If you are interested in forming a new corporation or transferring an existing one, incorporating offshore in Barbados may what you are looking for. How easy and beneficial the process is depends on the jurisdiction selected for incorporation. For instance, incorporating a business in Barbados is an easy process. The purpose of this article is to provide you with information so that you are informed about the benefits of company formation in Barbados.
Barbados, is widely selected as a jurisdiction in which to incorporate a business. Whenever one incorporates a new business offshore, a possible worry to consider is the stability of the country’s economy. In Barbados, there is a solid history of economic stability. On top of this, the Government of Barbados recently enacted laws that greatly assist individuals with forming offshore companies in an efficient and speedy process.
Barbados also houses a government agency that works through agents (such as this one) to assist those in forming offshore corporations in its jurisdiction. The agency attempts to attract offshore investments to its country. Furthermore, the agency also provides assistance in several categories to aid offshore business owners and investors through the process of incorporation.
Another attractive feature in selecting Barbados as your jurisdiction of incorporation is the fact that the organizational expectations of business in Barbados, the United States, the UK, Canada and Australia share a strong resemblance. Thus, if you have started a company at some point in the past and possess experience managing that corporation, that knowledge can assist you when you do business in Barbados.
There are several reasons why existing offshore company and limited company owners are choosing to incorporate in Barbados, making this country an excellent option for incorporation.
Benefits of Forming a Company in Barbados
Barbados offers several bonuses for business owners looking to register their company or limited company within its jurisdiction. Some of these benefits include:
- Duty-free options that help to lower typical business process and manufacturing expenses, mostly through the import duty exemption.
- A concept called the “Ten-Year Tax Holiday,” which means exemption from Barbados taxes for ten years. After that decade passes, the company or limited company is expected to pay a 2.5% tax rate.
- Annual tax returns are not required to be filed each year in Barbados.
- Full assistance to the company and limited company owners at no cost, provided by the organization in Barbados that assists corporations with investment and development.
What to Consider When Forming Your Corporation in Barbados
- Pay close attention to the kind of company you are utilizing for your business. Whatever type of company you are attempting to form, along with the items or services you are promoting, you may register your company either as a limited liability company (LLC) or International Business Company (IBC).
- Asset protection and privacy is another benefit sought in Barbados. You can open a bank account in the name of your Barbados corporation and be assured of significant freedom from prying eyes.
- As far as liability in Barbados, those become the responsibilities of the owner and company partners until a corporation is formed. For this reason, most company or limited company owners would rather form a corporation in Barbados when doing business. Forming a corporation in this jurisdiction forms a separate entity, transferring the liability for business away from the owners into the the corporation itself. So, forming a corporation removes the majority of business liability concerns away from the shareholders.
- For those who decide to incorporate under the Barbados International Business Company (IBC) regulations, there are some supportive laws in place to stimulate economic development in the country. For example, with the extremely low labor costs, if your company or limited company plans to participate in manufacturing, trade, or commerce offshore, forming a corporation is the right move. In order to receive maximum financial and development support from the Barbados government, much of the activity should occur in Barbados with international exportation being a primary goal.
How To Incorporate in Barbados
- After you have selected your name and researched it to ensure that it is an option, this organization will reserve that name along with two other possible name options, listing those names by order of preference.
- Next, the legal department will submit your triple name selection to the proper government agencies.
- Thankfully, Barbados possess an efficient and easy process, so the incorporation process is completed quickly and efficiently.
- After submission, your selected names are scanned by the government to check their status. Within three days, this agency will receive the form back with information about what names are acceptable. Your first available name choice is selected.
- The corporate articles of formation are drafted with your company name. The documents are filed and the address, directors and secretarial appointments are selected.
- Once these items are in the hands of the government registrar, the agency officials file them. The company is then given a company number on, and both the Articles and Certificate of Incorporation. This step takes up to twenty days to turnaround.
- Finally, if you have formed a local company as opposed to an offshore one, once fees are paid and the company number is provided, you need to make sure you register your company for its tax status. This step is completed through the tax department.
- Again, if the company doing business on the island itself, once your tax number is made available to your limited company, make sure to submit the VAT Registration form and the Certificate of Incorporation to the VAT Division of Customs and Excise Department to finish the process of registering your tax status.