IBC status is given to companies that are carrying on the business of international manufacturing or international trade or commerce. Broadly speaking, these activities have to be carried out in Barbados, with exports or the provision of services being to countries outside the CARICOM area or to other IBCs, exempt insurance companies or Foreign Sales Corporations (i.e. other offshore entities). The Act limits the issue of an IBC license to companies that fulfill the following criteria: The company must be resident in Barbados (resident means incorporated in or managed and controlled from Barbados; registered foreign ‘external ‘companies are deemed to be resident) No more than 10% of the assets of a company would accrue on liquidation to holders of its shares and loan capital resident in the CARICOM area. No more than 10% of the interest and dividend payments made by a company should go to individuals resident in the CARICOM region.

Features

Barbados IBC

Corporate Details

General

  • Type of Entity

IBC

  • Type of Law

English Common Law

  • Registered Office in Barbados

Yes

  • Shelf company availability

Yes

  • Our time to establish a new company

3 Weeks

  • Corporate Taxation

1- 5% Depending on income

  • Access to Double Taxation Treaties

No

Share capital or equivalent

  • Standard currency

US Dollar

  • Minimum paid up

$ 1

  • Usual authorized

$ 1,000

  • Bearer shares allowed

No

  • No-par-value shares allowed

N/A

Directors

  • Minimum number

1

  • Local required

No

  • Publicly accessible records

No

  • Location of meetings

Anywhere

  • Corporate directorship allowed

Yes

Members

  • Minimum number

1

  • Publicly accessible records

No

  • Corporate members allowed

Yes

  • Location of meetings

Anywhere

Company Secretary

  • Required

Yes

  • Local or qualified

Yes

Accounts

  • Requirements to prepare

No

  • Audit requirements

Yes (for Incomes above $500,000)

  • Requirements to file accounts

No

  • Publicly accessible accounts

No

Advantages

  1. A very low tax rate from of 2.5% of income down to 0.5% depending on the income level in the table below:
  2. Taxes paid outside of Barbados are eligible for a foreign tax credit to reduce taxes payable in Barbados, once it does not reduce total tax to less than the 0.5% minimum tax rate
  3. Capital gains are tax exempt
  4. There are no withholding taxes on dividends, interest, royalties and management fees paid to nonresidents
  5. Exempt from import duties and taxes on materials, machinery, plant and equipment intended for business use
  6. Exempt from exchange controls on foreign currency
  7. Privacy is protected and there is no need to publicly file financial statements
  8. Accounting records may be kept in foreign currencies

The Valsen Advantage

  • Speedy, Efficient and consistent Services.
  • Relentless effort to obtain bank accounts.
  • Expert advice on structuring options.
  • Dedicated ongoing compliance support.