BARBADOS Offshore Companies
Barbados Offshore Companies. Barbados IBC.
KGN specializes in Bahamas Offshore Companies and opening bank accounts.
Barbados Offshore Companies
Starting a business, whether locally or in a foreign country, is a big investment. Business formation can result in an excellent return on investment. However, if you are starting a business abroad or expanding the operations of your already existing business, it is important that you identify a country that will provide the most business-friendly environment.
This will ensure that the offshore business will be a success. A good business environment will provide policies favorable to your international business ventures. A stable economy is also suitable for business formation.
Barbados is one of the countries that is suitable for those looking to start businesses. The Barbados tax haven provides just the right environment that will help your business grow and make good profits. Barbados is not only known for its vibrant tourism industry, but also for being a treasure haven along the Caribbean coastline.
When someone chooses to form their companies in the tax haven of Barbados, they stand to benefit greatly. This includes tax incentives, a simplified business formation process and being in a financially stable state. The Barbados tax haven has increasingly become a popular destination for people around the world to set up Barbados IBCs and other types of companies.
Why is Barbados considered a tax haven?
Barbados acquired the title “Tax Haven of Barbados” due to its tax-friendly policies. There are various rules that have been set up in Barbados that make it a low tax haven. The taxes charged vary from 1% to 2.5%. Also, a Barbados IBC can benefit from incentives such as reduced tax rates, being able to take tax deductions or even the absolute exemption from taxes in some circumstances. All these factors contribute to Barbados being considered a tax haven.
To add to that, non-residents who have business in Barbados will not be required to pay withholding tax on income derived from rent, dividends or management funds derived from their other offshore companies. They can also make a transfer of shares from one person to another without having to pay tax. Investors find this a huge plus for starting a Barbados IBC.
For these reasons, the Barbados tax haven has become increasingly popular with foreign investors. Such policies are also beneficial to the country as they attract foreign capital to their economy.
Benefits of Business Formation in Barbados
As already mentioned, company formation like Barbados IBC has a lot of advantages for the investors or organization that starts it. Besides the Barbados tax haven being a major factor that attracts investors, there are other benefits to doing business in Barbados. They include:
The process is relatively simple
Business formation in Barbados will not be a daunting task. This is because there are structured rules that guide people through the process and the requirements that must be met before company formation.
An example of a law governing company formation in Barbados is the International Business Companies Act 1991. This is the most commonly used legislation for company formation in Barbados, as most Barbados are most common.
In addition there is other legislation such as the Foreign Sales Corporations Act 1984. It is crucial to have such legislation, as it makes the process well organized and thus takes less time. You can seek help from legal professionals or companies that aim to help foreigners when they establish their businesses.
Tax deduction
This is another benefit that arises from incorporation in the Barbados tax haven. A Barbados IBC can take advantage of the tax credit to ensure they pay lower taxes. This feature works by allowing a business to take credit for the foreign taxes that they have paid. In this way, they can reduce the amount of tax that they have to pay annually.
This feature can provide an opportunity to reduce their tax liability up to 1%. A significant number of foreign investors have been attracted by such incentives. They appreciate the need to be able to take advantage of such incentives in an effort to ensure that the money saved goes to facilitate other business activities.
Economic, social and political stability
One of the greatest strengths that an economy can provide investors is having a stable economic, social and political structure. The Barbados tax haven is perfect. For the longest time, it has been politically stable, as it has a structured democracy and a modern legal system based on the English Common Law.
The white sand beaches and other economic activities such as agriculture and manufacturing have contributed to the continued growth of the Barbadian economy. Therefore, there are many sectors of the economy where you can establish a Barbados IBC. The good economy in the country ensures that your investment will ripen into fruit.
Exemption from taxes and duties on import
This is very beneficial for businesses established in the Barbados tax haven. A Barbados IBC and other companies can greatly benefit from the policy of no taxation on imports. Goods, machinery, raw materials and other machinery imported for use by your company will not be taxed.
This policy is very central. However, it is a fact that this policy is not available in all countries. Therefore, an investor should consider business formation in Barbados. When imports are not subject to taxes and duties, an investor may be able to bring more capital into the business, which will ultimately improve its operations.
Benefits of privacy and confidentiality in Barbados
The laws of Barbados have various policies aimed at protecting an investor’s privacy and confidentiality. This is advantageous so that third parties will not have access to information about the owners of a Barbados IBC or Offshore Banks. The owners of such companies will not be forced to provide information about them. They also ensure that the information cannot be accessed by the public.
Therefore, if you are interested in company formation but would like it to remain private and confidential, Barbados should be your best option. Your privacy will always be guaranteed.
Types and characteristics of companies that can be formed in Barbados
The laws of Barbados allow for a number of options for company formation depending on the type and nature of the business in which an investor is involved. Once an investor has identified the type of business they want to start, they can follow the rules governing incorporation in that area. Some of the companies one can form include:
I) International Business Companies (IBC)
International business companies are the most popular type of offshore company in Barbados. The rules require such companies to have at least one director whose information must remain confidential. It is also required that such a company must register at least one shareholder.
For the most part, Barbados IBCs are usually licensed to operate in tourism, trade, international business services and manufacturing. Their base must be in Barbados, but their products can be exported to anywhere in the world. For entities in Barbados registered under International Business Companies, their names end with the abbreviation of titles such as “Corporation,” “Incorporated,” or “Limited.”
The Companies Act provides guidelines for how an IBC must be formed. Among them, it requires the company to disclose the intention of the company and the percentage of shares to be held.
II) Offshore banks
The Barbados tax haven allows foreigners to set up banks in Barbados. Those interested in establishing one usually submit an application to the Central Bank of Barbados stating their intention to form an offshore bank. In addition, they will provide details of the financial services they will provide, the location of where they intend to set up the bank and the names of the directors responsible for managing the bank.
After approval from the Central Bank, they must submit the final application to the Director of Banking Supervision in Barbados. The origins of offshore banking in Barbados can be traced back to 1979 when the Offshore Banking institution was formed. Today, offshore banks in Barbados tax havens offer services such as credit and debit cards, online banking among many other different services.
III) International Trust
An International Trust established in Barbados must be registered under the rules of the Barbados Trust Act. This Act also requires the Trustee to be a permanent resident of Barbados. The trustee should also be resident in Barbados. On the other hand, there are no rules that require the beneficiaries to be residents of Barbados
Any property other than real estate may be held in the trust on behalf of the beneficiary. The benefits of developing an international trust in Barbados include absolute tax exemption. To add to that, confidentiality is guaranteed as the details of the settlor and beneficiaries are not available to the public.
IV) International insurance company
Like most other companies, insurance companies seeking to establish their insurance company in Barbados must apply to the Office of the Insurance Regulator. In the application, the investor must attach draft articles that provide information about the parent company, the company’s purpose and the directors who are actively involved in the management of the company.
It is also required that those wishing to start a business must submit a given list of incorporations to the Registrar of Corporate Affairs in Barbados. They include; the address notice and the board of directors, the company’s articles of association, i.a.
The other type of companies that one can form in Barbados include; Barbados Foreign Sales Corporation and International Society with Restricted Liability (SRL). The type of business you want to start depends on the nature of your business.
Requirements while running a business in the Barbados tax haven
Once someone sets up a Barbados IBC or any other type of company, there are some requirements that they must meet. These requirements are established to ensure that the companies operate legally.
To begin with, companies must pay an annual license fee. The standing license fee for businesses in the Barbados tax haven is $425. This amount is relatively lower compared to the amount of license fees that companies have to pay in other countries.
The companies must also submit their tax return once a year. This will allow them to know whether the company has complied with the prescribed tax rules. Barbados IBCs must also file their annual accounts with the Ministry of Finance. All these regulations are aimed at promoting transparency among the companies operating in Barbados.
In conclusion, the tax haven of Barbados provides the best environment for investors and organizations to establish their offshore companies. The low tax rates, the economic stability and the exemption from customs duties on the import of materials used by the company provide a favorable environment for the companies. It is no wonder that investors all over the world have been attracted to business formation in Barbados.
If you are looking forward to establishing a business in Barbados, you should do adequate research on the specific type of business you would like to invest in. A good legal team and the help of company formation consultants will ensure that the process goes smoothly.
Barbados incorporation fees
Barbados Company Formation package includes:
- Check company name
- Initial business approval
- Preparation of application documents
- Company registration fee
- Certificate of Incorporation
- Registered office address for 1 year
- Registered agent service for 1 year
- State application fee
- Memorandum & articles of association
- Minutes from the first meeting with the appointment of director(s)
- Share certificate(s)
- Register of shareholders
- Register of directors
From: $5990
Why choose KGN?
We have been helping business owners since 1998
Incorporating your company is our focus
We make a complex process quick and easy
We work closely with business registries to guarantee our service
Fastest Offshore Companies and Accounts – Most Competitive Rates Worldwide
Services offered
KGN provides the following services in the Bahamas:
- Bahamas incorporation
- Registered office and agent services
- Company secretarial services
- Nominated shareholder / Nominated director
- Full business administration
- Bahamas offshore bank accounts
- Mailing address
- Virtual office
- Trademark registration
- Yacht registration
Barbados – general information
Location: Caribbean, island in the North Atlantic Ocean, northeast of Venezuela.
Area: total: 430 km2, land: 430 km2, water: 0 km2. …
Natural resources : Petroleum, fish, natural gas.
Population: 292,336 (est. July 2017)
Capital: Bridgetown.
Time zone: UTC−4.
Languages: English (official), Bajan (English-based creole language, spoken in informal settings).
Government type: Parliamentary democracy (House of Commons) under a constitutional monarchy; a Commonwealth realm.
Legal system : English common law; no judicial review of legislative acts.
International organization participation : ACP, AOSIS, C, Caricom, CDB, CELAC, FAO, G-77, IADB, IBRD, ICAO, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, ISO, ITSO, ITU, ITUC (NGOs), LAES, MIGA, NAM, OAS, OPANAL, OPCW, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO.
Economy : Barbados is the richest and one of the most developed countries in the Eastern Caribbean and has one of the highest per capita incomes. population in the region. Historically, the Barbadian economy was dependent on sugarcane cultivation and related activities. However, in recent years the economy has diversified into light industry and tourism. Offshore finance and information services are important currency earners, boosted by being in the same time zone as eastern US financial centers and by a relatively highly educated workforce.
Currency: Barbadian dollar (BBD).
KGN | Barbados IBC
