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Barbados Offshore Company Formation

The low tax haven of Barbados is located in the Caribbean. For a number of years now Barbados has offered offshore clients the option of incorporating International Business Companies or offshore companies in the island. Barbados also offers offshore banking at some well established offshore banks some of which are locally owned while others are branches of foreign banks. Offshore Insurance, offshore Trust Management and the registration of ships and vessels are also services offered in the low tax haven of Barbados. offshore company formation in Barbados is a straight forward process which is completed within one (1) working day. A period of two (2) weeks is often required is often needed for the preparations of documents such as the company’s by laws.

Offshore company launching, similar to Seychelles companies formation, in the low tax haven of Barbados is governed according to the stipulations of the Barbados Companies Act which was passed in 1982. The Barbados Companies Act is an archetype of the Canadian Business Company Act. Companies which can be formed under this legislation includes companies which have limited liability, Insurance or mutual companies and companies for use as non profits which can be formed as companies without shares.

The formation of offshore companies in Barbados is a process which can be completed within one (1) working week but additional time may be required to process legal paper work on behalf of the offshore corporation. For offshore company formation a complete Articles of Incorporation must be submitted to the Registrar General’s office. The list of information to be included in a Barbados offshore company Articles of Incorporation are as follows:

  • The name of the proposed company
  • The address and name of the registered agent
  • The registered address of the offshore company
  • A statement must be issued by the company to the Minister Of Finance declaring that the company has the qualifications to be established as an International business Company/offshore company
  • The names and addresses of the shareholders of the company
  • The names and addresses of the offshore company directors
  • The number of shares to be issued
  • The types of share the company will issue
  • The rights, privileges and restrictions placed on each class of share
  • The purposes for forming the offshore company in Barbados
  • The types of business operations the company will undertake
  • The by- laws of the company

This information is submitted to the Registrar of Companies who will review the documents and issue the company a Certificate of Incorporation if the documents are up to standards. The Certificate of Incorporation makes the Barbados offshore company a legal entity within the territory. Once incorporated a Barbados company must then file for a license from the Minister of Finance to be able to operate as an offshore company (International Business Company License). Once the Minister of Finance grants the license a Barbados offshore business company can do business anywhere in the world. A Barbados offshore company can manufacture its good in Barbados but they cannot be traded in the low tax haven or within the CARICOM trading block. All goods manufactured by a Barbados offshore company must be sold outside of CARICOM.

For the formation of offshore companies in the low tax haven of Barbados the laws stipulates that only one (1) director is needed. The director for a Barbados offshore company can be another offshore corporation or a natural person. The director of A Barbados offshore company can be of any nationality. The offshore company legislation does not obligate an offshore company in Barbados to appoint a local director. The number of shareholders needed for the formation of a Barbados offshore company is one (1). The shareholders for Barbados offshore companies can be corporations or individuals.

When incorporating offshore companies in Barbados a request must be made to Registrar of Companies for the reservation of a company name. The Register of companies in the low tax haven of Barbados can refuse to incorporate a company if the name that the company chooses to go by has already been used by anther offshore corporation in the jurisdiction. Barbados offshore companies are obligated to appoint a company secretary. The company Secretary for the Barbados International Business Company can be a corporate body or an individual. Barbados offshore companies must show that there are limited liability companies by adding one of the following words Incorporated, Limited and Corporation or the abbreviation which is suitable for the aforementioned words can also be used.

There is no minimum authorized share capital in place at the moment for a Barbados offshore company. For offshore business formation in Barbados a company can issue its share capital in any currency. The currency moist frequently used for offshore business formation in Barbados is the United States Dollar (USD). For offshore company formation in tax haven Barbados bearer shares are not accepted. Other classes of shares but must be of no par value.

The formation of offshore companies in Barbados has obvious benefits. Being a low tax haven offshore company which is formed in Barbados will pay very low tax rates on their annual profits. Taxes are levied on Barbados offshore companies at rates between 0 and 2.5%. A Barbados offshore company can have it’s the taxes imposed ion it reduced 1% if it takes credit for taxes paid in foreign countries. Barbados offshore companies must pay an annual fee to the government which constitutes a license fee. The annual fee for an offshore business company in Barbados is set at US$425 for each year. The Barbados offshore company is obligated to file its annual financial audits to the finance minister if it’s annual the assets of the Barbados Company reaches the equivalent of US$500,000. In the offshore tax haven of Barbados information concerning company directors and shareholder submitted for offshore company formation is not filed as public record granting some privacy to the officers of the offshore companies. Barbados offshore companies provides offshore asset protection and helps clients to reduce their taxes.