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REASONS TO INVEST IN BARBADOS ESTABLISHED INFRASTRUCTURE BARBADOS SEAPORT Barbados is 166 square miles, and has modern ports of entry
(airport and a sea port). The Barbados Seaport is one of the
most modern and top-rated seaports in the Caribbean.
Approximately 90% of the goods used in the manufacturing
and retail sectors enter the island via the Seaport.
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Communication Infrastructure Barbados' Telecommunications Service providers delivers
top level communications solutions. Our providers offer
market-leading video, broadband, telephony,
mobile services, data center hosting, domestic and
international managed network services to business and
government clients.
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Quality LifeStyle Senior professionals wishing to marry a quality lifestyle inclusive of a
strong family and social life with the stressors of demanding corporate
responsibilities generally find that Barbados is a perfect jurisdiction to
live and work. In fact the development of the international business
and financial services sector has enhanced the quantity and quality of
recreational activities offered in Barbados.
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Geographic Location BATTS ROCK, ST. JAMES Barbados is strategically located at 13 ̊ 10’ north of the Equator
and 59 ̊ 32’ west of the Prime Meridian making it the easternmost
island of the Lesser Antilles. The island is currently served by
scheduled international airlines with daily flights to Europe and
major cities in North America.
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Business Investors

Barbados is a high quality center for Global Business and is known as an important financial services center throughout the world.  The factors which contribute to Barbados’ continued growth in the financial sector include one of the highest degrees of political and social stability in the world, low rates of taxation, excellent communications, skilled expertise and a sensible regulatory environment.

The global financial services and global business sectors are the fastest-growing sectors of Barbados’ economy and are destined to lead the economy to this new millennium.  Our legislative initiatives, judicial system and high ethical standards make Barbados a preferred low tax destination for the international business community.

Barbados acknowledges that economic prosperity is increasingly based on the creation and exploitation of knowledge and that the current shift to knowledge-based economies is reflected in the externalization of certain activities by industrial firms.

What distinguishes Barbados from other jurisdictions is its relatively large pool of highly educated, motivated and trainable personnel, its reputation for quality, its network of tax and investment treaties and its lower operating costs.

Barbados offers a host of Investment Opportunities which include but are not limited to:

The activities of International Banks in Barbados are regulated by the International Financial Services Act Cap 325, and the International Financial Services (Amendment) Act, 2012 which replaced the Off-shore Banking Act.

To find out more about carrying out international banking business from Barbados, please visit: www.centralbank.org.bb

Contact:

Director of Bank Supervision
Central Bank of Barbados
Tom Adams Financial Centre Church Village, St. Michael, Barbados
Tel: (246) 436-6870
Fax: (246) 427-9559
Email: cbb.libr@caribsurf.com
Website: www.centralbank.org.bb

A 1998 legislative enactment allows companies involved in international insurance business to register under the domestic insurance legislation as Qualifying Insurance Companies (QICs). A QIC is entitled to the benefit of a low effective rate of tax (generally 2.8%) after deduction of a foreign currency earnings allowance, and exemptions from withholding taxes and exchange control. Unlike Exempt Insurance Companies, a QIC may insure local risk amounting to not more that 10% of their total book of business.

International Insurance Companies

– A company registered under the Insurance Act may be entitled to tax concessions where at least 90% of its premiums originate outside and at least 90% of its risks insured are located outside CARICOM;
– A maximum tax credit of 93% is available where premiums originate outside of CARICOM;
– Exemption from withholding taxes;
– Exemption from exchange control;
– Personal tax concessions for specially qualified employees ;
– Re-domiciliation provisions;
– Annual fee of BDS $5,000 (US$2,500)

Review the Exempt Insurance Act, Cap 308A (2008-10-08), the Exempt Insurance (Amendment) Act, 2012 – 4 as well as the Insurance Act Cap 310.

Contact Details

Suites 301 & 302, Building 4 Harbour Industrial Park,
Bridgetown, St. Michael,  Barbados BB11142Insurance Act Cap 310
TEL: 421-2142 | FAX: 421-2146
EMAIL:  info@fsc.gov.bb | www.fsc.gov.bb

A Private Trust Company (PTC) is a limited company authorized to act as trustee of one or more family trusts. It is an alternative to using a professional trust company as the appointed trustee, and is used in cases where the settlor of the trust wishes family members to retain a degree of involvement in decisions relating to the trust. The PTC is not permitted by law to offer trustee services to the general public. A Private Trust Company operates under the provisions of the Private Trust Companies Act 2012-22.

Private Trust Companies:

Some Points to Consider;

-The board of directors of a PTC will usually include both members of the family, possibly the settlor of the trust and other immediate family, and trusted family advisers. In this way, the family can actively participate in the decisions that need to be taken by the PTC as trustee, including decisions relating to the control and management of companies owned by the trustee in a way that wouldn’t be possible if the trustee was a professional trustee company.
– In the event of any discord between the administrator and the client, the administrator of the PTC can simply be replaced without changing the actual trustee itself (which can be a protracted experience for both parties). Most importantly, the client’s chosen advisors can remain on the board of the PTC whilst a new administrator is sought.
– Due to the “closed environment” of the PTC, there is minimum risk posed to the wider business sector and law mandates that the Service Provider collect and maintain all transaction records and beneficial ownership information on its clients.
– The Settlor may be a director of a PTC. Other family members or trusted overseas advisers who are not resident may also be directors.
– A “Special Director” appointed to the Board must have training in this area and is also mandated to account for the day to day management of the PTC, as well as report any suspicious or illegal activity to the Ministry. This guarantees efficient and informed governance of the trusts for which the PTC is responsible.
– A PTC has no minimum start-up capital requirements and registration is relatively simple.

Please click here to download the PTC application form.

An Act to amend the Companies Act Cap 308 to provide for the establishment of  Incorporated Cell Companies  was enacted by the Barbados Parliament.   The Act is cited  the Companies (Amendment) Act 2016-1 and was gazetted in the February 18th 2016 edition of the  Official Gazette.

The ICC is a single incorporated entity consisting of a core and one or more separately incorporated cells created for the purpose of providing businesses with the flexibility to structure specific operations through placement in separate incorporated cells. This ensures that the risks and assets of each operation are legally separated from those within another incorporated cell.

Incorporated Cell Company: Some Points to Consider

  • There can be an unlimited number of incorporated companies (called cells), each of which is treated as a separate legal entity. Each cell is considered to be a limited liability company and has its own governance structure with its own Board of Directors and officers;

 

  • The structure also allows each cell to separate its assets, liabilities, shareholder agreements and other legal obligations from other cells within the ICC;

 

  • All cells benefit from the lower costs associated with the shared administration of the ICC as a whole;

 

  • The directors of a cell will be responsible for preparing accounts in respect of that cell, in accordance with the law. The ICC will be required to keep a separate record of members for each cell and to submit an annual return for each cell;

 

  • Subject to compliance with the specific requirements of the law, cells of ICCs can be transferred to Segregated cells and vice versa. However, all cells of an ICC must be incorporated cells and all cells of a Segregated cell must be segregated cells. Therefore, on transfer, the cell must adopt the form applicable to the cell company to which it is transferred;

 

  • Specific provisions should protect cellular assets from creditors’ claims. In particular, creditors with claims arising from cellular transactions are entitled to claim only against the cellular assets of that cell – if their claim does not arise from a cellular transaction, they will not be entitled to claim against cellular assets;

 

  • In the event of the insolvency of a cell, this should not (in the absence of any special provisions in the articles of association subjecting the non-cellular assets to the liabilities of an insolvent cell) lead to the insolvency of the ICC. This results from the separate incorporation of each incorporated company.

If you are considering making an investment in Barbados, then you should contact Invest Barbados.

Invest Barbados will take you through the procedures necessary to the setup process. In close cooperation with all government ministries, Invest Barbados will provide you with smooth access to administrative information including laws, standards, regulations, incentives and business conditions around the nation.

Setting Up A Business in Barbados

All business entities, including external companies, must first register with the Corporate Affairs and Intellectual Property Office (CAIPO) in Barbados. Main types of business are governed by:

  • The Registration of Business Names Act, CAP317: unincorporated business entities such as sole proprietorships and partnerships.
  • The Companies Act, CAP308: corporate entities conducting business within Barbados and the CARICOM region; corporations exporting goods or services globally, including insurance, banking, trust and corporate management services. Companies earning 100% of their income in foreign currency should also apply to the International Business Unit for a foreign currency permit.

Any company engaging in a relevant activity under the substance act such as holding company business, banking business, distribution business, insurance business and intellectual property business are all relevant activities and should be filing substance declaration via a licensed service provider.

Need reasons to invest - Visit Invest Barbados

Helpful Information if you want to:

The Companies Act defines an external company as an incorporated or unincorporated entity formed under the laws of a country other than Barbados. In order to conduct business in Barbados an external company must first register with CAIPO and pay the applicable registration fee of BDS$3,000.00.

To complete the registration process, the company is required to submit a statement on the prescribed form (Form 28), accompanied by the following documents:

  • A statutory declaration by two directors of the company that verifies on behalf of the company the particulars (listed below) set out in the statement.
  • A certified copy of the corporate instruments of the company.
  • A statutory declaration by an attorney-at-law that this section has been complied with.
  • A Power of Attorney and a Consent to act as Attorney in the prescribed form (Form 30) empowering a person named in the power and resident in Barbados to act as attorney of the company for the purpose of receiving service of process in all suits and proceedings in Barbados and all lawful notices.

The following documents are required to establish a new company:

  • articles of incorporation/registration
  • application for a Foreign Currency Permit (FCP) if 100% of earnings will be in foreign currency
  • statutory declaration by a director/manager that 100% of the income earned will be in foreign currency
  • proposed names of company (minimum of two names in order of preference)
  • address of the registered office
  • details of the nature of the business the company proposes to carry on
  • minimum and maximum number of directors (must be a minimum of one)
  • full name and residential address of each proposed director
  • number of employees who will require work permits and the positions to be held by such persons
  • full details of each shareholder including residential address, corporate status,etc.
  • details of each director/manager including academic qualifications, training, experience, etc.
  • proof that no director/manager has ever been convicted in any jurisdiction of a criminal offence related to fraud, money laundering or insider dealing or has been investigated by a regulatory body in any jurisdiction.

On completing the registration of your business name, the following steps are required:

  • Incorporation of a business – Enlist the help of an attorney to complete and submit articles of incorporation to Corporate Affairs and Intellectual Property Office (CAIPO).
  • If 100% of the entity’s earnings will be in foreign currency, you may submit an application for a foreign currency permit (FCP) to the International Business Unit. FCP holders are entitled to certain benefits.
  • Secure a license from the appropriate regulatory body, e.g, the Financial Services Commission for insurance companies, the Central Bank of Barbados for financial institutions.
  • Register the business for statutory obligations with the following:

o  Barbados Revenue Authority: company registration number from CAIPO entered into Tax Administration Management System (TAMIS)

o  National Insurance Department

o  Labour Department

FORMS FOR DOWNLOAD

Applications

New Company Registration

Registration of Business Name Form
Request for Name Search and Name Reservation Form
Registration Fees
Application for Registration-External Company (Form 28)

100% Foreign Exchange Earners

Foreign Currency Permit

Accompanying Documents

International Business Entities

Companies Act, CAP308
Companies Amendment Act 2018-42
Companies (Economic Substance) Act
Foreign Currency Permits Act
Corporate and Trust Service Providers Act

WHAT YOU SHOULD KNOW

All entities earning one million dollars or more must have a Corporate & Trust Service Provider.

If you attempt to carry on corporate and or trust business without a licensed service provider you are committing a criminal offense for which you can be charged, fined or imprisoned.

Substance applies to every resident company that is carrying on relevant activity as detailed by substance legislation.

Holding company business, banking business, distribution business insurance business and intellectual property business are all relevant business. Any company engaging in any of these business activities are required to file substance declaration via their service provider.

Hire a Licensed Service Provider !

Licensed Corporate & Trust Service Providers supply the business experience you need to get your company set up in Barbados.

OTHER RESOURCES

Working in Barbados

Barbados Revenue Authority​

National Insurance Department

Labour Department

Going to school in Barbados

Need more help:

Contact: Kevin Hunte – MIBI, Director

kevin@mibiemail.com