BarbadosUltimate Guide to Attaining Barbados Offshore Banking License

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Barbados is recognized as an ideal location for international banking activity for a variety of reasons. For many years, multinational banking and financial institutions have been lured to Barbados because of its significant tax benefits, specific exemptions, guarantees on future taxation, high-quality professional services, and reputation as a renowned offshore banking center.

Barbados offers world-class offshore banking services. Barbados ranks first among eligible organizations and qualified international banks looking for a stable, safe, and well-regulated jurisdiction to locate their offshore services. Barbados, one of the most successful countries in the Western hemisphere, has a strong democratic government, great health services, and a workforce that is English-speaking, educated, and skilled. The country has a low crime rate and an advanced technology infrastructure. Moreover, Barbados shares the same time zone as Eastern Canada and the United States for six months of the year and with a one-hour difference for the remainder of the year. Investors seeking contemporary, convenient, and accessible international communications facilities may find island-wide telecommunications services appealing making the banking sector even more alluring for investment.

In this article, Tetra Consultants will not only provide a beginner’s guide on how to obtain a Barbados offshore banking license but also explain the key advantages of opting for Barbados as the proposed jurisdiction for banking companies so that you may better understand this business phenomenon and make a more informed decision about whether you should obtain a Barbados offshore banking license as well. 

This article is divided into two main segments. Firstly, we will explain what are the major advantages of cryptocurrency companies motivating many to start such companies in Estonia. Secondly, we will go over the eligibility criteria and steps to starting such a company and most importantly, obtaining a Barbados offshore banking license.

 

Why Barbados for obtaining Barbados offshore banking license?

The financial system is widely established in the literature as playing a critical role in the development process. As a result, governments must have robust and effective regulatory systems in place to safeguard investors and maintain the orderly operation of financial institutions and markets, as well as maintain financial system credibility and stability. 

The institutional framework of Barbados’ financial regulation has recently received considerable attention; especially, whether the present institutional structures for regulation result in comprehensive and effective regulation of the financial sector. The overall economy serves the following advantage when starting an offshore bank:

    • Politically stable economy 
    • Strong legislation and regulatory provisions
    • Low corporate tax rates ranging from 1% to 5.5% (depending on the profit)
    • No withholding tax or capital gains
    • Exemption from exchange control restriction
    • Unlike most Caribbean tax havens, Barbados does have double taxation treaties with a number of other countries, including Canada and the U.S.

 

What are the eligibility criteria for obtaining a Barbados offshore banking license?

To establish an offshore bank in Barbados, interested parties must:

  • Be incorporated under the Companies Act.
  • Restrict banking activities to offshore banking from within the country.
  • Ensure that at least 1 director is a Barbadian resident.
  • Ensure minimum capital requirements of US $5,000,000 cash (non-residents) or US $125,000 (residents).

Steps to obtain a Barbados offshore banking license 

Step 1: Filing for tentative application 

  • The process to start an offshore banking business in Barbados begins with the filing of a tentative application by foreign entities and owners to the Barbados Ministry of Finance. The application demonstrates the intention of starting an offshore bank on the island by the entities and on the basis of which the ministry gives the initial approval or indicates the subsequent success of the full license application. 
  • Tetra Consultants’ team of licensing experts has years of experience liaising with regulatory bodies for filing license applications for initial approval. Our team will consolidate the documents and information required under the license application with respect to the identification of owners, shareholders, and the corporate entity (if already incorporated) itself. 

Step 2: Incorporation of Barbadian entity

  • Before Tetra Consultants can register company in Barbados, we will assist you by providing a local registered office address and a local company secretary who would act as a liaison between you and the governmental authorities for filing of documents.
  • Based on the documents provided, Tetra Consultants will draft and notarize the Memorandum and Articles of Association, business plan, and other incorporation documents.
  • After preparing the required documents, Tetra Consultants will register your Barbados company through the Corporate Affairs and Intellectual Property Office.

Step 3: Corporate bank account opening 

  • You can leverage our vast banking network to assist you with the corporate bank account opening process. Our team has established partnerships with multiple reputable International and local banks in Barbados. Some of the Barbados banks we have worked with include RBC Royal Bank, First Citizens Bank, and Republic Bank. We will present your business to each relationship manager and compliance team.
  • Usually this process takes around 4 weeks to complete. 

Step 4: Meeting the eligibility criteria for the license application 

  • In order to proceed with the license application you need to ensure that you fulfill the minimum capital requirement. 
  • Tetra Consultants team will guide you on the deposition of capital into the corporate bank account opened for the entity. 
  • Tetra Consultants’ legal team will prepare the required documents for the license application. These documents will include the business plan, AML/CFT policy, and insurance policy depending on the local requirements. Once the documents are prepared, Tetra Consultants will send over the drafts for your review. Thereafter upon confirmation, we will send them to you for e-signature and prepare for license application. 

Step 5: Submission of license application 

  • Once the above is completed, Tetra Consultants will submit the application to the Central Bank of Barbados. Depending on the jurisdiction, you may be required to attend an interview with the regulator prior to license approval. In this case, Tetra Consultants will prepare you for the interview and assist with the follow-up actions required by regulatory authorities. 
  • If all goes well, your firm will receive the offshore banking license and will be required to start business operations within the stipulated time frame in order to maintain the license.

Conclusion 

Navigating the country of Barbados’s complex business climate and legal environment as an entrepreneur looking to set up an offshore banking company might be a challenging process – a hassle to say the least. However, with the benefits of heightened privacy safeguards and more securitized processes, alongside various tax and accounting benefits, it is no surprise that many businesses and international actors continue seeking to apply for Barbados offshore banking license. 

As such, Tetra Consultants hopes that this article has provided you with a much better understanding of the benefits of engaging in the offshore banking business, and how you can acquire Barbados offshore banking license as well so that you can truly decide on whether you should do so yourself. 

So, what are you waiting for? Contact us to learn more about how to attain Barbados offshore banking license, and our dedicated and experienced team will respond within the next 24 hours. Tetra Consultants will not only empower you by helping to navigate the different regulations of Barbados but also aid in facilitating the registration of your company there while providing invaluable, nuanced insights into any potential challenges. 

Tetra Consultants

Tetra Consultants is the consulting firm that works as your advisor and trusted partner in your business expansion. We tell our clients what they need to know, instead of what they want to hear. Most importantly, we are known for being a one-stop solution for our valued clients. Contact us now at enquiry@tetraconsultants.com for a non-obligatory free consultation. Our team of experts will be in touch with you within the next 24 hours.

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