Outlined below are some key guidelines to help you in making your decision prior to establishing an international business in Barbados.

Company Law
The Company Law is based on English Common Law and case law while the Companies Act is modelled on the Canada Business Corporations Act.

Types of Companies
All companies in Barbados must first be incorporated and registered under the Companies Act. Special licences are granted which provide for the tax rates of between 0.25-2.5%. These include:

• International Business Companies (IBCs)
• International Society with Restricted Liability (ISRL)
• International Banks, Exempt Insurance Companies (EIC)
• Exempt Insurance Management Companies
• Qualifying Insurance Companies
• Segregated Cell Companies
• Shipping Companies

Provisions also exist for the establishment of Mutual Funds, Foundations and Private Trusts.

Capital Requirements
There are no minimum capital requirements for an IBC. The minimum capital for an exempt insurance company is US$125,000.00 and for an International Financial Services Company is US$500,000.00.

Costs to Incorporate or Register
The cost to incorporate an IBC or ISRL is approximately US$5,250.00 to US$6,750.00 and the registration fee is US$500.00

Method of Incorporation
Articles of Incorporation, Notice of Directors and Notice of Address are filed with the Registrar of Corporate Affairs. An attorney-at-law or corporate secretary must sign the incorporation documents.

Registered Office
The registered office must be located in Barbados at which Articles, By-laws, Minutes and Resolutions are kept.

Length of Time to Incorporate and IBC or ISRL
On submission of all the required documents, it takes approximately twenty-one (21) working days to incorporate and seven (7) working days to license the entity.

Meetings
Board of Directors’ meetings are recommended at least once per year but can be held as often as required based on the substance of activities.

Shareholders’ meetings are required to be held for the first time within 18 months of incorporation and once every 15 months thereafter. These are generally held after the audit of the financial statements.

Financial Statements
Financial statements for IBCs and SRLs must be audited when the total gross assets or gross revenue exceed US$2 million within its financial year. Audited financial statements must be filed with the Ministry of International Business annually and this is done when the license is being renewed.

Tax Return
A corporation tax return is required to be filed annually for all entities except Exempt Insurance Companies.

Licensing:

Certain categories of companies have licensing requirements:

• International Business Company: An application for an IBC licence is made to the Ministry of International Business immediately after incorporation or registration of the Company. The application fee is US$125.00 and the annual license fee is US$500.00. The application for an IBC licence must be accompanied by the required due diligence information.
• International Society with Restricted Liability: An application for an ISRL licence is made to the Ministry of International Business immediately after incorporation or registration of the Society. The application fee is US$ 125.00 and the annual license fee is US $500.00. The application for an ISRL license must be accompanied by the required due diligence information.

Disclaimer