Barbados is not just an idyllic island straddling the Atlantic Ocean and Caribbean Sea. Its small size belies its status as a global partner for international business. Despite being buffeted by the headwinds of global recession, Barbados has remained a stable and resilient jurisdiction, attracting close to 400 new international business entities to its shores […]
By Ryle Weekes
March 22, 2014
Barbados is not just an idyllic island straddling the Atlantic Ocean and Caribbean Sea. Its small size belies its status as a global partner for international business. Despite being buffeted by the headwinds of global recession, Barbados has remained a stable and resilient jurisdiction, attracting close to 400 new international business entities to its shores each year.
The island’s charm as a choice location for global businesses including some headquarters, lies in its strong network of double tax and bilateral investment treaties, its highly skilled workforce, and exceptional quality of life.
This International Business Company (IBC) sources precious metals from South East Asia and makes sales into jurisdictions worldwide.
Tim, the company’s Business Manager is a highly skilled local resident with a number of years of experience dealing in precious metals and is also a qualified accountant. Due to his expertise the company is now looking at expanding the business operations in Barbados. Tim’s ability to exercise independent judgment is crucial to ensuring that the structure is centrally managed and controlled in Barbados.
As the parent company is based in Canada, this structure is tax efficient and maintenance of the IBC is easy and low-cost. The parent company is able to focus on sales in Canada and the repatriation of profit from Barbados enables the parent company to further expand its Canadian operations and enable it to compete globally more effectively.
The principal of the parent company, Robert, is currently contemplating purchasing property in Barbados, and will apply for the Barbados special entry permit which would grant him and his family the ability to live in Barbados during Calgary’s harsh winter months.
Juan enjoys travelling to Barbados from Mexico each year as he attends board meetings of his Exempt Insurance Segregated Cell Company (SCC) and his family enjoy frolicking in the Caribbean Sea at the edge of their West Coast hotel. Juan is one of several Mexican owners of the SCC and he and his fellow owners make regular visits to Barbados for meetings and to vacation with their families. They utilize at least 30 high-end hotel rooms per annum, enjoy Barbados’ various restaurants and golf courses, and generally benefit from our varied tourism amenities.
The SCC owners are wealthy entrepreneurs with a good track record and are able to market the SCC effectively to other wealthy Latin Americans. While the owners have specific interest and expertise in the insurance industry, they are also familiar with other international products Barbados has to offer, and have encouraged their clients to set up IBCs and banks here.
Barbados is benefiting from the annual spend of these busy Mexican business travellers and their families thanks to the Mexico-Barbados Double Taxation Treaty. The SCC is managed in Barbados by a local management company licensed specifically to manage insurance companies. The manager, Joe, is a Barbadian who has a mid- sized company employing 15 other skilled local professionals.
Dave has been in charge of a Society with Restricted Liability (SRL) in Barbados for the past three years. The company, whose ultimate parent is a US-incorporated Fortune 500 company, provides global financing to affiliated companies and acts as a holding company for group investments. Dave was recruited by the company straight from the University of the West Indies (Barbados, Cave Hill Campus) 13 years ago. He steadily worked his way up through various departments until his appointment as President following a one-year stint at the company’s head office in Boston. He is one of two Barbadian managers of the company and one of five non-US/non-Canadian managers appointed to serve on the company’s Board.
While Dave could have stayed in Boston, he opted to return to Barbados to be close to his family. Consequently, Dave is able to benefit from the joys of island living whilst operating a fast-paced international business conducting same-day cross –border financing transactions worth millions, sometimes billions of dollars. These transactions involve six countries in various time zones: Nigeria, Philippines, Bermuda, Barbados, USA and Canada. Dave is part of a global team of 30 employees in five corporate functions and although operating out of different time zones, Barbados’s robust telecommunications network has allowed seamless integration between the Barbados office and the global team.
Dave’s long service with the company means he has developed a good relationship with the overseas managers who come annually to Barbados to attend meetings. He joins them golfing and introduced them to a number of his Barbadian friends, who have also maintained longstanding friendships with the well-travelled managers. One of the overseas managers also purchased a condominium on the West Coast where Dave lives and when he visits they go out in large groups to high-end restaurants, providing these establishments with good business even outside of the tourism high season.
The owners of the company chose Barbados because Dave and other local staff members provide a skilled workforce that they can count on to grow their business. This, along with the ease of travelling to and from Barbados, the high quality of local service providers, tax advisers and lawyers has made Barbados a firm favourite for the owners.