Company Formation in Barbados
Updated on Thursday 09th January 2025
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The jurisdiction benefits from a stable government and a suitable economy that favors foreign investments. It also provides various tax advantages and investors can benefit from the provisions of the double tax treaties signed here.
It is important to know that the Barbados company incorporation process allows businesspeople to set up onshore and offshore companies. The difference between the 2 is that the latter can engage in business activities only with participants from other countries, as it can’t develop its operations with the Barbados market, even though it is incorporated here.
Main company types in Barbados
Businesspeople wanting to start a business here can select some of the most popular vehicles for doing business. For onshore company registration, it is possible to incorporate a company as a limited liability company.
This legal entity is the most common way to engage in a business activity in Barbados and in other countries as well, given that it is created to suit the needs of all small and medium sized companies engaging in a variety of business activities and industries. For investors who are interested in offshore company formation, the most suitable vehicle is the International Business Company (IBC).
While a limited liability company can carry out most of the business activities regulated by the law, the IBC can be set up for specific purposes, such as: international commerce, trade or manufacturing. Our consultants can advise on starting a business in Barbados as a foreigner incorporating an IBC. Some of its characteristics are:
- it can be set up by 1 shareholder;
- it is also necessary to appoint 1 director;
- the incorporation of the legal entity is completed following the provisions of the International Business Companies Act 1991;
- the company is exempted from audit, unless its yearly revenues are above $500,000.
You can discover in-depth details on the country’s tax system on the official website of the Barbados Government, but our team also remains at your disposal on this matter.
What documents are necessary for Barbados company formation?
Investors must prepare specific documentation, as required by the law, which then have to be presented to the representatives of local institutions. For both onshore and offshore company setup, investors must prepare the company’s incorporation documents (the certificate of incorporation and the memorandum and articles of association) and the identity documents of the shareholders and directors.
Concerning the appointment of a company director, we mention that the legislation in Barbados does not impose any residency requirements, therefore it is possible to appoint a foreigner as the director of a local business.
Another requirement for Barbados company incorporation is to make the proof of having a registered address for the newly founded company. Some of the documents required for incorporation have to be signed in front of a notary public.
Outside the notary public and the local institutions, businessmen will also need to enter into contact with local banks, as it is legally required to open a corporate bank account for the legal entity, a rule applicable to onshore and offshore businesses (our team can help you open an offshore bank account).
Whether you need offshore incorporation services or you simply need legal advice and assistance on starting a business in Barbados as a foreigner, you can always rely on our team, where you can obtain professional registration services and other corporate services that your business may require. Therefore, do not hesitate to contact us for more details.