Page 52 - Caribbean-Central America Profile 2018

BARBADOS

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

Starting a Business - Registration Requirements:
No: Procedure Time to complete: Costs
Submit Request for Name Search and Name BBD 30 (BBD 25 for reserving the
1 2 days
Reservation name + BBD 5 for electronic search)
2 Draft articles of incorporation 2 days BBD 1,500
3 Submit application for business registration 7 days on average no charge

4 Pay the registration fees 1 day (simultaneous with previous procedure) BBD 750
Register with the Inland Revenue Department for
5* 2 days no charge
income tax payment
Register with the VAT division of the Customs and
6* 2 days (simultaneous with previous procedure) no charge
Excise Department
7 Register with the National Insurance Scheme 2 days (simultaneous with previous procedure) no charge

8 Make company seal 1 day (simultaneous with previous procedure) BBD 60
* Takes place simultaneously with another procedure Source: The World Bank Group

TAXES OTHER TAX INCENTIVES INVEST BARBADOS
The Fiscal Incentives Act provides various tax • Duty-free entry of Barbados made products Invest Barbados (IB) is an economic development
and customs duty exemptions to corporations into the US and the EU, Canada, Venezuela, agency of the government of Barbados. IB is
involved in manufacturing activities which Colombia and CARICOM member responsible for attracting, winning and sustaining
international investment for Barbados. The
qualify for these concessions. countries. corporation is also responsible for unleashing
Approved enterprises are classified as Group • No restrictions on the repatriation of net the export potential of the indigenous services
sector and helping to develop and manage the
I, II, or III enterprises, depending on the local income earned by individuals or companies Barbados Business brand.
value added or as Enclave Enterprises or Highly during their tenure in Barbados, and income
Capital Intensive Industries. The classification tax concessions to qualified employees of Invest Barbados
granted determines the maximum length of the offshore companies. Trident Insurance Financial Centre
tax holiday which is as follows: • No withholding taxes on dividends, interest, Hastings, Christ Church
Group I: Local value added of at least 50% management fees and royalties paid to non- Barbados, BB15156
Tel: (246) 626-2000
Group II: Local value added of between residents. Fax: (246) 626-2099
25% and 50% • No capital gains taxes, and exemptions from E-mail: info@investbarbados.org
Web: www.investbarbados.org
Group III: Local value added of between taxes on transfers of shares and other assets.
10% and 25% • Full exemption from taxes on corporate TRADE AGREEMENTS AND
profits for fifteen years for companies INVESTMENT TREATIES
An Enclave Enterprise is an approved enterprise manufacturing only for export. Barbados has tax treaties with the following
that manufactures exclusively for export outside countries and is a beneficiary of several
of CARICOM. A Highly Capital Intensive • Special tax rate for export industries of preferential mechanisms which enable foreign
Industry is one with a capital investment of at only 2.5% after the expiration of the tax investors to reach major world markets
least US$25 million. The maximum period of exemption period. with products manufactured or produced in
the tax holiday, which begins from the date of • Tax rate of 1% - 2.5% on profits of Barbados: United Kingdom, the United States
the manufacture of the approved product, is Information Services companies. Full of America, Canada, China, Panama, Mexico,
Seychelles, Malta, Mauritius, Luxembourg,
determined by the classification of the enterprise exemption from import duties on Sweden, Botswana, Bahrain, Spain and a
and is as follows: components, raw materials, production multilateral agreement with CARICOM.
Classification of Period of machinery and other production related Barbados continues its commitment to the
Approved Enterprise Tax Holiday equipment such as computers and spare
parts. implementation of global standards. The country
Group I 15 years signed on to a Foreign Account Tax Compliance
Group II 13 years • Tax rate of 1% - 2.5% on profits of Act (FATCA) Model 1A Agreement with the
Group III 11 years International Financial Services Companies. USA in November 2014 and, since October
Tax rate of 1 % - 2.5% for International 2016, has been a signatory to the Multilateral
Enclave Enterprise 15 years Business Companies. Special income tax Convention on Mutual Administrative
Highly Capital Intensive 15 years concessions on income earned by foreign Assistance in Tax Matters. The jurisdiction is
Industry also a signatory to the Multilateral Competent
nationals having the relevant work permits. Authority Agreement.
Source: Invest Barbados

B-16 Caribbean-Central American Action