• Barbados ISRL

  • GENERAL
    Legal Framework

    The Barbados ISRL is governed by the Barbados Companies Act and the Barbados Societies with Restricted Liability Act.

    Special Characteristics

    A Barbados ISRL has the following special characteristics (prohibitions):

    • it is prohibited from trading in Barbados.
    • it is prohibited from owning real estate in Barbados.
    • local or Caricom shareholding in a Barbados IBC is restricted to 10% or less.
    • manufactured products must be exclusively for export outside Caricom Region.
    • any trade in selling of services, that originate in Barbados, must be for non-Caricom Residents.

    An ISRL allows itself to classify it as a partnership in the U.S. and U.S. taxpayers can therefore claim individual tax treatment for their share in the company in the U.S. whereas at the same time it is classified as a corporation in Barbados and qualifies for attractive benefits as a Limited Liability Company worldwide.

  • SHAREHOLDERS
    Liability of Shareholders

    The liability of the shareholders of a Barbados ISRL is limited up to the unpaid amount of the shares they hold.

    Minimum Number of Shareholders

    The minimum number of shareholders of a Barbados ISRL is 1 and the maximum is unlimited.

    Restriction on Nationality/Residency of Shareholders

    There is no restriction on the nationality or residency of the shareholders of a Barbados ISRL, other than local or Caricom resident shareholders restricted to 10% or less.

    Corporate Shareholders

    The shareholders of a Barbados ISRL can be individuals and/or legal persons.

    Nominee Shareholders

    The use of nominee shareholders is allowed.

  • DIRECTORS
    Minimum Number of Directors

    The minimum number of directors of a Barbados ISRL is 1.

    Restriction on Nationality/Residency of Directors

    There is no restriction on the nationality or residency of the directors (individuals) of a Barbados ISRL.

    Corporate Directors

    Corporate directors are allowed, though they need to be Registered Barbados Companies.

  • SHAREHOLDER MEETINGS
    Shareholder Meetings

    A Barbados ISRL should hold annual general meetings.

    The first annual general meeting should be held no later than 18 months from the incorporation of the Barbados ISRL. Thereafter, annual general meetings should be held in intervals not more than 15 months.

    Annual general meetings of a Barbados ISRL can be held outside Barbados.

  • CAPITAL
    Minimum Capital Requirement

    The minimum capital requirement for a Barbados ISRL is US$1.

    Currency of Capital

    ISRLs issue quotas, rather than shares. The share capital can be denominated in any currency, though usually this is done in US$.

    Capital Duty

    There is no capital duty on the issuance of quotas of a Barbados ISRL.

  • REGISTERED OFFICE
    Registered Office

    A Barbados ISRL is required to have a registered office, which should be located in Barbados.

    Company Secretary / Registered Agent

    Every Barbados ISRL should have a Resident Agent in Barbados and needs to be licensed.

  • FOREIGN INVESTORS
    Restrictions on Foreign Investors

    There are no restrictions on foreign investors investing in a Barbados ISRL.

  • FORMATION
    Time Needed for Incorporation

    It usually takes between 5 - 10 days to register a Barbados ISRL.

    Shelf companies are not available.

  • CONFIDENTIALITY
    Beneficial Owners

    The details of the beneficial owner are disclosed to the Authorities upon registration.

    Registered Shareholders

    The details of shareholders are not available on public record.

    Directors

    The details of directors are available on public record.

    Financial Statements

    The accounts are not publicly accessible.

  • FILING REGUIREMENTS
    Filing with the Registrar of Companies

    A Barbados ISRL is required to file an annual return together with its financial statements by 31 January each year.

    Filing with the Tax Authorities

    A Barbados ISRL needs to file a tax return depending on its financial year-end as follows:

    • On 15th March if the company's year-end is between 1st January and 30th September.
    • On 15th June if the company's year-end is between 1st October and 31st December.
  • RECORDS
    Accounting Records

    A Barbados ISRL needs to maintain accounting records.

    Accounting records can be maintained outside Barbados and in any currency.

    Financial Statements

    A Barbados ISRL should prepare annual financial statements under IFRS.

    In accordance with IFRS, holding companies are required to prepare consolidated audited financial statements on an annual basis. However, consolidation is not required if the company is an intermediary holding company and a holding company further up the structure prepares consolidated financial statements under approved accounting standards.

  • AUDIT
    Audit Requirement

    Annual financial statements of Barbados ISRL should be audited only if its gross assets or revenue exceed US$500,000.

Compare Barbados to other jurisdictions and see the difference in corporation tax rates, tax residency requirements, VAT rates, capital gain taxes, etc.

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