Barbados is located in the eastern Caribbean east of Saint Vincent and northeast of Trinidad & Tobago. Together with seven other small nations, Barbados constitutes the Lesser Antilles. The country occupies an area of 432 square kilometers with a population of approximately 300,000 people.
Barbados was a British Overseas Territory up until 1966, and the traces of British rule are still visible in the society. Barbados is popular for its white sandy beaches, crystal clear waters, warm hospitality, and tropical beaches. The official language of the country is English while Bajan Creole is widely understood and spoken.
The politics and culture of Barbados are heavily influenced by African, European, and Caribbean origins. This versatility of cultures is apparent in music, cuisine, and traditional events.
Types of business structures in Barbados
Barbados is a business-friendly country where the state facilitates foreign investors through flexible tax and other policies. Investors can opt for a business format that best suits their needs.
| S# | Type of company | Local name | Min.required paid-up capital |
| 1. | Sole Proprietorship | One owner company | No paid-up capital required |
| 2. | Partnership | General/Limited Partnership | No paid-up capital required |
| 3. | Limited Liability Company | Private Limited Company (Pvt.Ltd) | $25 |
| 4. | Public Limited Company | Company | $1,000 |
Sole Proprietorship
A sole proprietary business is the simplest form of company that does not involve any complexity. It is owned and managed by a single person who assumes all liabilities in a personal capacity.
Partnership
A partnership business requires two or more individuals to form. It can be either a general partnership where all partners are equally responsible for debts in a personal capacity. Or it can be a limited partnership where a set of partners are only responsible for debts to the extent of their investment.
Company
There are two types of companies in Barbados:
Limited Liability Company
An LLC in Barbados is simply called a company. A company can be incorporated as private or public. A private company has limited liability and is separate from the owners.
Public Limited Company
A public limited company differs from a private limited company in terms of structure and the ability to amass capital through the public by offering of its shares.
Costs involved in registering and incorporating a company in Barbados
The cost of registering and incorporating a company in Barbados can vary depending on various factors such as the type of company, the number of directors and shareholders, and the services required from professionals such as lawyers and accountants.
Here is a general breakdown of the costs involved in registering and incorporating a company in Barbados:
Government Fees
The government fee for registering a company in Barbados is BBD $500 (approximately USD $250). This fee includes the cost of registering the company name, preparing the company’s Articles of Incorporation, and filing the necessary documents with the Registrar of Companies.
Professional Fees
The professional fees for registering and incorporating a company in Barbados can vary depending on the services required. These fees may include the cost of legal advice, accounting services, and company secretarial services.
Other Costs
Other costs associated with registering and incorporating a company in Barbados may include the cost of renting an office space, obtaining necessary licenses and permits, and paying for any necessary insurance.
Overall, the total cost of registering and incorporating a company in Barbados can range from a few thousand dollars to tens of thousands of dollars, depending on the factors mentioned above.
Cost of doing business in Barbados
Expenses during the normal operations of a business in Barbados can vary depending on its size, location, etc. Some of the most probable expenses are listed here:
Labor Costs
The cost of labor in Barbados can vary depending on the industry, skill level, and experience of the employees. The minimum wage in Barbados is currently approximately USD $4.25 per hour, and employers are also required to pay social security contributions and provide benefits such as sick leave and vacation pay.
Rent and Utilities
The cost of renting office or retail space in Barbados depends on the location and size of the space. Utility costs such as electricity, water, and internet access also add up to the cost of doing business in Barbados.
Taxes and Fees
Businesses in Barbados are subject to various taxes and fees, including corporate income tax, value-added tax (VAT), and import duties. The corporate income tax rate is currently 5.5% for domestic companies and 1% for international business companies (IBCs).
Government Regulations
Businesses in Barbados are subject to various government regulations and requirements, which can add to the cost of doing business. These regulations include labor laws, health and safety regulations, and environmental regulations.
Advantages of operating a company in Barbados
The advantages of having a company registered in Barbados are many, few that stand out from others are listed here.
Strategic Location
Barbados is strategically located in the Caribbean region, making it a gateway to the Americas and the rest of the world. The island has a well-developed infrastructure, including an international airport, seaport, and modern telecommunications systems, making it an ideal location for businesses looking to expand their operations in the region.
Stable Political and Economic Environment
Barbados has a stable political and economic environment, with a well-established legal system based on English common law. The country is also a member of several international organizations, including the United Nations, the World Trade Organization, and the Organization of American States, providing businesses with a level of stability and security.
Tax Incentives
Barbados offers several tax incentives to businesses, including a low corporate income tax rate of 5.5% for domestic companies and 1% for international business companies (IBCs). The country also has a network of double tax treaties with several countries, including Canada, the United States, and the United Kingdom, which can help businesses to reduce their tax liabilities.
Skilled Workforce
Barbados has a well-educated and skilled workforce, with a literacy rate of over 99%. The country also has several reputable universities and technical institutions, providing businesses with access to a pool of talented and skilled professionals.
Investment Opportunities
Barbados offers several investment opportunities in sectors such as tourism, financial services, and renewable energy. The country also has a friendly business climate, with a streamlined registration and incorporation process, making it easier for businesses to establish themselves in the country.
