Investment Opportunities
Barbados
is an ideal location for reducing manufacturing or information
processing costs, increasing profits, and benefiting from duty-free
exports to major international markets.
Among
the advantages of establishing a manufacturing facility in Barbados are:
-
15-year
tax holiday followed by 2.5% tax rate thereafter
-
Exemption
from import duties
-
Full
repatriation of capital, profits and dividends
-
Low-cost,
subsidised factory space available within 10 fully- serviced
industrial parks
-
Cash
grants for worker training
-
Cooperative
and efficient customs service
-
Free
consulting services of the Barbados Investment and Development
Corporation (BIDC)
-
Official
welcome from a government committed to private enterprise
-
Low
operating costs: savings of 40% or more
-
Literate,
skilled, trainable and productive workforce with low rates of
turnover and absenteeism
-
Economic,
political and social stability and integrity
-
Duty-free
access to the U.S.A., Canada and the E.U.
BARBADOS AS AN
INTERNATIONAL BUSINESS CENTRE
Barbados is an excellent location for international business operations and is
now considered to be one of the important centres for engaging in
business for the export of services and goods.
Investors
often feel more comfortable investing through an entity that is licensed
to carry on a particular activity with appropriate incentives and these
include the following:
-
International
Management Companies
-
International
Business Companies
-
Foreign
Sales Corporations
-
Societies
With Restricted Liabilities
-
Exempt
Insurance Companies
-
Qualifying
Insurance Companies
-
International
Trusts
The following facilities are also available:
Barbados’
tax incentives make these entities attractive to foreign investors. The
incentives include tax exemptions in the case of FSCs, foreign currency
tax credit mechanisms and low tax rates when the international export
business is conducted through IBCs, Offshore Banks, and Societies with
Restricted Liability. Such qualifying companies pay tax on a sliding
scale of 2.5% - 1% depending on the level of taxable income. Other
incentives available to such companies include exemption from
withholding tax on payments made to non-residents and exemption from
import duties and tax on capital gains.
Barbados has a well developed network of tax
and bi-lateral investment treaties. The tax treaties in force
are those with the Caribbean
Community (CARICOM), Canada, China, Cuba, Finland, Norway, Sweden, Switzerland,
The United States, The United Kingdom, Malta and
Venezuela
INSTITUTIONS, BUSINESS
DEVELOPMENT & INDUSTRY
The Barbados
Investment & Development Corporation (BIDC) is the industrial
development agency of the Barbados Government. It has special
responsibility for export promotion and for promoting and facilitating
the establishment or expansion of business enterprises in Barbados. The BIDC also administers government’s incentive programme for
industry, providing a variety of free advisory services for companies
looking to establish business entities on the island – especially in
the areas of Information Processing, Manufacturing, International
Business and Financial Services. The Barbados Investment and Development
Corporation offers additional services through its offices in New York, Miami, Toronto and London.
The agency is
organised into six divisions which through their functions effectively
make the BIDC a “one stop shop” with respect to meeting the needs of
prospective and existing business operations. Divisions focus on
International Business Development, Export Promotion, Industrial
Development, Research, Planning & Information and Small Business and
New Enterprise Development.
The Corporation’s
functions are supported by an Information Centre, stocking over 10,000
document, books and catalogues relevant to trade, exporting,
manufacturing, business development and market research. In addition,
BIDC provides operating space, project profiles, joint-venture and
contract partners, as well as advice on business opportunities in Barbados
The
transformation of Barbados from an agricultural economy to a more industrialised nation has been a
result of combined efforts from government and private sector agencies.
The Barbados Manufacturers’ Association (BMA) is the umbrella body for
the majority of local manufacturing
enterprises. The Barbados Chamber of Commerce and Industry (BCCI) is an
association of most businesses engaged in industry, commerce and trade.
Among its goals are to “work at effecting harmonious public/private
sector cooperation”.
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