Population

The population of Barbados is approximately 285,000 people.

Political Structure

The Island was uninhabited and was first settled by the British in 1627. The gradual introduction of social & political reforms in 1940 & 1950 led to full independence from Britain on Nov 30 1966. An independent sovereign state within the Commonwealth, Barbados has its capital in Bridgetown. Barbados has the third oldest functioning parliament in the world with 358 years uninterrupted parliamentary system of government.

Infrastructure & Economic

Barbados has excellent transport links. The geographical location has left it well placed to a central point for air and sea travel between the eastern & western hemisphere. Historically, the economy has been dependent on sugarcane cultivation and related activities, but production in recent years has diversified into light industry and tourism. The development of international business & financial services sector that began around 1977 contributes significantly to foreign exchange earnings. Barbados now provides facilities for international business companies, international banks, exempt insurance & management companies, registration of ships and limited liability companies. Barbados is a member of Caricom, the Caribbean common Market.

Language

The official & spoken language is English.

Currency

Barbados Dollar has a fixed exchange rate of two "Bajan" dollars for each U.S. Dollar.

Exchange Control

IBCs are exempt from exchange control regulations and the books/records can be maintained in any currency.

Type of Law

Barbados legal system is based on English common law, no review of legislative acts. Courts are available on the English model with the final appeal being to the Privy Council in London.

Principal Corporate Legislation

International Business Companies Act (IBC Act) 1991.
Companies Act Cap 308 (amended from 2007 to 17)

Type of company for international trade & investment

International Business Company (IBC).

Procedure to incorporate

The registered agent prepares the Articles of Incorporation and by-laws to establish the IBC. Application must be made for an international business company licence to the Barbados Ministry of Finance as soon as possible after the incorporation of the company. If IBC wishes to benefit from the Canadian exempt surplus rules, an independent Barbados resident, who must be a professional person of good repute, will be appointed as an independent director.

Restrictions on trading

• An IBC can not trade in Barbados or owned property.
• Local or Caricom resident ownership must be limited to 10% or less
• Sales of services originating in Barbados, must be for non-Caricom residents
• Manufactured products are exclusively for export outside the Caricom Region

Powers of Company

An International Business Company has all the powers of a natural person.

Language of Legislation & Corporate documents

The legislation & corporate documents are in English.

Shelf Companies Available

No

Time to Incorporate

One day, but a further 10 working days as required by the Registrar for the production and release of the Certificate of Incorporation, certified copy of the by-laws and to apply for an international business applying for a licence from the Barbados Ministry of Finance.

Name Restrictions

An existing name registered in Barbados or famous trademark or trade name.

Language Name

If a foreign language is used for the name a certified translation of the name will be required, however, Chinese characters or similar means won't be premitted.

Registered Office Required

Yes, a registered office must be maintained in Barbados, and copies of all company records.

Names Requiring consent or a license,

Notable company names or brand names unless it's authorised by the holder of that name.

Suffix to denote Limited Liability

Limited, Incorporated or Corporation Ltd., Corp. and Inc.
The Barbados LLC is known as a SRL, Society with Restricted Liability.

Disclosure of beneficial ownership to the authorities

No, this information is required as part of the business licence application, but the information isn't available to the public.

Authorised and Issued share capital

The authorised capital stock is somewhere between one and unlimited, however the usual authorised capital stock is $1,000 divided into one thousand shares of U.S. $1. Equity capital can be expressed in any currency, but if specified it must still be the currency used in all transactions and reporting.

Classes Allowed

Any class of shares to be issued as long as they're without par value. Bearer shares aren't allowed.

Taxation

International Business Companies (IBC) benefit from significantly reduced tax rate, which may be as low as 1% of profits in excess of BD$30 million. IBCs can also take credit for foreign taxes paid, provided the credit doesn't reduce the Barbados tax rate to less than 1%. Interest, rent, management fees or royalties paid by an IBC to another IBC or a person not resident in Barbados are also exempt from withholding tax. No tax or duty is levied on transfer of shares in an IBC, a non-resident person or IBC, to another foreign person or IBC. Duty-free imports on machinery and equipment for business purposes is also allowed for IBCs.

Double Taxation

Exemption of withholding tax on dividends makes Barbados IBCs particularly attractive to Canadians, as the dividends an "active" IBC pays its Canadian parent company isn't taxed in Canada because they're part of the parents exempt surplus. Under Canadian law, the exempt surplus of active business income of the foreign subsidiaries are conducted in a listed country like Barbados.
Barbados has traditionally pursued attracting foreign investment and has set about the establishment and expansion of the treaty network by concluding bilateral investment treaties and double taxation agreements. Barbados has entered into tax agreements with the following countries: Canada, Caricom, China, Cuba, Finland, Malta, Norway, Sweden, Switzerland, United Kingdom, United States & Venezula.

Licence Fees

Companies with an authorised capital of $1000 are to pay a sum of $425 per year. This fee runs from Jan 1st to Dec 31st of each year and must be renewed on Dec 31st in order to remain in good standing, non-renewal on the given date will result in a fine of U.S. $250 is imposed and the validity of the licence may be revoked by the authorities.

Financial Statement Requirements

Basic financial statements are required to support your tax return. Audited accounts, where required, must be sent to the Ministry of Finance. Inspections are required only if total assets exceed BDS $1 million (approximately U.S. $500,000) and the BCA require that the auditor is a practising member of the Institute of Chartered Accountants of Barbados.

Directors

The minimum number of directors is one. Directors may be natural or legal persons. If corporate, they can only be of a Registered Barbados company. If a natural person, then they may be of any nationality, but if the IBC is to take advantage of the Canadian exempt surplus rules of an independent Barbados resident who needs a professional person and a good reputation is to be appointed as an independent director.

Company Secretary

Yes, local secretary for assisting with the filing of statutory documents and the annual general meeting by consent of action which meets the requirement of Barbados Law.

Shareholders

The minimum number of shareholders is one.

How can I get more information on company formation in Barbados?

Please contact us if you wish to open a company in Barbados and we will be pleased to discuss your Barbados company formation matters in greater detail.

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