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Nikita Veremeev
04.11.2025 | 6 min read
Updated: 15.10.2026
For years, Montserrat was presented as one of the offshore jurisdictions where an international business company paid almost no tax. That picture is out of date. From 1 January 2019, a Montserrat IBC was taxed like other companies. Since 1 April 2024, new companies have been formed under the Companies Act 2023, and the IBC is no longer available.
Montserrat IBC (International Business Company) was a company incorporated under the International Business Companies Act. This article explains what changed in 2019 and 2024, what happened to existing IBCs and which rules a Montserrat company follows in 2026.
Under the IBC Act, such a company could not carry on business with persons resident in Montserrat or accept banking deposits or insurance contracts from them. It also could not own real property in Montserrat, apart from an office lease. These limits made the IBC a company for business outside the island.
What the Montserrat IBC offered before the reforms
Until 2019, an IBC paid an annual licence fee to the Registrar. Instead of the fee, it could elect to pay corporate tax of 1.75% of its net profit for a calendar year. Dividends, interest, royalties and other amounts it paid to non-residents were exempt from income tax. The Act set this exemption for not less than 25 years from incorporation.
The revised edition of the IBC Act that shows the law as at 1 January 2019 still prints this old wording. The 1.75% rate also still appears in some guides. An amending Act of 2018 replaced it with effect from that same date.
The 2019 tax reform: the end of the IBC exemption
On 18 December 2018, the Legislative Assembly of Montserrat passed two amending Acts, both in force from 1 January 2019. The Income and Corporation Tax (Amendment) Act 2018 was enacted to eliminate the income tax exemption for international business companies. The International Business Companies (Amendment) Act 2018 deleted the tax exemption from the IBC Act.
What the 2018 Acts changed for an IBC
After the reform, an IBC still paid the annual licence fee to the Registrar. In addition, it paid income tax at the rate and in the manner set by the Income and Corporation Tax Act. It also delivered an annual income tax return to the Comptroller of Inland Revenue. The option to pay 1.75% instead of the fee disappeared from the text.
The amended tax law treats an IBC as ordinarily resident and domiciled in Montserrat. The Income and Corporation Tax Act charges tax on income from Montserrat or elsewhere. Its rate for companies is 30%.
At the same time, it is important to consider the impact of international tax transparency standards: CRS and FATCA. COREDO's experience shows that competent structuring and support allow compliance with the requirements of automatic exchange of information, minimizing risks to the business and maintaining the company's reputation at the international level.
A structure built on the old figures therefore needs a new tax analysis. If the goal is a low-tax holding, compare company registration in other jurisdictions before deciding.
Tax on payments to non-residents
The exemption for dividends, interest and royalties paid to non-residents was part of the deleted provision. Today the Income and Corporation Tax Act requires tax to be deducted at 15% from dividends paid to a non-resident. Interest, royalties and other listed payments to non-residents are subject to deduction at 20%, except rent for immovable property.
For owners who used an IBC for long-term planning, this changes the economics of the whole structure.
Companies Act 2023: what happened to the IBC
The Companies Act 2023 came into force on 1 April 2024. It repeals the former company laws of Montserrat, including the International Business Companies Act. From that date, the provisions of the IBC Act on incorporation and registration were repealed. The rest of that Act was repealed at the end of a six-month transition period.
What does this mean for an existing IBC and for anyone planning a new company?
Re-registration of existing IBCs
During the transition period, an IBC could apply to re-register under the new Act. The application had to include:
- articles of incorporation that comply with the Companies Act 2023;
- a document signed by the registered agent consenting to act for the company;
- for an IBC whose memorandum allowed bearer shares, a declaration that no bearer shares were in issue.
At the end of the transition period, every company still on the IBC Register was deemed re-registered as a company limited by shares. Within two months, it had to appoint an eligible registered agent. If the rules on persons with significant control apply to it, it also had to file their details in the same period.
Records and reporting of a Montserrat company
A company must keep financial records that show and explain its transactions and its financial position. These records are kept for at least seven years. Every company sends the Registrar an annual return by 1 April each year. Large and public companies also prepare and file financial statements. Other companies may decide not to appoint an auditor, but only with the consent of all members.
The solution implemented by COREDO for one client made it possible to fully automate corporate governance processes by integrating electronic document flow and compliance control systems. This increased transparency and reduced the risk of operational errors.
Legal support for a Montserrat company
Against the backdrop of tightening international compliance standards, correct implementation of KYC/AML procedures becomes a key element. At COREDO we build comprehensive support, including:
- Identification of beneficiaries and verification of sources of funds.
- Development and implementation of internal AML policies.
- Staff training and compliance audit with international standards (CRS, FATCA).
This approach minimizes legal risks of offshore structures and ensures the long-term resilience of the business.
Who Should Consider Montserrat in 2026
Montserrat no longer offers a tax-exempt IBC. A company formed there today is an ordinary company under the Companies Act 2023 and pays tax under the Income and Corporation Tax Act. It suits a business with a real reason to be in Montserrat. It also concerns owners of former IBCs, who must keep their companies compliant.
In the Council conclusions of 9 October 2026, Montserrat is named in neither annex of the EU list of non-cooperative jurisdictions for tax purposes. This status does not replace a tax review of a specific structure.
Montserrat after the reforms: the basic rules
Companies are registered by the Companies and Intellectual Property Office, whose functions the Financial Services Commission administers. The Commission is an independent statutory body established in 2001. Company registration can be completed online through the CIPO portal.
A company needs at least one member, and a company that is not public needs at least one director. Its business and affairs are managed by, or under the direction or supervision of, the directors, so company management rests with the board. Shares have no nominal or par value.
Registered agent for international business
Every company has a registered agent in Montserrat. A company that carries on business outside Montserrat must, as a rule, appoint a licensed company manager as its agent. Large and public companies need one in any case. Other companies may instead appoint a director who lives in Montserrat.
For clients focused on international trade, we develop comprehensive solutions that take into account the specifics of export-import operations, licensing requirements and international tax compliance.
Risks of using a Montserrat company
The main risk is planning on the basis of the old rules. Guides that still quote the 1.75% rate, bearer shares or the tax exemption describe the law before 2019 or before 2024. Bearer shares can no longer be issued. A nominee shareholder must tell the company for whom it holds the shares.
The COREDO team has implemented a number of risk management projects, including AML legal support, building transparent corporate structures and regular audits of compliance with international standards. This approach helps minimize tax and legal risks and maintain business resilience in the long term.
Registration and operation of a Montserrat company
A new company is formed under the Companies Act 2023, not as an IBC. The application names the proposed registered agent. Once satisfied, the Registrar registers the documents, issues a certificate of incorporation and enters the members and directors.
Choosing a registered agent and legal partner
The key factor for success is choosing a reliable registered agent and legal partner. Criteria to consider:
- Deep knowledge of Montserrat corporate law and international compliance standards.
- Experience supporting transactions in Europe, Asia and the CIS.
- A comprehensive approach: registration, ongoing support, AML and KYC services.
COREDO's practice shows: integrating legal and financial support not only reduces risks but also increases the efficiency of management of assets.
Persons with significant control
A company covered by these rules files a notice on its persons with significant control no more than 14 days after incorporation, with verification evidence. Such a person is an individual who, for example, holds more than 25% of the shares or votes or can appoint most of the directors. The Registrar enters the information in the PSC Register.
Information prescribed as confidential and the verification evidence are protected. The Commission may disclose them only through the gateways set by the Act, for example to the Financial Intelligence Unit. At COREDO we have successfully implemented projects to establish trust structures that not only protect assets but also build an effective system of fiduciary management.
At COREDO we have repeatedly encountered requests for maximum protection of beneficiary information. The solution developed by our team allows building a structure using trusts and nominee services, fully compliant with international AML and KYC standards, while ensuring a high level of privacy.
Business support after registration: compliance and reporting
After registration, it is important to keep corporate documents up to date, meet the filing deadlines and monitor changes in Montserrat and international law.
COREDO's solutions include:
- Post-registration support and updating of corporate documents.
- Implementation of business process automation systems.
- Strategic planning for scaling business through offshore structures.
This approach ensures not only compliance with regulators' requirements but also sustainable business development in international markets.
Key takeaways and recommendations for businesses
The Montserrat IBC regime ended in two steps: the tax exemption in 2019 and the IBC itself in 2024. Today Montserrat offers an ordinary company under the Companies Act 2023, taxed under the Income and Corporation Tax Act.
For the owner of a former IBC or a new project, the following steps help:
- Check that the company has been re-registered and that its registered agent is eligible.
- File the annual return by 1 April and keep financial records for at least seven years.
- File the details of persons with significant control and update them when owners change.
- Review the tax position under the Income and Corporation Tax Act, not under the old 1.75% rate.
The COREDO team is ready to become your long-term partner, providing not only registration but comprehensive support at all stages of international business development.
Frequently asked questions about Montserrat IBC
| Question | Short answer |
|---|---|
| Can a new IBC still be registered in Montserrat? | No. Since 1 April 2024, companies have been formed under the Companies Act 2023. |
| What are the tax obligations of a Montserrat company? | Income tax under the Income and Corporation Tax Act at the company rate of 30%. The IBC exemption ended on 1 January 2019. |
| What are the requirements for the management structure of a Montserrat company? | At least one member and, if the company is not public, at least one director. |
| How is a company registered in Montserrat today? | Under the Companies Act 2023, online through the CIPO portal, with the proposed registered agent named in the application. |
| What risks and limitations exist when using a Montserrat company? | Taxation in Montserrat, compliance requirements, filings on persons with significant control and annual returns. |
| Are bearer shares and nominee shareholders allowed? | Bearer shares cannot be issued. A nominee shareholder must notify the company of the person for whom it holds the shares. |
| What happened to existing IBCs? | At the end of the transition period, IBCs still on the register were deemed re-registered as companies limited by shares. |
| Who sees information on persons with significant control? | It is filed with the Registrar. Information prescribed as confidential is disclosed only through the gateways set by the Act. |
| What is the role of the registered agent when creating a company in Montserrat? | Every company has one. A company doing business outside Montserrat, as a rule, needs a licensed company manager. |
| Is Montserrat on the EU list of non-cooperative jurisdictions? | In the Council conclusions of 9 October 2026, Montserrat is named in neither annex of the list. |
If you hold a former Montserrat IBC or are considering a company in Montserrat, the COREDO team is ready to share practical experience and offer individualized support at every stage.