Since 2003, Healy Consultants Group 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.

Barbados company registration summary

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• Advantages of Barbados company registration

  

  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;
  4. Barbados provides a range of special incentives to companies whose main business activity revolves around green business:
     • The companies are given an initial allowance of 20% on their capital expenditures;
     • The companies are entitled to an allowance of 150% incurred on their capital expenses in the year in which the purchase of the same has been made;
     • Investors who fully own and occupy a residential property as well as incur the expenses of buying or installing “environmental-friendly products” are entitled to a deduction of up to US$5,009 against the costs incurred.

• Disadvantages of Barbados company registration

  1. Barbados may be perceived as an offshore tax neutral jurisdiction;
  2. Offshore banks, exempt insurance companies and foreign sales corporations are not eligible for Barbados IBC status;
  3. Effective 1 January 2019, Barbados entities including those carrying out i) banking ii) insurance iii) fund management iv) finance and leasing v) headquarters vi) shipping vii) holding companies viii) intellectual property (IP) companies and ix) distribution and service centres activities are required to employ local staff and lease a physical office. Company articles, bylaws, minutes and resolutions must be kept at the Barbados office;
  4. Barbados has been poorly ranked as the 117^th freest economy (out of 180 economies) in the 2018 Index of Economic Freedom due to its heavy reliance on tourism sector for its economic growth as well as a poor bureaucracy that discourages the investment behavior of entrepreneurs in the economy.