Advan­tages and Incen­tives of Oper­at­ing a Busi­ness in Barbados

Business in Bim
Bar­ba­dos is a haven of a tourist attrac­tion for many inter­na­tional and regional vis­i­tors. How­ever, it is also an island that has attracted numer­ous busi­ness per­sons due to the var­i­ous advan­tages and incen­tives of oper­at­ing a busi­ness on the island. This arti­cle will dis­cuss these incen­tives and advantages.

Bar­ba­dos is noted as an Inter­na­tional Busi­ness Cen­ter of choice, and has attracted for­eign direct invest­ment from Canada and the USA espe­cially, for the past few decades. Bar­ba­dos is the ideal place to invest, as com­pa­nies can thrive in a highly com­pet­i­tive global mar­ket­place by set­ting up shop here. Some of the advan­tages to set­ting up a busi­ness in Bar­ba­dos include its busi­ness friendly envi­ron­ment, strong human cap­i­tal, high qual­ity infra­struc­ture, tax advan­tages, invest­ment pro­tec­tion and a good qual­ity of life. Bar­ba­dos is also an excel­lent place for investors and busi­ness oper­a­tors to reduce man­u­fac­tur­ing and pro­cess­ing costs, and to take advan­tage of duty free options, thus increas­ing busi­ness prof­its as a result.

Fur­ther Break­down of Advan­tages
Some of the key advan­tages to oper­at­ing busi­ness in Bar­ba­dos, as stated by Invest Bar­ba­dos are given below:

  1. Bar­ba­dos is OECD Approved – The OECD in 2009 rec­og­nized Bar­ba­dos as the only inde­pen­dent Caribbean nation that has imple­mented the inter­na­tion­ally agreed tax standard.
  2. Excel­lent Human Resources – Bar­ba­dos has a world class edu­ca­tional sys­tem and a highly skilled Eng­lish speak­ing work force.
  3. Qual­ity of Life – the qual­ity of life Bar­ba­dos affords its res­i­dence, makes it a very attrac­tive place to work, live and to raise a fam­ily. The island also pro­vides qual­ity health care, edu­ca­tional ser­vices and good stan­dard of living.
  4. Mature Juris­dic­tion – Bar­ba­dos is very expe­ri­enced in the area of inter­na­tional busi­ness, as it has been a choice for inter­na­tional busi­nesses since the 1960s.
  5. Busi­ness friendly – Bar­ba­dos offers a great envi­ron­ment for busi­ness. It also has trans­par­ent poli­cies and effec­tive laws, and the strong legal sys­tem ensues that prop­erty rights are well protected.
  6. Expand­ing treaty net­work – one of the major ben­e­fits of oper­at­ing a busi­ness in Bar­ba­dos is its inter­na­tional tax agree­ment with mul­ti­ple part­ners includ­ing tra­di­tional and emerg­ing economies in Amer­i­cas, Europe, Asia and Africa.
  7. Polit­i­cal, Social and Eco­nomic Sta­bil­ity – Three fac­tors con­tribute to this sta­bil­ity: hav­ing the 3rd old­est par­lia­ment in the British Com­mon­wealth, a long stand­ing tra­di­tion of par­lia­men­tary democ­racy and the pru­dent man­age­ment of the economy.
  8. Low Taxes – Busi­nesses seek­ing to oper­ate in Bar­ba­dos have many tax advan­tages, includ­ing low rates of cor­po­rate tax.
  9. Well Reg­u­lated – a clear and strong leg­is­la­tion in Bar­ba­dos ensures strict guide­lines for good gov­er­nance in busi­ness, which are then enforced by the reg­u­la­tors in each sector.
  10. Glob­ally Com­pet­i­tive –a con­sis­tently high rank­ing in areas of social, eco­nomic and finan­cial global indices con­firms the capa­bil­ity of the Bar­ba­dian envi­ron­ment to pro­vide a sound place for set­ting up a business.

Other Key Advan­tages and Incen­tives include:

  • Exemp­tion from import duties.
  • 10-​year tax hol­i­days (and 2.5% tax rate thereafter).
  • Full repa­tri­a­tion of prof­its, div­i­dends and capital.
  • Free con­sult­ing ser­vices offered by the Bar­ba­dos Invest­ment and Devel­op­ing Cor­po­ra­tion (BIDC).
  • Low-​cost, sub­si­dized fac­tory space avail­able within 10 fully-​serviced indus­trial parks.
  • Cash grants for worker training.
  • Coop­er­a­tive and effi­cient cus­toms service.
  • Offi­cial wel­come from a Gov­ern­ment com­mit­ted to Pri­vate Enterprise.
  • Low oper­at­ing costs (sav­ings of 40% or more).
  • Duty-​free access to the U.S.A., Canada and the E.U.

There are also some spe­cial incen­tives offered to spe­cific busi­ness areas inclu­sive of but not lim­ited to the following:

Infor­ma­tion Tech­nol­ogy Ser­vices Sector

  • Spe­cial tax rate of 2 1/​2% on net profits.
  • Full exemp­tion from import duties on pro­duc­tion related equip­ment such as computers.
  • Full and unre­stricted repa­tri­a­tion of cap­i­tal, prof­its and dividends.
  • Sub­si­dized office space avail­able for rental in fully ser­viced indus­trial parks.
  • Train­ing grant of US $50.00 per employee per week dur­ing the first 18 months of operation.

Man­u­fac­tur­ing and Pro­duc­tion Industries

  • Up to ten years’ exemp­tion from taxes on Cor­po­rate profits.
  • 2 1/​2% tax rate for export indus­tries thereafter.
  • Exemp­tion from import duties on parts, raw mate­ri­als and pro­duc­tion machinery.
  • Expe­dited cus­toms clear­ance procedures.
  • Full and unre­stricted repa­tri­a­tion of cap­i­tal, prof­its and dividends.
  • Sub­si­dized fac­tory space in well planned and fully ser­viced indus­trial parks.
  • Train­ing grant of US $50.00 per employee per week dur­ing the first 18 months of operation.
  • Coor­di­nated invest­ment approval procedures.

There­fore, there is more to the island of Bar­ba­dos than sun, sand and sea. It is a great envi­ron­ment for those look­ing to expand their busi­ness beyond their shores and pro­vides numer­ous eco­nomic and human cap­i­tal ben­e­fits to investors and busi­ness operators.

© Photo taken from Pin​ter​est​.com
© Arti­cle of caribbe​an​dreams​magazine​.com

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