International Business in Barbados

March 23 - I met with two business-oriented organizations to discuss the international investment climate in Barbados.


Janette Babb and Ezra Catwell represent Invest Barbados. Invest Barbados is a government body charged with attracting international investments into the country, particularly the “off-shore” – a term they avoid, preferring “international business company” – companies that are registered in Barbados . Companies registered in Barbados as Barbados corporations are able to avoid higher taxation in other (home) countries, especially the United States and Canada.

The organization is also involved in the registration of maritime vessels under the Barbados flag, again for tax avoidance purposes. The two officials pointed out that Barbados is a “low tax, not a no tax” country. The ship registration business is growing – Barbados maintains four offices around the world to facilitate the process.

Barbados is an attractive venue for banks, trusts and especially insurance companies. Most of the international insurance companies registered in Barbados are American, although there has been a slight decrease since a change in U.S. law that applies an excise tax on premiums paid to “foreign companies.”

When asked is American tax laws are beneficial to the Barbados economy, all I got was a smile.

I later met with Henderson Holmes, Executive Director of the Barbados International Business Association, sort of a chamber of commerce for the international companies that are registered on the island. This is a member-funded organization that works to ensure the Barbados government does not pass legislation that hurts the international business companies.

Henderson too allowed that stringent U.S. laws are the reason companies register as Barbados corporations – there are in excess of 3000 of them currently. He just wrote an article in the publication pictured above entitled, “President Obama’s New US Policies – A positive spin for Barbados.” (He’s not expecting an invitation to the White House….)

I appears that every time the United States passes higher corporate taxes or more restrictive regulations, more Barbados corporations are created. Perhaps some of out legislators should come here and research this. Wait, what am I suggesting, members of Congress traveling to resort destinations?

Rick Francona