Company Formation in Barbados Overview
The small island nation of Barbados in the Atlantic Ocean (only 430 square kilometers in size) was under British rule for many years, but became a parliamentary republic in 2021. Accordingly, the official language is English, and the currency is the East Caribbean dollar, pegged to the US dollar.
Time to register a company
2 to 4 weeks
Average register a company timeline
Authorized capital
US$50,000
The registered capital
Tax rate
2.5%
Сorporate tax rate
The country is now one of the leaders in terms of living standards among developing countries. Its main sources of income are sugar cultivation, tourism, and offshore business. There is no pressure on foreign business from the state, as it brings a significant part of the profits to the treasury. Over the years, the government has built an attractive system of benefits and incentives to attract investment. The authorities offer favorable tax rates, freedom of currency payments (there is no currency control), data confidentiality, and an extensive banking system (about 40 banks recognized by the OECD) for registering companies in Barbados and conducting international business. Tax agreements have also been signed with more than 40 countries: the US and Canada (main partners), China, Germany, Belgium, and Switzerland. Barbados remains a member of the Commonwealth of Nations, which gives it certain privileges.
Country information: Barbados
| National currency | Barbadian dollar (BBD) |
| Official language | English |
| Credit rating | BB |
Advantages of registering a company in Barbados
Attractive taxation.
Corporate tax rate of only 2.5%, no capital gains tax, customs duties, stamp duty, or gift tax.
Minimal registration requirements.
There are no residency requirements for directors/founders, and only one shareholder is required. Registering a company in Barbados costs around US$1,000.
Enhanced confidentiality.
Company ownership registers are closed, as is information about their property and capital.
Minimal financial reporting requirements.
Only a tax return is filed annually, and documents can be stored anywhere at the company’s discretion.
Financial stability and developed legislation.
Any type of business can be conducted, but banking and insurance activities require licensing.
Ready to Start Your Company in Barbados ?
Our experts will accompany you at every stage of the opening process, ensuring its smoothness and efficiency.
Types of companies in Barbados
Barbados offers the opportunity to register various types of businesses in accordance with the Companies Act. Different types of legal entities have different requirements depending on the purpose and size of the company.
Brief description of the different types:
- Regular Barbados Company (RBC) – international business is possible with the permission of the Central Bank. This type of business is suitable for doing business with Barbados residents. Limited liability companies (SRL) – international activities are only possible with the permission of the Central Bank. There are no requirements for authorized capital, no currency controls, and payments to non-residents are not subject to tax.
- International Business Company (IBC) – operates under the International Business Companies Act and carries out activities such as the purchase and sale of goods outside the country, services for non-residents, and exports; must be licensed by the Ministry of Industry and International Business and pay an annual fee of US$100. It is mandatory to have an office in the country, provide information about directors and shareholders, and have financial statements audited if income exceeds US$500,000.
- International limited liability companies (ISRL) are regulated by the Barbados Limited Liability Companies Act (SRL) and must obtain a license for international activities. They cannot do business with residents or purchase land in Barbados.
Corporate Information
| Ready-made companies are available for purchase | Yes |
| Legal system | Based on English common law |
| Use of Cyrillic characters in company names | No |
| Local registered office required | Yes |
| Legal forms | Limited liability company, international business company (IBC), limited liability partnership (LLP), regular Barbados company (RBC) |
| BPA in the company name | Limited (Ltd.), Incorporated (Inc.), International Business Company (IBC) |
| Local registered agent required | Yes |
Requirements for opening a company in Barbados
Requirements for registering a company in Barbados include:
- Choose a unique name for the company (may include abbreviations: Ltd., Inc., Corp. for IBC).
- Provide company documents (agreements, memoranda, protocols, certificates, etc.).
- At least one managing director (no residency requirements), but you must provide your residential address.
- At least one shareholder/owner (resident of any country), registration address must be provided
- There are no requirements for the number of meetings of directors and owners.
- There is no minimum share capital requirement, but banks require US$1,000, and the average capital is around US$50,000.
- Open a bank account (can be in US dollars)
- Have a local registered office
Shares and share capital
| Standard currency for shares | Barbadian dollar (BBD) |
| Beneficiary information disclosed | No |
| Minimum issued capital | No restrictions |
| Bearer shares permitted | No |
| Authorized capital | US$50,000 |
| Terms of payment of capital | No restrictions |
| Nominal value of shares | US$1 |
| Possibility of issuing shares without par value | Yes |
The process of opening a company in Barbados
To register a company in Barbados, you must complete the following steps:
Determine the type of business structure and the need to obtain a license
Possible registration options include:
Register a name
The name must be unique and not be repeated by companies already registered on the island. Registration is carried out by the Corporate Affairs and Intellectual Property Office, established in 1988 (it is possible to reserve a name for 90 days before making a final decision).
Preparation and collection of documents
The package of documents includes the founding documents, information about the managers and owners, legal addresses, notarized Articles of Association and Memorandum of Association, as well as other founding documents.
Open a bank account
There are more than 40 banks operating in the territory, including RBC Royal Bank, Butterfield Bank, First Caribbean International Bank, RBTT Bank, and Republic Bank. Opening a corporate bank account usually takes about 4 weeks.
Submit the documents to the tax office
Registration with the Barbados Central Tax Office is required, where the company will be assigned an income tax number.
Comply with all business requirements
Requirements include:
Ready to Start Your Company in Barbados ?
Our experts will accompany you at every stage of the opening process, ensuring its smoothness and efficiency.
Documents required to register a company in Barbados
The package of documents may vary depending on the type of activity chosen and the need for licensing (for banks, insurance companies, investment funds, asset/capital management companies).
The general package of documents includes:
- For managers, shareholders/founders, and persons passing through the organization, provide a resolution appointing a director, copies of passports, proof of residence (bills, receipts, contracts, etc.), and a description of employment activities.
- Articles of association (describing corporate policy), memorandum of association (describing the type of activity), office lease agreement/resolution, and minutes of the shareholders’ meeting.
- Application for company registration with the Department of Corporate Affairs and Intellectual Property
The registration process can be done remotely and takes about one month.
Establishing an International Business Corporation (IBC) in Barbados
In Barbados, business activities are regulated by the Companies Act (1982), as amended in 2019.
The most popular form of international business is an international business corporation (IBC):
- A prerequisite for establishing an IBC is registration on the island at a local office.
- IBCs are prohibited from owning real estate on the island and doing business with residents.
- Both individuals and legal entities can be managers and owners, and there are no residency requirements.
- At least one director, one shareholder, and one secretary (who must reside in the country) are required.
- There is no tax on income received from non-residents of the country.
- Progressive income tax scale.
- Audit of income over $500,000 by the Barbados Association of Accountants.
To obtain an IBC license, you must apply to the Ministry of International Business (MIBI) and specify:
- Type of activity (trade, services, financial services, etc.)
- The names and addresses of shareholders (residents of the Commonwealth of the Caribbean may not own more than 10%).
- Provide information on the percentage of share ownership (residents of the Caribbean Commonwealth cannot receive payments/dividends in excess of 10%).
The IBC registration service package includes:
- Articles of association, memorandum of association, minutes of meetings, contracts
- The authorized capital is US$50,000 with confirmation of the origin of funds. It is also necessary to explain the origin of funds for shareholders with a 10% stake in the capital.
- A document confirming the appointment of the managing director, as well as his passport details
- Confirmation of the existence of a local office
- Decision to open a bank account (indicating the persons authorized to sign)
- Registration applications
Documents for obtaining IBC status must be submitted in English and notarized; registration may take up to 3 months.
Taxation in Barbados
IBC companies are not subject to capital gains tax, VAT, or stamp duty.
Corporate income tax is defined as the profit earned from business or property for the year. The taxation of company dividends is governed by the Barbados Income Tax Act (BITA) and depends on the company’s residency.
Income tax rates in Barbados:
- For resident and non-resident commercial companies: 25%.
- Insurance companies (life): 5%, general insurance: 25%
- Manufacturing enterprises: 15%
- IBCs (banks, commercial companies, international businesses): 0.25%-2.5% depending on income
- For branches: 10%
Taxation
| VAT | Yes |
| Basic corporate tax rate | 5.5 |
| Capital gains tax | No |
| Currency control | No |
| Detailed information on corporate tax rates | The tax is progressive and depends on income, but cannot exceed 5.5%. |
| Stamp duty | Yes |
Director and secretary
| Minimum number of directors | 1 |
| Residency requirement for directors | No |
| Legal entity directors permitted | Yes |
| Information provided to local agent | Yes |
| Information disclosed in the public register | No |
| Secretary required | Yes |
| Residence requirement for secretary | No |
| Qualification requirements for secretary | No |
| Legal entity as secretary | Yes |
Shareholder and beneficiary
| Minimum number of shareholders | 1 |
| Data entered in the public register | No |
| Residency requirement for shareholders | No |
| Beneficiary information disclosed | No |
| Beneficiary information disclosed to local agent | Yes |
| Legal entities are permitted as shareholders | Yes |
Reporting
| Reporting required | No |
| Open access to reports | No |
| Mandatory audit requirement | No |
| Annual declaration required | Yes |
| Public access to annual report | No |
| Reporting requirements | Yes |
FAQ about Company formation in Barbados
How do I incorporate a company in Barbados?
Gather the necessary documents and send them to the Department of Corporate Affairs and Intellectual Property.
How much does it cost to register a company in Barbados?
Depending on the type of business you choose, you will need to obtain a license. The cost of registration will be from $1,000.
How long does it take to register a company in Barbados?
Registration can take up to one month, and for IBCs, up to three months.
Can foreigners open a business in Barbados?
Yes, the country’s legislation does not impose any residency restrictions. The owner, director, and shareholder can be either residents or non-residents.
Is Barbados suitable for fintech or digital services?
Barbados may be of interest for the development of fintech/digital services for the purpose of international business structuring, for developers of SaaS platforms, and funds (B2B model). For cryptocurrencies, custodial services, and exchanges, regulation is not specified, which makes it difficult to open this type of company and continue its activities.
What is the difference between an SRL and a regular company?
The main difference lies in their legal status, taxation, management structure, and the application of international law.
Is Barbados on the blacklist of tax havens?
No, Barbados is not on the “blacklist.” The EU has recognized the jurisdiction as complying with international standards of transparency and information exchange following tax reforms.
