Anyone who said you couldn't mix business with pleasure has never been to Barbados!
While Barbados is rightly renowned as one of the top leisure destinations in the world, it is also a great place to invest and do business.

The island has a dynamic and constantly growing international business and financial services sector. Businesses are drawn by an array of government incentives on the one hand, including low taxes subsidised factory and office space and excellent human and physical resources on the other, including a highly educated workforce and quality infrastructure.

And of course, it doesn't hurt that gorgeous white sand beaches and international-grade golf courses are never more than a half-hour away from the office!

Would you like to do business in Barbados? Read on to see if your business is one of the entities that qualify.

International Business Companies

To qualify, the company:
- Must be incorporated or registered in Barbados.
- Must be financially capable of carrying out the business
- Cannot carry on business under any other offshore incentive legislation.
- Cannot be owned by a resident of Barbados and may not trade goods or services in Barbados or the Caricom Area.

There are many benefits to establishing an IBC in Barbados. These include:
- Low taxes on income on a sliding scale with a maximum of 2.5%.
- Exemption from all withholding taxes.
- No capital gains tax or estate duty.
- Freedom from exchange control.
- An IBC can keep books and records in a foreign currency
- No consumption tax, customs duty or stamp duties on imports of equipment and machinery.
- An IBC which is solely owned by an Offshore Trust under the management of a licensed Barbados International Bank is exempt from tax if its activities are restricted to buying, holding or managing securities.

International Banks

To qualify, the company:
- Must submit details of the proposed bank to the Central Bank of Barbados for approval.
- Should be a company incorporated under the Companies Act of Barbados as a company limited by shares.
- Must restrict its business activities to offshore banking from within Barbados.
- Has to include among its directors at least one resident citizen of Barbados.
- Must seek approval from the Ministry of Finance prior to its incorporation.
- Must have a licence before engaging in banking.
- Must show that they are an eligible company or a qualified foreign bank.
- Must show that they are capable of attaining the minimum capital requirement of US $500, 000 for residents and US $125,000 for non-residents.

The Barbados government offers many benefits and incentives, which have contributed to making the island a leading financial services hub. These include:
- Low taxes on banking profits on a sliding scale, with a maximum of 2.5%.
- No other direct tax or capital gains tax on the profits of the bank.
- No taxation on distribution to a non-resident person or other licensee.
- Exemption from customs duty on equipment brought in for the use of the business.
- Rates of interest are not controlled.
- Agreements or guarantees by the Minister regarding the future taxing of a licensee.
- Tax concessions for specially qualified non-residents whose services are required by the bank.

International Societies with Restricted Liability

This is very similar to what is known in the US as a Limited Liability Company (LLC). Characteristics of an ISRL are:
- It has a full judicial personality.
- It can have a life of up to 50 years.
- It has limited liability.
- It may be recognized as a partnership or a corporation depending on the nature of its organizational documents.

To qualify for special Barbados tax benefits, an ISRL:
- Must continuously maintain a registered office and agent in Barbados.
- Must have a minimum of two members.
- Cannot acquire or hold land in Barbados, other than that required for its business by way of a lease or tenancy agreement for no longer than the period of the duration of the Society.
- Cannot transact business with any person resident in the CARICOM region.
- Contributions to capital may be made in cash or other property but not services.
- It is not dissolvable on the death of a member except where the articles specifically so provides.

Benefits include:
- The benefits for an ISRL are identical to those for an IBC, except that the tax and duty exemptions are guaranteed for 30 years.

Exempt Insurance Companies

To qualify, a company:
- Must be incorporated in Barbados with a minimum capital of US $125 000.
- Must have at least one director who is a resident of Barbados and cannot own shares in the company.
- Cannot insure risks originating in Barbados or risks of local residents.
- Must have all shareholders resident outside the Caribbean Community.

There are many incentives that make it very worthwhile for companies seeking to establish an exempt insurance company in Barbados. These include:
- 0% rate of tax on profits for the first 15 years and 2% on the first $250, 000 of profits.
- Exemption from withholding taxes.
- Exemption from exchange control.
- Tax concessions for specially qualified persons whose services are required by the business.
- Re-domiciliation provisions.
- Convention expenses allowed by U.S. authorities.

Qualifying Insurance Companies

Companies involved in international insurance business are allowed to register under Barbados’ domestic insurance legislation as Qualifying Insurance Companies (QICs). A QIC can be owned by residents of Barbados and insure a certain amount of local risk.

There are multiple incentives available to QICs registered in Barbados. This includes:
- Where at least 90% of its premiums originate outside of CARICOM and at least 90% of its risks insured are also located outside of CARICOM, tax concessions are available.

- A tax credit of up to 93% is available where premiums originate outside of CARICOM.
- Exemption from withholding taxes.
- Exemption from exchange control.
- Tax concessions for specially qualified persons whose services are required by the business.
- Re-domiciliation provisions.

International Trusts

Under Barbados’ International Trusts Act, non-residents may create a trust for the benefit of other non-residents. There are no minimum capital requirements and they can be either fixed interest or discretionary. International Trusts are taxed at a maximum of 50% on profits earned or remitted to Barbados.

To qualify, the trust:
- Must specify in the trust deed that the International Trusts Act applies.
- Must ensure that the settlor and the beneficiaries are non-residents of Barbados.
- Must ensure that the assets of the Trust do not include Barbados real estate.
- Must have at least one trustee who is a resident of Barbados.

There are several benefits to establishing a Barbados Trust. These include:
- The trust period lasts up to 100 years.
- Trusts are permitted for non-charitable purposes, as long as the purpose is specific, reasonable and capable of being fulfilled and protector is appointed to enforce said trust.
- Exemption from Barbados taxation and exchange controls.
- Rule against perpetuities does not apply.
- International Business Companies and International Banks registered in Barbados can be beneficiaries.