A 1998 legislative enactment allows companies involved in international insurance business to register under the domestic insurance legislation as Qualifying Insurance Companies (QICs). A QIC is entitled to the benefit of a low effective rate of tax (generally 2.8%) after deduction of a foreign currency earnings allowance, and exemptions from withholding taxes and exchange control. Unlike Exempt Insurance Companies, a QIC may insure local risk amounting to not more that 10% of their total book of business.

International Insurance Companies

– A company registered under the Insurance Act may be entitled to tax concessions where at least 90% of its premiums originate outside and at least 90% of its risks insured are located outside CARICOM;
– A maximum tax credit of 93% is available where premiums originate outside of CARICOM;
– Exemption from withholding taxes;
– Exemption from exchange control;
– Personal tax concessions for specially qualified employees ;
– Re-domiciliation provisions;
– Annual fee of BDS $5,000 (US$2,500)

Review the Exempt Insurance Act, Cap 308A (2008-10-08), the Exempt Insurance (Amendment) Act, 2012 – 4 as well as the Insurance Act Cap 310.

Contact Details

Suites 301 & 302, Building 4 Harbour Industrial Park,
Bridgetown, St. Michael,  Barbados BB11142Insurance Act Cap 310
TEL: 421-2142 | FAX: 421-2146
EMAIL:  info@fsc.gov.bb | www.fsc.gov.bb

A Private Trust Company (PTC) is a limited company authorized to act as trustee of one or more family trusts. It is an alternative to using a professional trust company as the appointed trustee, and is used in cases where the settlor of the trust wishes family members to retain a degree of involvement in decisions relating to the trust. The PTC is not permitted by law to offer trustee services to the general public. A Private Trust Company operates under the provisions of the Private Trust Companies Act 2012-22.

Private Trust Companies:

Some Points to Consider;

-The board of directors of a PTC will usually include both members of the family, possibly the settlor of the trust and other immediate family, and trusted family advisers. In this way, the family can actively participate in the decisions that need to be taken by the PTC as trustee, including decisions relating to the control and management of companies owned by the trustee in a way that wouldn’t be possible if the trustee was a professional trustee company.
– In the event of any discord between the administrator and the client, the administrator of the PTC can simply be replaced without changing the actual trustee itself (which can be a protracted experience for both parties). Most importantly, the client’s chosen advisors can remain on the board of the PTC whilst a new administrator is sought.
– Due to the “closed environment” of the PTC, there is minimum risk posed to the wider business sector and law mandates that the Service Provider collect and maintain all transaction records and beneficial ownership information on its clients.
– The Settlor may be a director of a PTC. Other family members or trusted overseas advisers who are not resident may also be directors.
– A “Special Director” appointed to the Board must have training in this area and is also mandated to account for the day to day management of the PTC, as well as report any suspicious or illegal activity to the Ministry. This guarantees efficient and informed governance of the trusts for which the PTC is responsible.
– A PTC has no minimum start-up capital requirements and registration is relatively simple.

Please click here to download the PTC application form.

An Act to amend the Companies Act Cap 308 to provide for the establishment of  Incorporated Cell Companies  was enacted by the Barbados Parliament.   The Act is cited  the Companies (Amendment) Act 2016-1 and was gazetted in the February 18th 2016 edition of the  Official Gazette.

The ICC is a single incorporated entity consisting of a core and one or more separately incorporated cells created for the purpose of providing businesses with the flexibility to structure specific operations through placement in separate incorporated cells. This ensures that the risks and assets of each operation are legally separated from those within another incorporated cell.

Incorporated Cell Company: Some Points to Consider

• There can be an unlimited number of incorporated companies (called cells), each of which is treated as a separate legal entity. Each cell is considered to be a limited liability company and has its own governance structure with its own Board of Directors and officers;

• The structure also allows each cell to separate its assets, liabilities, shareholder agreements and other legal obligations from other cells within the ICC;

• All cells benefit from the lower costs associated with the shared administration of the ICC as a whole;

• The directors of a cell will be responsible for preparing accounts in respect of that cell, in accordance with the law. The ICC will be required to keep a separate record of members for each cell and to submit an annual return for each cell;

• Subject to compliance with the specific requirements of the law, cells of ICCs can be transferred to Segregated cells and vice versa. However, all cells of an ICC must be incorporated cells and all cells of a Segregated cell must be segregated cells. Therefore, on transfer, the cell must adopt the form applicable to the cell company to which it is transferred;

• Specific provisions should protect cellular assets from creditors’ claims. In particular, creditors with claims arising from cellular transactions are entitled to claim only against the cellular assets of that cell – if their claim does not arise from a cellular transaction, they will not be entitled to claim against cellular assets;

• In the event of the insolvency of a cell, this should not (in the absence of any special provisions in the articles of association subjecting the non-cellular assets to the liabilities of an insolvent cell) lead to the insolvency of the ICC. This results from the separate incorporation of each incorporated company.