BARBADOS TAX HAVEN
Barbados Tax Haven. Barbados IBC.
KGN specializes in Bahamas IBC formation and opening bank accounts.
Barbados Tax Haven
Starting a business whether locally or in a foreign country is a great investment. Company formation can result in an excellent return on investment. However, if you are starting a company overseas or expanding the operations of your already existing business, it is key that you identify a country which will provide the most business-friendly environment.
That will see to it that the offshore business is a success. A good business environment will provide policies which are favorable to your International Business Companies. Also, a stable economy is suitable for company formation.
Barbados is one of the countries that is suitable for those who are seeking to start corporations. Barbados tax haven provides just the right environment that will help your business grow and make good profits. Barbados is not only known for its vibrant tourism industry but also for being a tax haven along the Caribbean coastline.
When someone chooses to form their corporations in Barbados tax haven, they stand to benefit a lot. This includes tax incentives, a simplified company formation process and being in an economically stable state. Barbados tax haven has increasingly become a popular destination for people across the world to set up Barbados IBC and other types of businesses.
Why is Barbados considered a tax haven?
Barbados acquired the title “Barbados tax haven” because of its tax-friendly policies. There are various regulations which have been set up in Barbados that make it a low tax haven. The taxes levied range from 1 % to 2.5 %. Also, a Barbados IBC can benefit from incentives such as reduced tax rates, being able to take tax credits or even the absolute exemption of taxes in some circumstances. All these factors contribute to Barbados being considered as a tax haven.
To add on that, non-residents who have businesses in Barbados will not be liable to pay withholding taxes on income that comes from rent, dividends or management funds that come from their other offshore companies. Also, they can make a transfer of shares from one person to the other without having to pay taxes. Investors find this to be a huge plus for starting a Barbados IBC.
For these reasons, Barbados tax haven has increasingly become popular among foreign investors. Such policies are also beneficial to the country as they attract foreign capital to their economy.
Advantages of company formation in Barbados
As already stated, company formation such as the Barbados IBC has very many advantages to the investors or organization who start it. Other than the Barbados tax haven being a major factor that attracts investors, there are other merits of doing business in Barbados. They include:
The process is relatively simple
Company formation in Barbados will not be a daunting task. This is because there are structured regulations which guide people through the process and the requirements which are to be adhered to before company formation.
An example of an Act that guides company formation in Barbados is the International Business Companies Act 1991. This is the most commonly used company formation legislation in Barbados as most Barbados are most common.
In addition, there is other legislation such as Foreign Sales Corporations Act 1984. It is vital to have such legislation as they make the process well-organized thus taking a shorter time. One can seek help from legal professionals or corporations intended to help foreigners as they establish their businesses.
This is another advantage that arises from company formation in Barbados tax haven. A Barbados IBC can take advantage of the tax credit to make sure that they pay lower taxes. This feature works by allowing a company to take credit for the foreign taxes which they have paid. That way, they can reduce the amount of taxes that they are supposed to pay annually.
This feature can allow one to reduce their payable tax up to 1 %. A significant number of foreign investors have been attracted by such incentives. They appreciate the need of being able to take advantage of such incentives in an attempt of ensuring that the money saved goes into facilitating other business operations.
Economic, social and political stability
One of the greatest strengths that an economy can provide for investors is having a stable economic, social and political structure. The Barbados tax haven is perfect. For the longest time, it has been politically stable as it features a structured democracy and a modern legal system which is based on the English Common Law.
The white sandy beaches and other economic activities such as agriculture and manufacturing have contributed to the continuous growth of the Barbadian economy. Therefore, there are many sectors in the economy where one can establish a Barbados IBC. The good economy of the country provides assurance that your investment is going to mature to fruition.
Exemption from taxes and duties on import
This is very beneficial to businesses which have been established in the Barbados tax haven. A Barbados IBC and other businesses can immensely benefit from the no taxation on imports policy. Goods, machinery, raw materials and other machinery, which are imported for the use of your business, will not be subjected to taxation.
This policy is very key. However, it is a fact that this policy is not available in all the countries. That is why an investor should consider company formation in Barbados. When imports are not subjected to taxes and duties, an investor can be able to bring in more capital to the business which will ultimately improve its operations.
Benefits of the privacy and confidentiality in Barbados
The laws in Barbados have various policies aimed at protecting the privacy and confidentiality of an investor. This is beneficial so that third parties will not have access to information about the owners of a Barbados IBC or Offshore Banks. The owners of such companies will not be forced into giving out details about them. Also, they ensure that the information cannot be accessed by the public.
Consequently, if you are interested in company formation but would like it to remain private and confidential, Barbados should be your premier option. Your privacy will always be guaranteed.
Types and characteristics of businesses which can be formed in Barbados
The legislation of Barbados provides for a variety of company formation options depending on the type and nature of the business an investor is involved in. Once an investor has identified the type of businesses they want to start, they can the follow the regulations which govern company formation in that area. Some of the companies which one can form include:
I) International Business Companies (IBC)
International Business Companies are the most popular type of offshore business in Barbados. The regulations require that such companies should have at least one director, whose details shall remain confidential. Also, it is required that such a company must register a minimum of one shareholder.
Mostly, Barbados IBCs are usually granted the permission to operate in tourism, commerce, international business services, and manufacturing. Their base of operation must be in Barbados, but their products can be exported to anywhere in the world. For entities in Barbados that are registered under International Business Companies, their names end with the abbreviation of titles such as “Corporation,” “Incorporated” or “Limited.”
The Companies Act gives guidelines on how an IBC should be formed. Among them, it requires that the company gives the intention of the business and the percentage shares which are to be held.
II) Offshore Banks
Barbados tax haven provides an opportunity for foreigners to establish banks in Barbados. Those interested in establishing one usually make an application to the Central Bank of Barbados indicating their intention to form an offshore bank. Additionally, they will provide details about the financial services which they will be providing, the location of where they intend to set up the bank and the names of the directors in charge of managing the bank.
Following the approval by the Central Bank, they will have to make the final application to the Director of Bank Supervision in Barbados. The origin of offshore banking in Barbados can be traced back to 1979 when the Offshore Banking institution was formed. Today, offshore banks in Barbados tax haven provide services such as credit card and debit cards, online banking among many other diverse services.
III) International Trust
An International Trust established in Barbados must be registered as per the regulations in the Barbados Trust Act. Under this Act, it is also required that the trustee should be a permanent resident of Barbados. The trustee should also be a resident of Barbados. On the other hand, there are no regulations requiring that the beneficiaries be residents of Barbados
Any property excluding real property can be held in trust on behalf of the beneficiary. The benefits of developing an international trust in Barbados include absolute tax exemption. To add on that, confidentiality is guaranteed as the details about the settlor and the beneficiaries are not accessible to the public.
IV) International Insurance Company
Like most of the other companies, insurance companies which seek to establish their insurance company in Barbados will have to apply to the Office of the Supervisor of Insurance. In the application, the investor will have to attach draft articles which provide information about the parent company, the purpose of the company and the directors who are actively involved in the management of the company.
It is also required that those who wish to start a business should file a given list of incorporations with the Registrar of Corporate Affairs in Barbados. They include; the Notice of Address and Directors, the by-laws of the company among others.
The other type of companies which one can form in Barbados includes; Barbados Foreign Sales Corporation and International Society with Restricted Liability (SRL). The type of company that you will start will be dependent on the nature of your business.
Requirements while operating a business in Barbados tax haven
Once someone sets up a Barbados IBC or any other type of company, there are some requirements which they will have to meet. These requirements were set up to ensure that the companies are operating legitimately.
To begin with, the companies will have to pay an annual license fee. The standing license fee for companies in Barbados tax haven is $425. This amount is relatively lower compared to the amount of license fees which corporations have to pay in other countries.
Also, the companies will be required to file their tax returns once a year. This will allow them to know if the business has met the set tax regulations. The Barbados IBC will also have to file their annual financial statements at the Ministry of Finance. All these regulations are steered towards promoting transparency among the businesses which are operating in Barbados.
To conclude, Barbados tax haven provides the best environment for investors and organizations to set up their offshore businesses. The low tax rates, the economic stability and exemption of duty on imports of materials used by the business provides a conducive environment for businesses. It is no wonder that investors across the world have been attracted to company formation in Barbados.
If you are looking forward to establishing a business in Barbados, you should make adequate research on the specific business type you would like to invest in. A good legal team and help from company formation consultants will make sure that the process goes smoothly.
Barbados Company Formation Prices
Barbados Company Formation Package Includes:
- Company Name Check
- Initial Business Approval
- Preparation of Application Documents
- Company Registration Fee
- Certificate of Incorporation
- Registered Office Address for 1 year
- Registered Agent Services for 1 year
- Government filing fee
- Memorandum & Articles of Association
- Minutes of first meeting appointing the director(s)
- Share Certificate(s)
- Register of shareholders
- Register of directors
Starting at: $5990
Why Choose KGN?
We’ve been helping business owners since 1998
Incorporating your business is our focus
We make a complex process fast and easy
We work closely with Companies Registries to guarantee our service
Fastest offshore companies & accounts – Most competitive pricing worldwide
KGN provides the following services in the Bahamas:
- Bahamas Company Formation
- Registered Office and Agent Services
- Company Secretarial Services
- Nominee Shareholder / Nominee Director
- Full Company Administration Services
- Bahamas Offshore Bank Accounts
- Mailing Address
- Virtual Office
- Trademark Registration
- Yacht Registration
Barbados – General Information
Location: Caribbean, island in the North Atlantic Ocean, northeast of Venezuela.
Area:total: 430 sq km, land: 430 sq km , water: 0 sq km. …
Natural resources: Petroleum, fish, natural gas.
Population: 292,336 (July 2017 est.)
Time Zone: UTC−4.
Languages: English (official), Bajan (English-based creole language, widely spoken in informal settings).
Government type: Parliamentary democracy (House of Assembly) under a constitutional monarchy; a Commonwealth realm.
Legal system: English common law; no judicial review of legislative acts.
International organization participation: ACP, AOSIS, C, Caricom, CDB, CELAC, FAO, G-77, IADB, IBRD, ICAO, ICCt, ICRM, IDA, IFAD, IFC, IFRCS, ILO, IMF, IMO, Interpol, IOC, ISO, ITSO, ITU, ITUC (NGOs), LAES, MIGA, NAM, OAS, OPANAL, OPCW, UN, UNCTAD, UNESCO, UNHCR, UNIDO, UPU, WCO, WFTU (NGOs), WHO, WIPO, WMO, WTO.
Economy: Barbados is the wealthiest and one of the most developed countries in the Eastern Caribbean and enjoys one of the highest per capita incomes in the region. Historically, the Barbadian economy was dependent on sugarcane cultivation and related activities. However, in recent years the economy has diversified into light industry and tourism. Offshore finance and information services are important foreign exchange earners, boosted by being in the same time zone as eastern US financial centers and by a relatively highly educated workforce.
Currency: Barbadian dollar (BBD).
KGN | Barbados IBC