An International Business Company is a company incorporated under the provisions of the Barbados Companies Act, which is licensed to do business under the provisions of the International Business Companies Act Cap. 77 of the Laws of Barbados (the IBC Act). IBCs may carry on international manufacturing or international trade and commerce. An IBC may therefore manufacture, process, or otherwise prepare products for export outside of Barbados or provide services to non-residents of Barbados. All companies wishing to operate as IBCs must obtain a licence from the International Business Division, Ministry of Industry, International Business, Commerce and Small Business Development.

IBC Amendments and Regulations

International Business (Miscellaneous Provisions) Act 2014-9

International Business Companies (Amendment) Act, 2012

International Business Companies Regulations 1992

 

International Business Companies: Some Points to Consider

A broad range of business activities can be conducted. For example, IBCs can trade in goods, securities and commodities, hold investments, license and market software, process data, engage in mining etc.;

 

There is a maximum of 2.5% corporate tax rate on net profits;

– Tax on income on a sliding scale, from a maximum of 2.5% to a minimum of 0,25% in 2013;

– There is no capital gains tax in Barbados;

– There are no withholding taxes on dividends, royalties, management fees, interest payments and other fees paid by an IBC to non-residents of Barbados or to another IBC;

– Exemption from exchange control restrictions and records and financial statements may be kept in a foreign currency;

– IBCs may import free from all customs duties, equipment, machinery, or materials for use in its business;

– Profits of an IBC whose shares are wholly owned by a trust which is managed by a licensed offshore bank are exempt from tax;

– Expatriate staff who may readily obtain work permits, can receive partial exemption of income tax on remuneration from an IBC;

– There are no minimum capital requirements;

– Exemption from public filing of financial statements;

– Provision for pre-incorporation contracts and telephone directors’ meetings;

– Barbados is a certified “North American Area” and therefore business convention expenses incurred in Barbados by US corporations and organizations are automatically deductible in the US against US taxes;

– Single shareholder companies permitted;

– Taxes paid to a foreign country may be credited against tax payable in Barbados;

– A single director is allowed who need not be a resident of Barbados. Corporate directors are allowed.

 

Please click here to download the IBC Application form.

View the International Business Company Practice Directions No.2 and Practice Directions No. 3 here.