Corporate Services
Front Street Corporate Management Services Ltd provides effective solutions for international corporate structures.
- International Business Companies
- Societies with Restricted Licence
- Active Business Management
- Offshore Fund Services
International Business Companies
Application for International Business Company
International Business Company Act
Companies Act
International Business Companies
International Business Companies (IBC) have a variety of uses, including holding investment portfolios for flexibility and confidentiality, to form part of an international tax & estate planning or to conduct international business. Barbados is a low tax jurisdiction and with its extensive double taxation network is an ideal location for many active business structures.
The following corporate services are provided through our associate company, Front Street Corporate Management Services Ltd:
- Incorporation and Registered Office
- Corporate Secretarial Services
- Provision of Officers and Directors
- Preparation and filing of annual returns
Corporate services are also available for other IBC jurisdictions, such as British Virgin Islands and the Cayman Islands.
Key Facts and Benefits for International Business Companies
- Special Canadian tax rules apply for IBC subsidiaries of Canadian parent companies resulting in the ability to dividend net revenue back to the parent on a tax free basis if the revenue qualifies as ‘exempt surplus’ – i.e. resulting from active business operations
- No minimum capitalization requirements
- Confidentiality of company records
- Corporate Tax rates are based on a sliding scale from a maximum of 2 ½ % to a minimum of 1 %
- No Capital Gains tax
- No Barbados withholding taxes on payments to non-residents of Barbados and other IBC’s
- Exemption from foreign exchange controls
- Tax credit allowance for taxes paid outside of Barbados (but may not reduce tax to less than 1%)
- Books & records may be kept in any currency
- Access to multi-jurisdictional double taxation agreements
- Exemption from custom duties on goods imported for business use
- Personal tax exemptions for specially qualified ex-patriate employees
- The maximum shareholding by local and/or Caricom residents may not exceed 10% of issued shares and the IBC is restricted from conducting business in Barbados or the Caricom area
Societies with Restricted Licence
Application for a Society with Restricted Licence
Societies with Restricted Liabilities Act
Societies with Restricted Liabilities Regulations
Societies with Restricted Licence
A Society with Restricted Licence (SRL) is treated as a corporate entity in Barbados, however it is similar in many respects to limited liability companies in civil law jurisdictions that provide flexibility for international structuring utilizing the bilateral tax treaties Barbados has entered into with various countries. In the United States an SRL can qualify as a partnership for US tax purposes, providing further benefits. An SRL may be either Exempt, which is mainly used for International transactions, or Non-Exempt, allowing it to conduct business in Barbados. Front Street Corporate Management Services Ltd provides the necessary services for the formation and administration of an SRL.
Key Facts and Benefits of Societies with Restricted Liabilities
- Limited liability
- Non-Exempt SRL’s are taxed at regular Barbados corporate tax rates and may conduct business within Barbados
- Exempt SRL’s have the same tax and other benefits allowed for IBC’s
- The members of an SRL may elect to have the SRL treated as a partnership for US tax purposes
- The maximum duration for an SRL is 50 years
- No limit on shareholding by Barbadian residents
Active Business Management
The philosophy of Front Street Private Bank is to provide customized and personalized service through a team of dedicated key employees with extensive experience in the offshore financial industry, including investments, insurance, finance and corporate services.
As an extension of the basic corporate services provided by Front Street Corporate Management Services Ltd, additional active business services are provided. Barbados is a particularly attractive jurisdiction for Canadian companies setting up an IBC to conduct international non-Canadian business activities. This could include manufacturing, the sale of products or licences and the provision of services. If properly structured, net business income will qualify as Exempt Surplus under Canadian tax rules, which will allow the income to be repatriated up to the Canadian parent on a tax free basis.
We can provide the assistance in setting up an effective structure and provide the necessary services, including the following:
- Provision of office space & facilities
- Administrative functions
- Holding board meetings & preparation of minutes
- Accounting & financial statement preparation
- Banking arrangements
- Cash & treasury management
- Preparation of annual returns
Offshore Fund Services
Structuring offshore funds is something that Front Street Private Bank is very familiar with through our own suite & management of offshore funds. We can provide a variety of consulting services for asset managers seeking to set up offshore funds in jurisdictions such as the Cayman Islands or the British Virgin Islands, which are recognized as leading offshore fund centers. Front Street Private Bank can assist with guidance on effective offshore structures, introductions to offshore legal services & fund administrators, provide guidance on fee and other cost estimates and documentation requirements.
Offshore fund structuring can mesh very well with other services provided by Front Street Private Bank and Front Street Corporate Management Services, including investment custody, brokerage and corporate services for active business management. For example, it may be beneficial to structure a Barbados IBC to operate as the Fund Manager.