AML guidenlines for international businesses

Q: Where would you find the AML compliance guideline for an international business company in Barbados?

A: The Anti-Money Laundering Guidelines and other pertinent regulatory guidelines can be found on the Central Bank of Barbados' website.

Setting up a Cosmetology School

Q: I am a Canadian citizen wishing to start a business in Barbados (along the lines of a cosmetology school). I need to know what are the legalities and procedures necessary to do so. I wish to purchase a property to house the school, are there any incentives, tax reliefs, government financial assistance for such? Lastly what would be the standard deposit for a Canadian citizen to put down if they required an offshore mortgage?

A: The establishment of a cosmetology school is not a priority business activity in the Barbados government’s plan for national economic development. Therefore there are no incentives available to this kind of business venture.

There are no restrictions to purchasing property in Barbados but there is no tax relief or government financial assistant available for so doing. Barbados is well served by the leading Canadian commercial banks, CIBC, RBC, and Scotiabank, any of them should be able to serve your needs in that regard.

You should engage the services of a local attorney for advice on establishing your business, obtaining permission to live and work in Barbados, etc.

Employment for a partner

Q: My company in transferring me from Canada to Barbados this coming Fall and my girlfriend is coming with me. Will she be able to find employment in Barbados?

A: If your company is transferring you to Barbados you will in all likelihood be granted a work permit which would allow you to live and work here legally. On the other hand, your girl friend is not likely eligible for anything more than a visitor visa, and hence she would not be allowed to work here. If, however, she has some special skill(s) required by a company for the conduct of its business, then that company can apply for a work permit on her behalf.

Bank account requirement for IBCs

Q: Are IBCs required to open an operational account with a domestic bank in Barbados before they begin operating in Barbados?

A: No, there is no requirement for an IBC to open a bank account with a domestic bank before or after they begin operating in Barbados.

What is the minimum capitalisation required for an international business company?

For an exempt insurance company the minimum capital requirement is US $125,000; for a company licensed under the International Financial Services Act: US $2 million for a company accepting third-party deposits; and US $500,00 for a company not accepting third-party deposits.

What is the corporate tax rate?

For an international business company the tax rate is between 1% and 2.5%; captive insurance companies pay 8% on the first BDS $250,000 of taxable income and zero on the balance; for domestic companies it is 25%.