The island of Barbados is territorially located in the eastern Caribbean Sea in the Lesser Antilles group. The state is a British jurisdiction and the official head of state is King Charles, whose authority on the island is represented by the Governor-General. The official language of Barbados is English, but the local dialect is also very common.
Almost all of the country's business activity is carried out in the state's capital, Bridgetown, where almost half of the population lives. Tourism and the sugar industry are developed at a fairly high level in the state. In addition, the financial and information technology sectors are experiencing rapid growth.
Barbados is a jurisdiction that offers many advantages for legal entities, including:
Stability of government and administration;
Provision of guarantees and protection of stakeholders at the legal level;
Extensive tax benefits;
The minimum level of corruption in the country;
The absence of exchange control restrictions;
Confirmation of the integrity of the jurisdiction in the form of approval by the Organization for Economic Cooperation and Development;
A reliable and developed legal framework;
Implementation and support of various types of investment mechanisms;
The ability to conduct business in various formats, including international trading companies, mutual funds, trusts and companies with limited liability.
Types of Corporations in Barbados
In Barbados, an IBC/SCC can open a business or establish its legal presence in one of several forms:
The activities of companies in this jurisdiction are regulated in accordance with the Companies Act. According to this legal act, in Barbados, the following types of corporations can carry out their activities:
International Business Companies (IBC) - are registered to conduct business abroad and are used by foreigners for tax optimization;
Segregated Portfolio Company (SCC). - corporations of this type have the right to carry out both financial and any non-financial activities, which must be approved by the Ministry of International Business.
Regardless of the form chosen by the founder, for the creation of any company in this country it is necessary:
To provide the charter and the memorandum of association of the company;
To declare a registered address in the country;
To apply for a request for verification and confirmation of the name in the register;
To appoint the directors and the secretary.;
Tax system of Barbados
Barbados is a country with one of the most loyal and convenient tax systems with a wide range of well-considered benefits and incentives. The country supports double taxation agreements with 16 countries, including the United Kingdom, the United States, China, Switzerland and Norway.
Barbados legislation provides for the following tax advantages for various entities registered in the jurisdiction of the state:
No payment of income tax as well as other indirect taxes;
No collection of taxes on property or inheritance;
The possibility of importing goods, equipment, raw materials and plants without paying duties and taxes;
Providing a wide range of benefits to foreign persons.
Characteristics of an International Business Company (IBC)
IBC is most often used to achieve offshore goals, since this type of corporation receives a special status, according to the International Business Companies Act of Barbados.
To obtain this status, the registered company must obtain a license and extend it annually. Corporations have the right to carry out any activities that are not prohibited by law. At the same time, commercial transactions with residents of the country, as well as ownership of real estate on the territory of Barbados, are not allowed.
When creating a company and forming its authorized capital, there are no mandatory requirements for the volume of issued shares. Individuals and legal entities residing in any country can be among the shareholders and directors of the IBC. You must have at least one director and one shareholder, as well as a secretary.
Tax obligations of the international business company (IBC)
The tax obligations of the international business company (IBC) for corporations operating under the special status of the IBC provide a number of features, including:
Providing an optimal tax regime;
Exemption from taxation of dividends and other types of payments received from non-residents within Barbados;
Application of a progressive tax on income received from sources within the territory of the state, which constitutes 1 - 2.5%;
There is no taxation at the source of dividend payments.
IBC is also required to submit audited financial statements every year if the total assets or income of such a company exceeds $0.5 million. In addition, in the event that the corporation's profit is more than $1 million, an accountant, a member of the Barbados Association of Accountants, conducts a mandatory audit of the balance sheet.
Key Features of a Segregated Portfolio Company (SCC)
A SCC is a corporation that uses special, highly protected investment vehicles. The company creates two key asset groups for this:
General assets (or reserve assets);
Assets divided into portfolios (or "cells").
Reserve assets are a type of guarantee that is provided to shareholders in the event that the volume of their assets does not allow the repayment of the debt that has arisen.
The assets allocated to the portfolio have their own structure (share and reserve capital, reinvested profits, etc.) and are in no way connected with the assets placed in other portfolios, as well as with reserve assets. Thus, a separate package of shares is issued for each portfolio and their dividends are paid accordingly. All obligations to creditors are covered exclusively at the expense of the allocated portfolio for which they were taken. Such a system allows for fairly low costs for the structure with practically unlimited opportunities for diversification of the corporation's activities.
At the same time, the distributed "cells" do not represent separate legal entities, but are considered in the complex as a company with segregated portfolios. SCC is most commonly used to set up:
Collective Investment Schemes;
Umbrella Mutual Funds;
Captive Insurance Companies;
Holding Companies;
Banking Institutions.
Establishment and Operation of Segregated Portfolio Companies (SCC) in Barbados
Barbados legislation provides for several ways to establish an SCC:
Establishment of an SCC from scratch in this jurisdiction;
Conversion of an existing and registered Barbados company into an SCC;
Transfer of a foreign company to the legal framework of Barbados regulation and its subsequent assignment of SCC status.
Barbados SCC refers to tax residents and pays a fee on profits received on the territory of the state in the amount of 1 - 2.5%. If the source of the company's income is outside this jurisdiction, it is not subject to taxation. Separate accounting of all financial and accounting documentation should be carried out for each SCC portfolio allocated.
li>Corporations of this type have the right to carry out both financial and any non-financial activities, which must be approved by the Ministry of International Business.
The portfolio of specialists of "Smart Startup UK" is formed by more than 8,000 cases in the field of registration and support of international business. Our lawyers will apply this experience to the goals of your project.
CREATE A COMPANY
Company name check and reservation
Company registration, including government fees
Obtaining an administrative identification number
Registering the company with government agencies
Writing a company charter
A set of company charter documents in electronic form
Bank contribution to the company's authorized capital
Obtaining a foreign investment permit
Opening an account at: Republic Bank (Barbados), CIBC First Caribbean Bank
Opening a personal bank account
Apostille and translated corporate documents
Obtaining a residence permit
Free consultation
Online assistance trading and opening an account at viva.com for online trading
Accounting services - 12 months
Accounting services
Annual renewal 1500 Euro (paid from the second year)
*Within 35 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over 5000 Euro) for registering your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit an application for company registration using the application form.
2. We check whether the company name for registration is free and eligible for registration.
3. Choose a bank that meets your company's needs from a list of Smart Startup UK partner banks.
4. We send you a proforma invoice for payment to our bank account + the amount for your company's initial capital.
5. You receive all the necessary company documents for reconciliation.
6. You receive details of your newly opened bank account.
7. Within the specified period (for Barbados IBC/SCC it is 40 days) you receive all the services included in the package.
8. You can manage all the services included in the package through our platform, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticket system for our customers, through which we process each of your support requests.
All services such as management, accounting, bank account opening requests, licensing, tax return filing, tax payment and more are carried out through your account on our platform, making it easier to manage your business!
