An entity formed under the Societies with Restricted Liability – Cap. 318B possesses the flexibility to be treated as a corporation or a partnership. An SRL can be formed either as an exempt society or a non-exempt society. An exempt society is an SRL that is entitled to special tax benefits and it is known as an International Society with Restricted Liability (ISRL). A non-exempt society is an SRL subject to Barbados tax at the regular rate. ISRLs are used mainly for international transactions and are prohibited from carrying on business with persons resident in Barbados.

SRL Amendments and Regulations

Societies with Restricted Liability (Amendment) (No 2) Act 2012-3

International Business (Miscellaneous Provisions) Act 2014-9

Societies With Restricted Liability Regulations

An SRL has the characteristics set out below:

– Limited liability;

– A maximum of 50 years duration;

– The rights, powers and privileges of an individual;

– Stipulation that the transfer of quotas in a society will not confer on the transferee the right to become a member or participate in the management of the society without the written consent of all the members.

 

The general benefits of an ISRL are similar to those of an IBC. Some of these benefits are as follows:

– Limited Liability;

– Simple winding up provisions;

– Exemption from withholding taxes on dividends and interest payments.

– Simplified re-domiciliation provisions;

– No capital gains tax;

– Exemption from all import duties on machinery or equipment for use in its business;

– Freedom from exchange control;

– Provision for redeemable quotas and for pre-incorporation

– Ease of organisation with no minimum capital requirements

– Corporate directorship and secretary permitted with certain restrictions

 

Please click here to Download the International Societies with Restricted Liability Application.

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