BARBADOS FACT FILE

Barbados is an independent English-speaking Commonwealth country with a dynamic economy.   It has been an independent nation since November 30, 1966.  The most easterly of the Caribbean islands,  it is just over three (3) hours by plane from Miami, four and one-half (4 ½) hours from New York and eight (8) hours from London. Barbados is well known for its high level of political, economic, social stability and integrity of its Institutions. The country has a mature democracy with elections every five years

Area: 430km2
Capital: Bridgetown

Population: 275,000. The only major centre of population is the capital of Bridgetown.
Business language: English
Currency: Barbados Dollar (BDS$). BDS$2=US$1
Time zone: GMT -4
Business hours: Mon-Fri 8am to 5pm
Climate: Tropical.
Average temperatures of 22ºc and 28ºc.

As a former Colony of the United Kingdom Barbados' has inherited the English Common Law as the basis of its legal system, with amendments by statute to meet local requirements.   The judiciary is independent of the executive and legislative functions of government.  At present the Country's final Appellate Court is the Privy Council in the United Kingdom

Barbados with a well educated and skilled population of 275,000 has a well developed infrastructure and an excellent level of professional service.

Whilst the Common Law is the thread running through the backbone of a highly developed and skilled legal system, legislation has been enacted to buttress where necessary existing law. Thus in the early 1980's a new modern Corporate Law modeled on Canadian Corporate Law was enacted. It is under this Act that all Corporations, be they International Business Companies, Offshore Banks or Exempt Insurance Companies must first be enacted before being licensed under the specific legislation they seek to utilize.

Barbados has continually enacted and refined legislation that makes the country a highy respected domicile not only for insurance companies but for:

• International Business Companies
• International Banks
• International Societies with Restricted Liability
• International Trusts
• Mutual Funds

A new modern airport, daily flights from Canada, the United Kingdom, Europe and the United States and a developed telecommunications system, make doing business in Barbados a pleasure.

Sir L. E. Sandiford Conference Centre

QUICK FACTS ON THE ADVANTAGES OF  INTERNATIONAL INSURERS

IN BARBADOS

• An international insurer (Exempt Insurance company or Qualified Insurance company) may be licensed to write any type of general business (casualty, liability etc) and long term (life insurance etc).  The same company may underwrite both general and long term risks (no separate licence is required)

• An International Insurance Company can be licensed in Barbados under the Exempt Insurance Act, or alternatively registered under the Insurance Act which governs local insurance companies.  International companies who choose to register under the Insurance Act, are known as Qualifying Insurance Companies (QIC) and are subject to  local tax.  However, Barbados has a tax credit system and based on the level of premium originating outside of CARICOM, the QIC can reduce the tax payable on general insurance business to 2.8% of taxable income and on life insurance business to 0.35% of gross investment income.

• Exempt Insurance Companies are exempt from tax on income, all withholding taxes, corporate taxes on capital gains, and tax on the transfer of assets or securities.  The Exempt Company also benefits from personal tax concessions for specillay qualified employees.

• The international insurer may be owned by non affiliated parties (both individuals or legal entities such as corporations, partnerships, trusts or holding companies). In addition there is no prohibition against ownership by insurance or reinsurance companies.

• The minimum paid in capital for all types of international insurers is US$125,000, but additonal surplus may be required based on the amount and type of business written.  Capital can be cash or a valid and irrevocable letter of credit drawn on or confirmed by an approved bank