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BARBADOS INTERNATIONAL BUSINESS COMPANIESA Guide for business executives involved in International Business and InvestmentActivities

PricewaterhouseCoopers (www.pwc.com) is the largest professional service firm in theworld. We provide industry-focused assurance, tax, advisory and corporate servicesfor private and public clients, helping them to build value, manage risk and improveperformance.

Across the Caribbean, the PricewaterhouseCoopers network provides a fully integratedrange of professional services to local, regional and international clients from officeslocated in Antigua, Aruba, the Bahamas, Barbados, the British Virgin Islands, theCayman Islands, Curacao, Grenada, Jamaica, the Dominican Republic, Puerto Rico,St. Lucia, St. Maarten, Trinidad & Tobago, the Turks & Caicos Islands and the U.S. Virgin Islands.

pwc 1BARBADOS INTERNATIONAL BUSINESS COMPANIES

Table of Contents

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2

PricewaterhouseCoopers in Barbados and the East Caribbean . . . . . .3

Why Barbados? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

Establishing an International Business Company . . . . . . . . . . . . . . . . .6

Start-up and ongoing operational costs . . . . . . . . . . . . . . . . . . . . . . . . .7

THE ISLAND OF BARBADOS

n Integrity and Professionalism . . . . . . . . . . . . . . . . . . . . . . . .9

n Geography, Climate and Population . . . . . . . . . . . . . . . . . .10

n History . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12

n Politics, Government and Judiciary . . . . . . . . . . . . . . . . . .13

n Economy, Trade and Industries . . . . . . . . . . . . . . . . . . . . . .14

n Money, Banking and Finance . . . . . . . . . . . . . . . . . . . . . . . 16

n Transport and Communication . . . . . . . . . . . . . . . . . . . . . . 17

n Infrastructure and Social Environment . . . . . . . . . . . . . . . 18

Appendices

I. Key Legal Requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22

pwc BARBADOS INTERNATIONAL BUSINESS COMPANIES2

Introduction

With a long history of political and economic stability and commitmentto free enterprise, Barbados has developed into a major domicile forinternational business within the Eastern Caribbean.

This guide has been prepared by PricewaterhouseCoopers East Caribbean. It provides

background information to help business executives evaluate the advantages of

establishing an International Business Company in Barbados.

Executives who are already planning to establish an international business company here,

or who wish more detailed information on the process or about specific issues, are urged

to contact one of the following partners with responsibilities for international business:

Wayne Fields, Marcus Hatch, Charles Tibbits, Gloria Eduardo or Ashley Clarke.

Contact information:

PricewaterhouseCoopersThe Financial Services CentreBishop’s Court HillP.O. Box 111St. MichaelBarbados, W.I.

E-mail: first name.last [email protected]

Tel: (246) 436-7000 Fax: (246) 436-1275

PricewaterhouseCoopers in Barbados and the East Caribbean

Through its legacy firms, PricewaterhouseCoopers has roots inBarbados that go back to the 1860s. Officially known asPricewaterhouseCoopers East Caribbean, the partnership isheadquartered in Barbados with practices in Antigua, St. Luciaand Grenada.

Through its Corporate Services Division, which is managed by AbacusManagement Services Ltd., the firm provides a complete range of services toforeign investors seeking to establish an International Business Company inBarbados.

These include:

n Arranging incorporations, registration of external companies andcompany liquidations.

n Preparing the application for the IBC licence and attendingdiscussions with the Ministry of Industry and International Businessfor the granting of the licence.

n Providing a registered office and a company secretary, andnominating local directors.

n Maintaining statutory records, acting as a company registrar anddividend payment agent; filing statutory returns and generallykeeping the company in good standing.



Why Barbados?

Already renowned as one of the premier holidaydestinations in the Caribbean, and recognized by theUnited Nations as among the top developing nations inthe world, Barbados also enjoys a well deservedreputation for integrity as an international business centre.

Over the past 30 years, successive governments have painstakingly built a highly attractive environment for foreign investment and internationalbusiness. In addition to offering attractive tax concessions and incentives,the island has established a network of tax treaties with several countriesincluding the USA, Canada, The UK, Switzerland and China.

Indeed, Barbados has continually enacted – and refined – legislation thatmakes the country a highly respected domicile not only for InternationalBusiness Companies but also for:

n Exempt Insurance Companies

n Qualifying Insurance Companies

n International Banks

n International Societies with Restricted Liability

n International Trusts

n Mutual Funds

Barbados has excellent international telecommunications links and iseasily accessible by frequent scheduled flights from the United States,Canada, Britain and Europe. In addition, the island is home to a well-educated and skilled population and enjoys a well-developedinfrastructure and a sophisticated level of services.

Underlying legislation for International BusinessCompanies

A company incorporated or registered in Barbados may be licensed as anInternational Business Company in Barbados under the InternationalBusiness Companies Act, Cap. 77.

Key Incentives

Here is some of the key tax and other incentives offered under theInternational Business Companies Act, Cap. 77:

n Tax on income on a sliding scale, from a maximum of 2.5% toa minimum of 1%.

n A tax credit in respect of taxes paid outside of Barbados, butonly insofar as it reduces the tax payable in Barbados to aminimum of 1%.

n Exemption from all withholding taxes on payments to personsnot resident in Barbados.


n No capital gains tax or estate duty.

n Freedom from exchange control regulations.

n Books and records may be kept in a foreign currency.

n Guarantee of benefits and exemptions for a period of 15 years.

n No minimum capital or “thin capitalisation” required.

n Provisions for inward and outward re-domiciliation.

n Access to the country’s tax treaty network.

n Convention expenses allowed by US tax authorities.

n Modern and flexible corporate legal framework.

n Branch operations may benefit from IBC status.

n Income tax concessions for specially qualified employees.

n The sale of foreign real estate or investments, and the transferof equity in an IBC are not subject to local transfer taxes andstamp duty.

n An IBC may import, free from all customs duties, machinery ormaterials for use in its business. A zero tax rate applies toIBCs that are wholly owned by a trust established andmanaged in accordance with the International FinancialServices Act, 2002.

Restrictions/Requirements

n Audited financial statements, where required, must be filed withthe Ministry of Industry and International Business on an annualbasis instead of the Registrar of Companies.

n Bearer shares are not permitted.

n A company licensed as an IBC cannot provide goods orservices to residents of Barbados.

n A company licensed as an IBC must maintain a local registeredoffice in Barbados.

n A company licensed as an IBC must file a corporate tax returnannually.

Principal internationaltax planningconsiderations

n Canada – As a result ofBarbados being a “designatedtreaty country”, an “active”international business inBarbados may remit dividendsto Canada out of its exemptsurplus. These dividends areexcluded from the taxation of aCanadian corporate investor.Popular intra-group uses of anIBC in this regard include atrader of Canadian-manufactured goods, a holdingcompany to “trap” foreigndividends offshore for aCanadian parent company, andsupplying funds for certain intra-group financing arrangements.(For this purpose, passiveincome may also berecharacterised as “active”.)

n United States – The tax treatywith the US contains aLimitation on Benefits (LOB)provision that is now standard inall of the tax treaties to whichthe US is party. The purpose ofa LOB provision is to prohibit anon-treaty taxpayer frombenefiting from the favourableaspects of the treaty.Notwithstanding this limitation,planning opportunities still existfor achieving economic benefitson outbound investments.

n Switzerland – The 1954UK/Swiss treaty still applies toBarbados by way of extension.A Swiss branch of a BarbadosIBC is not subject to Swisswithholding tax on certainactivities.


Establishing an International Business Company

An International Business Company (IBC) is defined as acorporation that:

n Is resident in Barbados.

n Carries on a trade of buying or selling goods and services that existoutside of, and do not originate in, Barbados.

n Carries on a trade of selling services to non-Barbados residents.

n Carries on a trade of manufacturing products exclusively for exportoutside of Barbados.

n Is licensed under the International Business Companies Act, Cap. 77.

Any person or business seeking to establish an IBC in Barbados must firstincorporate a company under the Companies Act, Cap. 308 (See Appendix I)and then obtain permission from the Minister of Industry and InternationalBusiness in the form of a licence, to carry on an international business.

Among other requirements, an application for the issue of a licence must statethe general nature of the international business the company proposes toconduct, and it must be accompanied by a declaration that the requirements ofthe International Business Companies Act, Cap. 77 have been satisfied. Inaddition, full details of shareholders and directors, including the resumes ofdirectors, must be supplied to the Minister.


Start-up and ongoing operational costs

Estimated start-up costs for an International Business Company (inUS dollars):

Government FeesIncorporation $ 390Application for licence 250

Professional Fees (minimum)Incorporation (inclusive of legal fees) 2,850Corporate retainer (first year) 1,500Disbursements (estimate) 260

$ 5,250

Independent local resident director – if required(minimum)

$ 1,500

Estimated recurring costs are as follows (in US dollars):Preparing and filing annual returns $ 500and licence renewalGovernment fee for annual returns 50Government licence fee for licence renewal 250Retainer fee 1,500

$ 2,300

Local director (minimum fee) $ 1,500

The Island of BarbadosAn ideal environment for international business


Barbados has tax treaties with the following countries:

NOTE: To review the entire International Business Companies Act andother laws pertaining to international business, please visit the website ofthe Ministry of Industry and International Business at:www.barbadosbusiness.gov.bb

Integrity and Professionalism

For the past 30 years, successive governments in Barbados havediligently constructed a framework of legislation designed toencourage foreign investment and establish the island as a leadinginternational business centre in the Caribbean.

Today, Barbados is a highly respecteddomicile for such entities asInternational Insurance Companies,International Business Companies,International Banks, Societies WithRestricted Liability, InternationalTrusts, and Mutual Funds.

Throughout the process of enactingand refining the laws governinginternational business, the countryhas rigorously safeguarded itsreputation for integrity, respondingquickly to such international concernsas money laundering and lack oftransparency.

Indeed, while offering a low-taxenvironment to internationalbusinesses, Barbados has, from thevery beginning, chosen to establish ahigh level of transparency and acooperative approach to sharinginformation sharing with taxauthorities in other countries.

Professional Services

The island provides an excellent rangeof professional services – and highlyskilled professionals – to meet the needsof the international business sector. The legal profession is well establishedin Barbados, with many law firms thatspecialise in corporate and internationalbusiness law.

All of the major international accountingfirms are represented through localpartnerships, offering assurance, tax,advisory and corporate services. Thereare several independent managementcompanies on the island that alreadyhandle the business of scores ofInternational Insurance Companies.

n The United Statesn Canadan The United Kingdomn Chinan Cuban Finlandn Norway

n Swedenn Switzerlandn Venezuelan The territories that

comprise the CARICOM Single Market andEconomy


Geography

Barbados is the most easterly ofthe Caribbean Islands. Essentially a “coral” island, with an area of 166 square miles, it is situatedapproximately 1600 milessoutheast of Miami, Florida. The island is easily accessible byfrequent scheduled flights fromMiami (3.5 hours), New York City(4.5 hours), Toronto (5.5 hours),and London or Brussels (8 hours).

Climate

Barbados has a tropical climateand relatively high averagetemperatures and humidity.However, these conditions aremoderated by the cooling effect of strong North East trade windsthat blow over the island.

Temperatures during the day rarely exceed 30C (86F). During November though March,conditions tend to be a fewdegrees cooler, while the months of July through October aregenerally more humid and wet.

Population

The resident population of theisland is approximately 270,000.Approximately 94% of Barbadiansare of African descent, with theremainder being of Europeandescent and other nationalities.

When segmented by age, 24% of the population is under 15, with 64% between the ages of 15and 64. The remaining 12% areover 65.

Geography, Climate and Population

Top: the island’s East Coast is noted for its rugged beauty and Atlantic swells.Bottom: The West Coast is famous for its crystal-clear waters, fine sandbeaches and luxury accommodation.


Barbados is the most easterly of the Caribbean islands, situated about 1600 miles southeast of Miami, Florida.


The Europeans knew about theexistence of Barbados since the16th century. However, the islandwas not settled until 1627 when agroup of Englishmen established aformal colony and planted tobaccoand cotton for export to England.After 1645, these crops werereplaced by sugar cane, whichfostered the development of theplantation system.

From early on, Barbados enjoyedtrading relationships and other ties with the United States and later Canada. In 1670, Barbadianimmigrants helped to found theState of South Carolina and itscapital city of Charleston. What is more, Barbados bears thedistinction of being the only countryoutside of the United States evervisited by George Washington whocame to the island in 1752.

Since the abolition of slavery in1834, the descendants of Africanslaves who were brought toBarbados to underpin theplantation system have developedinto a thriving and industriouspopulation.

In 1966, after almost 350 years ofunbroken British colonial status,Barbados became a fullyindependent sovereign nation. The island is English-speaking andhas remained a member of theBritish Commonwealth.

History

Archaeological evidence shows that the Arawaks, apeople indigenous to the Orinoco River area of Venezuela,inhabited Barbados from around 600BC. They were laterdriven out by the Caribs, who also migrated north from thesame area but who did not settle on the island.

Carved by aBritish armyofficer stationedon the island, thisstone lion is areminder ofBarbados’colonial past.

The Corp ofDrums of theBarbadosDefence Forcewear uniformsthat date back to Victorian times.


Politics

An independent country sinceNovember 30, 1966, Barbados isnoted for its high level of political,economic and social stability, aswell as for the integrity of itsinstitutions. The country operatesas a well developed democracywith open elections held every fiveyears. There are two main politicalparties, the Barbados Labour Partyand the Democratic Labour Party.Elections are hotly contested, butare notably free of violence andcorruption.

Government

Barbados enjoys a parliamentarystyle government, with a House ofRepresentatives and a Senate. The island’s first Parliament wasestablished in 1639, making it thesecond oldest in the WesternHemisphere.

The function and powers of theGovernment are vested in Cabinet,presided over by the PrimeMinister. Senators are appointed:12 by the Government, two by theofficial Opposition, and seven“independents” on therecommendation of the GovernorGeneral who is the Queen’srepresentative and Head of State.

Judiciary

The legal system of Barbados isbased on English Common Law asmodified by Statute to meet localrequirements. The members of thejudiciary, in performing their judicialacts, are completely independentof the executive and legislativefunctions of Government.

Politics, Government and Judiciary

Top: The Parliament Buildings in Bridgetown – home to the second oldestparliament in the Western Hemisphere.

Bottom: Mounted police in full ceremonial uniform.


In 2003, the country’s GrossDomestic Product (excluding netindirect taxes) was approximatelyBDS$4.4 billion. That same year,exports amounted to BDS$500million, while imports totalledBDS$2.39 billion. Domestic exportsconsist mainly of sugar and its by-products rum and molasses,chemicals, clothing, furniture,electrical components and cement.

Consumer goods, mostly food andbeverages, account for the majorityof the island’s imports – BDS$915million in 2003. That same year,intermediate goods and capitalgoods such as machinery for use in agriculture and manufacturing,accounted for BDS$2.26 billion ofthe island’s import bill.

Based primarily on sugar until the1970s, the island’s economy nowhas four key productive industries:tourism, agriculture, manufacturingand international business.

Tourism

Tourism continues to play a key rolein the economy and has a positive“spin-off” impact on virtually all otherbusiness sectors. Currently, thisindustry accounts for about 11% ofthe employed labour force and is thecountry’s principal foreign exchangeearner. For example, in 2003, thegross annual earnings from tourismwere approximately BDS$1.46billion. The island attractsapproximately one million visitorseach year, with an almost equal splitbetween long stay visitors and cruiseship passengers.

Economy, Trade and Industries

Barbados embodies an open, small, free enterpriseeconomy. A Value Added Tax on consumption,implemented in 1997, has enabled the country to reduceits dependence on import tariffs and duties as a source ofrevenue, and also to improve compliance with WTO rules.

Top: St. Lawrence Gap, on the vibrant South Coast – heart of the island’snightlife.

Bottom: This modern distillery produces fine rums for which Barbados isfamous.


intensive products that use moderntechnology. Electronics, medicalequipment and informationprocessing are areas of particularinterest. In recent years, the islandhas been attracting a growingnumber of call centres.

Agriculture

While the production of sugar is stillimportant to the island’s ability toearn foreign exchange, theGovernment’s policy in agriculturehas been to reduce dependence

Manufacturing

The manufacturing sector inBarbados accounts forapproximately 7% of the island’semployed labour force and includesfood and beverages (especiallysugar and rum), electronics,hardwood furniture, garments andchemicals.

The country continues to welcomeinvestment in the manufacturingsector, especially for the productionof higher value-added, skills-

Barbados Gross Domestic Product (2003)

on this commodity and toencourage diversification, especiallyin vegetables, poultry, livestock and fishing. The island is virtuallyself-sufficient in pork, poultry, freshmilk and vegetables.

International BusinessThis sector, which has steadilydeveloped since 1977, nowcontributes significantly to theisland’s foreign exchange earningsand provides employment forapproximately 3,000 Barbadians.Some unofficial estimates put thesector’s contribution to thecountry’s GDP at about 7.5%.

Primary Resources

Other than substantial limestonedeposits that are mined and usedto produce cement and other lime-based products, Barbados doesnot have an abundance of naturalresources. However, the countrydoes have some oil and natural gasdeposits that have been accessedto reduce dependence on outsidesources. In 2003, approximately22.4 million cubic metres of naturalgas were sold, and 371,000 barrelsof crude oil produced. Local crudeoil production meets about half thedomestic requirements.

Local crude oil production meets about half the islands domestic requirements.


Exchange control

Barbados has exchange controlregulations, although these are beingloosened over time. However,international businesses, includingExempt Insurance and QualifyingInsurance Companies, are exemptfrom these exchange regulations.

The Central Bank ofBarbados

Barbados has had a Central Banksince 1973. The main role of theCentral Bank is to act as banker,fiscal agent and financial advisor to the Government, and to monitorand regulate the activities ofcommercial banks and otherfinancial institutions. It also has aduty to promote monetary policiesand exchange policies thatencourage economic growth.

Commercial Banks andFinance Companies

The banking system in Barbados iswell established, and the island hasa competitive commercial bankingsector. The commercial bankscurrently operating here include:First Caribbean International Bank(a regional combination of BarclaysBank and CIBC Caribbean), RoyalBank of Canada, Bank of NovaScotia, Barbados National Bank(majority owned by Republic Bankof Trinidad), Bank of Butterfield &Sons, and Caribbean CommercialBank (wholly owned by Royal Bankof Trinidad & Tobago).

Money, Banking and Finance

Barbados has been a member of the InternationalMonetary Fund since 1973. The Barbados dollar is backed by gold and foreign assets, which havepromoted stability and confidence in the currency.Since 1975 the country’s dollar has been fixed atBDS$2.00 to US$1.00.

There are also several financecompanies operating in Barbados.Apart from collecting deposits,these companies complement the commercial banks in financingthe purchase of constructionequipment, motor vehicles andother consumer durable goods.

Domestic Insurance

Barbados has a highly developeddomestic insurance industry.Placement of insurance throughbrokers is commonplace.

Top: The Tom Adams Financial Centre, named after the island’s second primeminister, is home to the Central Bank of Barbados.

Bottom: This elegant building is the head office of FirstCaribbean InternationalBank.


Airport

Voted the “Best Caribbean Airport”at the World Travel Awards for 2003,the Grantley Adams InternationalAirport is located in the south of theisland, about 30 minutes from thecapital of Bridgetown. The airport isserviced by major internationalairlines, including American Airlines,American Eagle, Continental, USAirways, Air Canada, Air Jamaica,British Airways, BWIA and VirginAtlantic. These airlines providedirect links to major cities such asMiami, New York, Newark,Philadelphia, San Juan, Washington,Toronto and London. The GAIA is amajor “hub” for several regionalairlines that connect the EasternCaribbean with frequent flights daily.

Port facilities

Located on the edge of the City, theBridgetown Port is one of the mostmodern in the Caribbean. The portprovides container handling andberthing facilities for ocean-goingfreighters and passenger shipsincluding the world’s major luxuryliners, several of which now use theBridgetown Port as their “homeport”for Caribbean cruising in the SouthCaribbean.

Postal, Courier andTelecommunicationServices

The Post Office Department providesspeedy and reliable domestic andinternational mail services on a dailybasis to all parts of the island. Thereare 17 post offices that are openfrom 8:00 a.m. until 3:00 p.m.,Monday through Friday. Expresspost is available to certain countriesthrough the Post Office Department,and there are a number of privatecouriers including Federal Express,DHL and UPS.

Barbados has excellenttelecommunications links, withdirect-dial available to all worlddestinations. Businesses areoffered the latest in communicationstechnology, and many use theInternet to provide information ontheir products and services.Currently, there are threetelecommunications companies onthe island providing cellular phonesservices: including Cable & Wireless,Digicel, and AT&T Wireless.

Transport and Communication

News Media

There are two English languagenewspapers, a television stationand several radio stations thatprovide local, regional andinternational news. Internationaleditions of major foreignnewspapers (from North Americaand the UK) are also available on adaily basis. Also, two satellite linkedcable television services providesubscribers with access to a widerange of international programming.

Top: Barbados enjoys excellent telecommunications links with the rest of theworld.

Bottom: The island is also served by a modern deep water port.


Infrastructure and Social Environment

Barbados is one of the most highly developed small countries in the world.The United Nations Development Programme (UNDP) has ranked Barbadosas No.1 on its Human Development Index in the Caribbean and LatinAmerica. In its development, Barbados is also outperforming all of Africa,and all of Asia with the exception of Hong Kong, Singapore, Japan andSouth Korea.

The country’s high level ofdevelopment is reflected in itsinfrastructure and socialenvironment.

Health Services

The Queen Elizabeth Hospital,situated on the outskirts ofBridgetown, accommodates 600patients in private and generalwards. There is also the BayviewHospital, which is privately ownedand accommodates 24 patients.There are also several well-equipped private clinics, healthcentres and nursing homes. The psychiatric hospital enjoys agood reputation.

Barbados enjoys a high standard ofmedicine and health services overall.Dental and optical services are readilyavailable, and the Medical Registerlists specialists trained in the UnitedKingdom, Canada and the UnitedStates.

Education

Barbados has an exceptionallygood educational system thatcomprises free primary, secondaryand tertiary levels of education.The literacy rate on the island isapproximately 97%.

One of the campuses of theUniversity of the West Indies issituated in Barbados. Theuniversity’s Department ofManagement Studies together --with the affiliated Centre for

Top: The Sherbourne Conference Centre – one of the most modern facilitiesof its kind in the Eastern Caribbean.

Bottom: Student residences on the Cave Hill campus of the University of theWest Indies.


Management Development providemany of the graduates for thecountry’s domestic corporatesector, professional services firms,and international business sector.

Barbados also has a communitycollege, a teachers’ training college,a theological college, a hospitalityinstitute and a polytechnic.

Housing

Barbados has well developedresidential areas, and high qualityhousing for executives is availablefor sale or rent in many locationsacross the island.

Water

Barbados enjoys crystal cleardrinking water throughout theisland. Its primary source isunderground springs, filteredthrough coral, and these aresupplemented by the output from a newly completed desalinationplant.

Electricity

The Barbados Light & PowerCompany provided a highly reliableelectricity service throughout theisland. Domestic current willoperate appliances designed for110 volts AC, 50-cycle supply. A 220-volt supply is also availableto industrial and domestic users.

Roads

Barbados is criss-crossed by anextensive network of paved roads, including a trans-islandhighway that links all of the maintransportation arteries. Driving ison the left-hand side of the road.

Office Space

Good quality, air-conditioned officespace is available in Bridgetown orin several purpose-built officecomplexes on the outskirts of thecity. Lease arrangements can benegotiated at reasonable rates.

Top: High quality executive housing is available for sale or rent in many partsof the island.

Bottom: Good quality, modern office space is available in several purpose-built complexes on the outskirts of the city.


Hotel Accommodation

In keeping with its reputation as ahigh-end tourism destination,Barbados has well-run hotels ofinternational standards. Theseinclude a newly reconstructedHilton, The Fairmont Hotels’ RoyalPavilion, and Sandy Lane Resort,recognized as one of the finestfacilities of its kind in the world.Other smaller but excellent qualityhotels include Coral Reef, ColonyClub, Glitter Bay Resort, CobblersCove and The Crane PrivateResidence Resort. In all,accommodation in Barbados,including luxury hotels, villas,guesthouses, and rental apartments,totals just over 8,000 rooms.

Many of the larger hotels offerconference facilities, as does the

Sherbourne Conference Centre, apurpose-built facility on the outskirtsof Bridgetown.

Restaurants and Nightclubs

Barbados has dozens ofrestaurants, many of which areworld-class in standard. In additionto these restaurants, there areseveral excellent private firms thatcater for receptions. The island hasan active nightlife, particularly onweekends, and there severalnightclubs offering live bands as wellthe latest in international music.

Sports and RecreationalActivities

Barbadians are a sports-lovingpeople, and while cricket remains

the national “passion, sports ofevery kind are played on the island,including basketball, volleyball, fieldhockey, soccer, tennis, squash andgolf. Horse racing and polo are alsowell established on the island andamong the leading spectator sports.A national stadium and agymnasium are used throughout theyear to host field athletics, cyclingand other well attended sportingevents.

Barbados has gained increasingprofile in recent years as a golfingdestination. There are five golfcourses on the island: two 18-holecourses at Sandy Lane, which havebeen recently designed by TomFazio; the luxurious 18-hole courseat Royal Westmoreland, designedby Robert Trent Jones; the 18-hole

Horseracing is a well-established and popular sport on the island.


There are several world-class golfcourses on the island.

Polo has become increasinglypopular, and there are currently fourpolo fields on the island.

course at Southern Golf andCountry Club; and the 9-hole courseat Rockley Resort, which is theoldest course on the island.

The water and coral reefssurrounding Barbados are theisland’s greatest natural attraction.There are a number of traditionalwater sports activities includingsailing, surfing, deep-sea fishing,scuba diving and snorkelling.

Festivals

Barbados celebrates the nationalfestival of Crop Over during the

month of July. It is a festival ofmusic, art and dance, andexotically costumed Barbadianstake to the streets in thethousands during the final paradeknown as “Kadooment”.

In March, the Annual HoldersOpera Season offers the musicand theatre of local andinternational performers, andattracts visitors from around theworld.

Appendix - Key Legal Requirements

International Business Companies must incorporate in Barbados under the

Companies Act, Cap. 308, which is modelled on the Canada Business

Corporations Act. Here are some of the key requirements of this and other

legislation:

Company formation and registration of branchesIncorporation is achieved by filing Articles of Incorporation and paying a fixed

fee of US$390. A licence to carry on an international business must then be

obtained from the Ministry of Industry and International Business for a fee of

US$250. A company may undertake any business, unless its Articles

circumscribe its activities. Certain activities are restricted by the International

Business Companies Act, Cap. 77 or by other local statute, such as banking

or insurance. By virtue of the Companies Act, Cap. 308, companies are

empowered to adopt pre-incorporation contracts. Corporate mobility in and

out of Barbados is allowed.

In addition to achieving IBC status through company formation in Barbados,

external companies may alternatively establish a local branch by registering

under the Companies Act and then apply for an IBC licence.

Tax returnsIBCs must file annual corporate tax returns and financial statements in the same

manner as local companies. Those with year-ends prior to September 30th

must file by the following March 15, all others by the following June 15th.

Corporation taxes must be prepaid at prescribed dates.

CapitalA company need only have one shareholder. There is no legal minimum capital

requirement and no stamp duty on capital. Shares have no nominal or par

value, and may not be issued until fully paid for. A company may purchase and

cancel its own shares provided it is solvent. Companies may amalgamate and

mutual companies are allowed.

ManagementA company need only have one director, who need not be a Barbados resident.

Directors’ duties and liabilities are expressly stated in The Companies Act, Cap.

308. The power of directors may be limited via unanimous shareholders’

agreements and by-laws. Minutes of all meetings and written resolutions in lieu

thereof of directors and shareholders must be maintained at the registered office

in Barbados. Alternate directors are permitted.


Meetings and votesDirectors may conduct their business by physical meetings within our without

Barbados, by unanimous written resolution, or via teleconference. An annual

meeting of shareholders is required, at which shareholders may be represented

by proxies. Fundamental changes to the company’s Articles require two-thirds

majority approval of the shareholders. Minutes and resolutions of the

shareholders must be maintained at the registered office in Barbados.

Accounting and AuditingAdequate accounting books and records must be maintained in Barbados, and

a qualified local auditor appointed. Accounting and auditing standards are

prescribed by the Institute of Chartered Accountants of Barbados. Audited

financial statements must be filed with the Ministry of Industry and International

Business annually.

Renewal of LicencesAn IBC licence must be renewed annually. A renewal form together with a fee

of US$250 must be submitted to the Ministry of Industry and International

Business on or before December 31 of the year preceding the year for which

renewal is sought. Failure to do so will result in monetary penalties. Failure to

apply before February 1 of the relevant year will result in cancellation of the

licence, and application for a new licence will be necessary.


© 2005 Copyright PricewaterhouseCoopers

"PricewaterhouseCoopers" refers to the network of member firms of PricewaterhouseCoopers International Limited, eachof which is a separate and independent legal entity.

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