Launch your contracting career and stay compliant with Deel

Registering as a sole proprietor gives you independence, but it also means handling taxes, invoices, and records on your own. Deel’s all-in-one platform helps you manage obligations without the stress. With Deel, you can:

• Automate invoicing and expense tracking with essential Bookkeeping tools
• Create, send, and sign localised work agreements
• Keep accurate records for tax season
• Access expert tax advice and compliance support
• Get paid through multiple payment and withdrawal methods
• Spend your earnings in USD with the Deel Card
• Access funds early with Deel Advance
• Enjoy contractor perks from 150+ partners

Stay independent, without the admin overload. Sign up to Deel for free today.

FAQs

What is the minimum capital required to start a sole proprietorship in Antigua and Barbuda?
There is no formal minimum capital required to register a sole proprietor.

Do sole proprietors need to register for ABST?
Yes, if your annual taxable supplies exceed $300,000 (EC), you must register for ABST at a 15% rate and file monthly returns.

How much are the standard registration fees?
Business name registration costs $100 (EC) as set by the ABIPCO. While some entrepreneurs also choose to purchase a business stamp for professional purposes, this is optional and supplied by private vendors at varying prices.

Can a sole proprietor hire employees?
Yes. If you hire employees, you must register with the Social Security Board, withhold income tax, and contribute to employee benefits.

How long does it take to register?
Name registration can be processed in about one day, while full registration typically takes 2–5 working days.

Can foreign nationals register as sole traders?
Yes. There are no explicit restrictions, but foreign nationals must comply with immigration, work permit, or residency requirements.

Do sole proprietors need a separate business bank account?
It is not legally required, but it is strongly recommended for clearer accounting and separation of personal and business finances.

What happens if I stop operating?
You must deregister your business name with ABIPCO, inform the IRD, and settle any outstanding tax obligations, including final UBT or ABST filings.

Are there government incentives or reduced rates for new sole proprietors?
There are no general incentives specific to new sole traders, though industry-specific programmes may exist. Always confirm with the IRD or development agencies.

Can I use Deel as a sole proprietor to get paid by international clients?
Yes. Deel enables sole proprietors and freelancers to receive payments from clients worldwide in multiple currencies with low fees and transparent exchange rates.

Does Deel generate compliant invoices for sole proprietors?
Yes. Deel automatically generates invoices that meet local and international tax requirements.

Can Deel help me with taxes as a sole proprietor in Antigua and Barbuda?
Yes. Deel provides downloadable tax reports and payment records you can use when filing returns, simplifying compliance.

Does Deel offer contracts for freelancers and sole proprietors?
Yes. Deel includes locally compliant contract templates to help you work safely with clients.

Can I access benefits through Deel as a sole proprietor?
Yes. Deel offers optional perks such as health insurance, retirement plans, and other benefits typically reserved for employees.