Barbados Offshore
"The Benefits of Registering Offshore Companies in Barbados"

There are many advantages to setting up a Barbados offshore business.  Barbados is a world class offshore business jurisdiction that features a well-regulated and long-established international business and financial services sector.  As such, it has become the international hub for many growing businesses that have chosen to expand internationally.

The Barbados offshore sector is built on a philosophy of attracting quality substantive businesses and adhering to a high level of transparency.  This approach has been well received and has earned the country worldwide recognition and accolades including being included on OECD’s coveted “white list”.    

With more than 4,000 registered offshore companies in Barbados, there are many great reasons to consider using this Caribbean island as a home for your corporate needs.

The Top 5 Reasons to Register a Business in Barbados

Low Taxation – The tax rate for international businesses is only 2.5% of taxable profits, there are no capital gains taxes and no withholding taxes on dividends.  In today’s competitive environment, businesses must compete by reducing taxation as this provides an effective way to get a leg-up on the competition.

Strong Regulation – Barbados features 18 tax treaties with other countries and is a very well-regulated offshore jurisdiction.  A powerful legislative framework is in place providing businesses and individuals with enhanced property protection and an independent judiciary enforces the law.  International organizations including the OECD have recognized and rewarded this high level of regulation by giving the island its exclusive “white list” status rating.

High Quality of Human Resources – The local workforce is highly educated providing businesses with professionally qualified Barbados tax advisors, accountants, managers and lawyers.  In a measure of overall development, the UN Human Development Index ranks the island as 3rd in the Americas behind only Canada and the United States of America and ranking it 4th worldwide for literacy.

Political and Economic Stability – Barbados has a very long record of political stability dating back to the founding of its parliamentary system in 1639.  The Barbados banking system is one of the most stable in the world.  This stability within the banking system has been given credit for allowing the country to avoid the economic fallout that affected so many other countries during the recent recession.

Good Infrastructure – As an international business hub, Barbados features a well-developed infrastructure facilitating its status as a world class business hub.  This includes strong telecommunications, internationally established banks, no foreign exchange controls for international businesses, good roads and an international airport that is linked to several major cities worldwide.

Types of Offshore Businesses in Barbados

There are several different types of offshore businesses that can be registered locally including International Business Companies, International and Offshore Trusts, International Banks, Captive Insurance and Societies with Restricted Liability.

The most common type of business structure registered is the International Business Company (IBC) which includes companies in manufacturing, trade and commerce.  The IBC is a very versatile structure facilitating most businesses that operate on a global scale.  Examples of activities that these businesses are involved in include sales organizations that may sell pharmaceuticals, computer software and most other products, companies that offer investment management services and financing, as well as manufacturers of contact lenses and much more. 

Offshore Trusts are another popular investment vehicle.  Trusts offer strong asset protection coupled with strict confidentiality as well as full tax exemption making them a key tool used in wealth management planning for high net worth individuals.

Barbados Offshore Qualification Requirements

Qualifying to register an international business in Barbados is generally straightforward and is a real possibility for most businesses that operate in more than one country.  The main criteria involve having a local office where the offshore company is operated from, ensuring that the “mind and management” is located on the island.  In addition, the company must be selling goods internationally to at least one other country outside of its parent company’s home country.

Costs and Fees

The registration fee is only US $425 and the legal fees for registration are between US $2,500 and $5,000.  It is best to hire a management service provider with office facilities to operate the company and supply the mind and management needed to meet the qualification requirements.  This can cost as little as US $18,000 annually and is quite reasonable considering the cost of rent and the human resources needed to run an overseas office are all included in this total. 

Setting up a Barbados offshore company offers a fantastic business proposition when you take into account the large amount of money saved in taxes by paying only 2.5% or less on profits.

This article was written by the Barbados Offshore Advisor.  The Advisor runs his own management service company and has been providing management and accounting services to international businesses for over 18 years.  If you are considering registering an offshore company in Barbados, make sure to receive your Free Barbados Offshore Evaluation from the Advisor.