A new country can seem like a frightening place to launch a new business or relocate an existing one. Thankfully, launching a business in Barbados is not too difficult, especially if you are aware and ready. The economy of this nation has always been steady. Additionally, the Barbados government has improved its regulations to make it simpler for foreign investors to set up an international corporate company and get the greatest benefits. A government organization called Invest Barbados (IB) has been given the responsibility of attracting international investment. To help foreign investors launch their businesses in the nation, this organization provides a variety of facilities and services.
The taken steps to start a tourism business in Barbados
The following is the legal procedure:
Choosing the business name you want to register
You may need to register your business as a corporation or a limited liability firm, depending on the type of business you run and the goods or services you are providing.
The company’s owner and partners are now responsible for any business obligations. Therefore, operating a corporation is advantageous since it establishes a distinct legal entity and thereby lessens the obligation of the owners.
Additionally, foreign investors have the option to operate as International Business Companies (IBCs). In Barbados, offshore operations frequently have this status. Companies that engage in international trade, commerce, or manufacturing are typically issued IBC licenses. While the company’s exports should flow to countries beyond the Caribbean trade region, its principal operations should be located in Barbados.
As an alternative, you might apply a business name registration form, which only costs around $20 US. To search for and reserve company names, submit the name search and name reservation form to the corporate affairs and intellectual property office. Form 33, can also be done online. Please list your top three choices for 3 names in this form. Before sending the form to you with a checkbox next to the available name, the registrar will determine whether these names are available. This reservation is good for roughly 90 days and the complete process takes no longer than three working days.
In Barbados, forming a firm typically costs between $150 and $200.
Articles of association drafting (or Articles of Incorporation)
Anyone can get the standard version of the Articles of Incorporation from the website of the company registrar. However, it is advised that a lawyer be retained for the Articles’ writing. The completed form is then delivered to the registrar with the following:
- Notice of directors.
- A notice of an address.
- Notification of the appointment of a secretary.
After submitting the required paperwork, the registrar of corporate affairs applies and submits the articles. Additionally, a company number is allocated to that file, and both the Certificate of Incorporation and the Articles will contain this number.
The complete process ought to last 15 to 20 working days and cost about USD 1200. The fees are paid at a different counter but at the same time and place.
Enrolling in the income tax, customs, and excise duty systems
In Barbados, all businesses are required to register with the inland revenue department for income tax. The CIT registration form, a copy of the Articles of Association, and a certificate of incorporation are the necessary paperwork.
The VAT division of the customs and excise department must also receive the VAT registration form and a copy of the Certificate of Incorporation.
Due to the duty-free possibilities, Barbados is a great place for investors to lower processing and manufacturing expenses.
Investment opportunities in Barbados
Barbados is the perfect location to lower manufacturing and information processing costs, benefit from duty-free exports to foreign markets, and boost profitability.
The following are some benefits of opening a tourism business in Barbados:
- After the tax break, there will be a low tax rate.
- Absence of import taxes.
- Return of all capital, profits, and dividends.
- 10 fully-serviced industrial parks offer cheap, subsidized factory space.
- Grants for employee training in cash cooperation and effectiveness in customs service.
- The Barbados investment and development corporation offers free consultancy services (BIDC).
- Low operating expenses (savings of at least 40%).
- A workforce that is well-educated, competent, adaptable, and productive with low rates of absenteeism and turnover.
- Stability and integrity in the economy, politics, and social areas.
- Duty-free entry into the United States, Canada, and the European Union.