Barbados IBC

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.