General Investment Brochure – Financial Services

Barbados Welcomes YOU, and Your Investment

Or if you’re not here yet, we’re confident
it’s just a matter of time.

Barbados is attractive to investors as a secure and reputable
jurisdiction that facilitates global growth and profitability, in
various sectors including international business, financial, wealth
management and insurance services, global education services,
information & communication technology (ICT), renewable energy,
medicinal cannabis, fintech and niche manufacturing, to name a
few.

Emerging sectors are growing exponentially around the world and
Barbados is well-positioned to benefit from this. Our success as a
centre for global business has been built on transparency,
effective regulation, adherence to international best practice
standards and the attraction of businesses of substance.
Additionally, Barbados is the only Caribbean jurisdiction with an
established and growing Double Taxation Agreement (DTA) network
that enables investors to enhance their global competitive
advantage. On the ground, we have the infrastructure,
highly-skilled workforce, competitive costs and tax structure and,
importantly – a supportive government wanting you to
succeed.

Read on to learn more about Barbados’ investment
opportunities across our diversified economy – there’s an
opportunity for everyone. Some priority sectors have special
incentives like concessions on imports and tax allowances –
refer to our incentives section for more details.

Ready to make the next move? Our doors at Invest Barbados are
always open, and the experienced team is ready to support you
through your investment journey.

Quick Facts

General Information

Size: 166 sq. miles/430 sq. km.

Capital: Bridgetown

Government: Parliamentary Republic

Language: English

Time Zone: GMT – 4 hours

Population: 265,332 (2023)

Workforce: 134,300 (2023)

Literacy Rate: 99.6%

Climate: Air Temperature
22-30°C/70-90°F

Relative Humidity: 60-70%

Currency: Barbados Dollars (BDS$) BDS$ 2.00
– US$ 1.00

Major Trading Partners: CARICOM, USA, UK,
Canada, Germany, Japan

Why Barbados?

We know you have options. But we’re confident you’ll
come to the conclusion that Barbados offers everything that your
business needs with all that your heart desires.

Here’s why:

• A business-friendly environment for businesses of substance,
  with a pro-investment Government ready to support you




• A long history of political and social stability, with a legal
  system based on English common law – so your investment is
  safe here




• Excellent physical infrastructure with an international airport
  and modern seaport to get you and your goods on and off the island
  quickly and efficiently




• The right people for the job – Barbados has a well
  educated and available pool of qualified industry
  professionals




• All the connectivity you need – we have island-wide 4G
  LTE and fibre optic high-speed internet




• An expanding international treaty network, ensuring clarity and
  straight-forward tax considerations




• All of the above while enjoying an enviable lifestyle in the
  most beautiful location. Think world-class sporting events, a
  packed social and cultural calendar, exquisite local dining,
  excellent schools, top-notch health system and more. Life in
  Barbados is good and you’ll fit right in.

Investment Incentives

Let’s dig a little deeper. Here are some of the specific
incentives that make Barbados the right choice for you, your
business or investment.

• Foreign Currency Permit: Entities that earn
  100% of their income in foreign currency, are entitled to receive a
  Foreign Currency Permit (FCP). Holders of a FCP benefit from
  exemption from exchange control, and exemption from property
  transfer taxes on transfers of shares or quotas.




• Duty free concessions: Some industries such as
  manufacturing, renewable energy and tourism have specific duty free
  concessions on imports, tax exemptions, training grants and
  more.




• Tax losses: Tax losses brought forward and
  available for offset are restricted to 50% of taxable income in any
  income year.




• Foreign tax credits: Tax paid to a foreign
  country by an individual may be credited against tax payable in
  Barbados, provided that the credit does not reduce the tax payable
  in Barbados to a rate of less than 1% of the tax payable in that
  income year.




• Double Taxation Agreements: These agreements
  offer reduced withholding tax ranging from 0-15%. Barbados has an
  expanding treaty network with 40 Double Taxation Agreements with
  countries including Canada, China, Cuba, Mexico, the UK and the
  USA.

Attracting Businesses of Substance

Economic substance is a G20/OECD global initiative that requires
companies to demonstrate that the profits they register are
commensurate with their economic presence and activities in the
jurisdiction in which they reside. The Companies (Economic
Substance) Act 2019-43 took effect on November 29, 2019, requiring
companies to satisfy the economic substance test in relation to any
relevant activity carried on in Barbados by the company. An entity
whose business is directed, managed and controlled from Barbados is
defined as a “Resident Company” and must satisfy the
economic substance test.

More details on The Companies (Economic Substance) Act
2019-43 are available on the Invest Barbados website.

• Competitive tax rates: Barbados’ general corporation tax
  rate is 9%, effective January 1, 2024.

Full details are available on the Invest Barbados website.

Setting up a Business in Barbados

Let’s look at the practicalities. You can establish a
company in Barbados as a Regular Business Company (RBC) or Society
with Restricted Liability (SRL). An SRL is similar to what is known
as a Limited Liability Company in the USA. Two of the key
differences are that an SRL has limited life, and may be
automatically dissolved on the occurrence of stipulated events or
the end of a fixed period, and also that it must have a minimum of
two members and not shareholders.

Other company structures include external companies and
unincorporated businesses. Further details can be found on the
Invest Barbados website.

Setting up a Regular Business Company (RBC) or Society with
Restricted Liability (SRL) in Barbados

Below are some of the legal requirements for starting a business
in Barbados. Many of these can now be done online for a quicker,
more efficient process and corporate attorneys can of course assist
with the paperwork and submissions.

Incorporating a Business in Barbados

Here’s some of the information and documents that you’ll
need as part of the incorporation process:

• Name of the entity




• The official address in Barbados where the share registers,
  minute books and other statutory information will be kept




• Contact details of auditor, if applicable




• Financial year-end




• The minimum and maximum number of directors (an entity can have
  a minimum of one director)




• Details of activities in which the RBC/SRL will be
  involved




• Name, address, registration/incorporation number of all related
  entities carrying on business, licensed, incorporated, registered
  or organised in Barbados




• Profile of each shareholder and director/manager including
  academic qualifications, training, experience, corporate status,
  etc.

Companies that earn 100% of income in foreign currency are
eligible for an FCP. An FCP application fee of US $125 should be
submitted to the Corporate Affairs and Intellectual Property Office
the same time the incorporation documents are submitted, and
simultaneously, submit the FCP application to the Director,
International Business. Companies must provide a statutory
declaration of a director/manager certifying that 100% of the
income earned by the RBC/SRL will be in foreign currency.

To view the full article, click here.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.