Barbados company registration

DOING BUSINESS IN BARBADOS IN 2018

Since 2003, Healy Consultants Group PLC has assisted our Clients with business registration in Barbados. Our services include i) Barbados business registration (offshore and onshore) ii) government license registration iii) international or Barbados corporate bank account opening iv) employee recruitment v) employee visa strategies and vi) virtual office services.

Summary table of Barbados company registration

SummaryTax resident LLCLegally tax exempt LLCExempt insurance companyTrustFoundation
Also known asRBCIBCCaptive insurance companyOffshore trustInternational foundation
Best use of company?All products and servicesInternational tradingInsure risks of ownersTax planningAsset management
How soon can you invoice Clients/sign sales contracts?3 weeks3 weeks6 monthsCannot trade4 weeks
How soon can you hire staff?3 weeks3 weeks3 weeksCannot hire4 weeks
How soon can you sign a lease agreement?2 weeks2 weeks2 weeksCannot lease2 weeks
How long to supply corporate bank account numbers?6 weeks6 weeks8 months6 weeks6 weeks
How long to supply company registration/tax numbers?3 weeks3 weeks3 weeks4 weeks4 weeks
Corporate tax rate on annual net profits?25%2.5%0%0%0%
Limited liability entity?YesYesYesNoYes
Government grants available?YesYesYesNoYes
Government approval required for foreign owners?NoNoYesNoNo
Resident director/partner/manager/legal representative required?NoNoYesNoYes
Minimum paid up share capital?US$1US$1US$125,000US$1US$5,000
Can bid for Government contracts?YesYesNoNoYes
Corporate bank account location?Bank of Nova ScotiaCIBC First Caribbean International BankFirst Citizens BankRoyal Bank of CanadaRepublic Bank
Can secure trade finance?YesYesYesNoYes
VAT payable on sales to local customers?17.5%Cannot trade locallyCannot trade with third partiesCannot tradeCannot trade locally
Average total business set up engagement costs?Request a proposal US$11,725Request a proposal Request a proposal Request a proposal
Average total engagement period?2 months2 months8 months2 months2 months

Barbados company registration summary

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  • Advantages of Barbados company registration

    Advantages and disadvantages for business registration in Barbardos

    1. Incorporating in Barbados may allow our Clients certain benefits including:
      • Barbados companies can be easily incorporated with 1 director and 1 shareholder within 2 weeks. Furthermore, there is no minimum share capital mandated under the law. Lastly, our Client will not be required to travel to Barbados to complete the company registration process;
      • An international business company (IBC) will allow our Clients to establish use their Barbados operations to cater to customers from other parts of the world. Such an entity will allow tax benefits including i) low corporate tax rate between 1% and 3% ii) capital gains tax exemption iii) withholding tax exemption on remittances to non-resident entities and iv) import/export duty exemption;
      • Our Clients, who only need a Barbados entity for a limited time period, may choose to incorporate an international society with restricted liability (ISRL). An ISRL will have 2 members (shareholders), who will enjoy limited liability with regards to the entity’s losses. Furthermore, this entity will allow our Clients to enjoy the same benefits as an IBC.
    2. Our Clients may choose to setup manufacturing operations in Barbados because:

      • Under the Fiscal Incentives Act, local companies approved by the Barbados Investment and Development Corporation (BIDC) are eligible for tax holidays for up to 15 years. The determination will be made in accordance with the value added of the local economy;
      • Barbados companies has concluded trade agreements with several jurisdictions including the United States, Canada and European Union nations. Consequently, Barbados resident companies will enjoy preferential access to their local markets;
    3. Barbados is also an excellent location for Clients who wish to register their companies for i) offering international banking and insurance services ii) setting up mutual funds and iii) owning and operating ships. Furthermore, our Clients may also choose Barbados to setup trust entities.
  • Disadvantages of Barbados company registration

    1. Barbados may be perceived as an offshore tax haven;
    2. Offshore banks, exempt insurance companies and foreign sales corporations are not eligible for Barbados IBC status;
    3. Following Barbados company registration, a registered office must be maintained in Barbados at which articles, bylaws, minutes, and resolutions are kept.

Company registration

  • Time to incorporate: Six weeks
  • Cost to set up: US$11,725
  • Minimum capital: US$0
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 1
  • Company secretary: No
  • Resident director: No

Key facts

  • Corporate tax rate: 25%
  • Corporate tax base: Worldwide
  • Shelf companies: Unavailable
  • Main company type: IBC

Business set up strategy
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Frequently asked questions

Contact us

For additional information on our company registration services in Barbados, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Seth Ochieng, directly:
client relationship officer - Seth