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Form a Barbados Corporation Introduction
A Barbados corporation is regulated by the Fiscal Incentives Act which was originally enacted in 1974 with major revision adopted in 2007.
Barbados is an island nation located in the North Atlantic’s Lesser Antilles near the Caribbean Sea. The nearest islands are Trinidad and Tobago 104 miles (168 kilometers) and Saint Vincent and the Grenadines about 250 miles (400 kilometers) away. The island is 21 miles (34 kilometers) long by 14 miles (23 kilometers) wide and covers an area of 167 square miles (432 kilometers). Its estimated population is 290,000 people.
In 1627, the island was settled by the English and became a British colony. Barbados obtained its independence in 1966 and became part of the British Commonwealth.
Barbados Corporation Benefits
Barbados Corporations receive many benefits including:
Barbados Corporate Name
Barbados corporations must select a unique name that is not similar to already existing corporation names. Typically, three versions of the corporate name are submitted with the expectation that one of them will be approved. Once selected, the names can be reserved for three months. This reservation costs between $150 to $200 USD. After submission, the proposed names are scanned to check their status. Within three days, one can be approved.
Office Address and Local Agent
Barbados corporations must have a local registered agent and a local office address. This address will be used for process service requests and official notices.
Barbados corporations are required to have at least one shareholder.
Shareholders may be of any nationality and live anywhere in the world.
Directors and Officers
Barbados corporations are required to have at least one director.
No company secretary or resident director is required in Barbados. Directors may be of any nationality and live anywhere in the world.
The minimum authorized capital requirement to incorporate in Barbados is BBD 0.
Barbados corporations can expect a low corporate tax rate of 2.5%. However, there is a 10-year holiday from this tax from the date of incorporation.
Barbados also offers corporations capital gains and withholding tax exemptions.
Barbados corporations can expect to pay an annual renewal fee of BBD 750. In addition there will be a registered agent fee.
Barbados ensures privacy for offshore corporations. The names of corporate stockholders and directors remain private, and nominee directors and shareholders may be selected for increased confidentiality.
Accounting and Audit Requirements
The corporation must keep a record of meeting minutes and meetings at the registered office. However, corporations are not required to file annual reports.
Annual General Meeting
There is no requirement for annual general meetings to be held locally.
Time Required for Incorporation
Barbados corporations can expect the entire process to take about 5 days. This completion time depends on the approval of the corporate name, as well as, how accurately the applicant completes its registration documents.
Shelf corporations are not available in Barbados.
Form a Barbados Corporation Conclusion
Barbados corporations enjoy several benefits including: A 10-year tax holiday and then only pay a 2.5% tax rate, import duty exemption, only one shareholder required to incorporate, no minimum authorized share capital, an English speaking country offering government assistance with the incorporation process and financial assistance to foreign investors.