Barbados, the fascinating Caribbean island in the Lesser Antilles, is currently developing into a sought after location for offshore start-ups and investment.
Traditionally, the Barbados economy has always been known for sugar cane cultivation and tourism for several decades. However, the information sector and offshore investment location have been steadily promoted by the local government since the 1990s, and these economic sectors have become increasingly influential in economic development.
Some facts about Barbados
According to the 2013 International Monetary Fund, Barbados is the world’s 51st richest country in terms of gross domestic product per capita. The legal system, although largely independent, is based on the principles of the British Common Law and the official language in Barbados is English. An undeniable factor for potential company formation. Traditionally strong trading partners are the USA, Kannada and Great Britain. In 2009, Barbados also signed an agreement with the EU to help Barbados with a € 10 million program to modernize the international business and financial services sector. Barbados, with its approximately 280,000 inhabitants, also has the third largest stock trading in the Caribbean. The literacy rate of the country is almost 100%.
The Barbados International Business Company
For international and foreign companies, when establishing a business in Barbados, the International Business Company (“IBC” for short) may be considered. It should be noted that the IBC is not allowed to trade within Barbados and also can not own real estate. If a foreign (not English name) is chosen as a company name, a certified translation of this company name may be necessary. Anonymity is also ensured: The names of the shareholders and beneficiaries are not publicly accessible after registration. Establishing the IBC is sufficient for a director (“director”), who can be both a natural and a legal person. In addition, a local representative must be appointed.
Benefits of taxation
The great advantage of IBC’s founding in Barbados, like the essence of offshore founding, is inherent in the substantial tax relief. Profits of over 30 million Barbados dollars can sometimes be taxed at a low rate of only 1%. Taxes on the transfer of shares may also be avoided, provided that the transfer takes place between persons not resident in Barbados or between IBC companies.
The efforts and efforts of Barbados to establish itself as an offshore location are hard to miss and the location can be a real alternative for your planning. If you have any further questions, we are happy to help!