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Integrity and ProfessionalismFor the past 30 years, successive governments in Barbados havediligently constructed a framework of legislation designed toencourage foreign investment and establish the island as a leadinginternational business centre in the Caribbean.Today, Barbados is a highly respecteddomicile for such entities asInternational Insurance Companies,International Business Companies,International Banks, Societies WithRestricted Liability, InternationalTrusts, and Mutual Funds.Throughout the process of enactingand refining the laws governinginternational business, the countryhas rigorously safeguarded itsreputation for integrity, respondingquickly to such international concernsas money laundering and lack oftransparency.Indeed, while offering a low-taxenvironment to internationalbusinesses, Barbados has, from thevery beginning, chosen to establish ahigh level of transparency and acooperative approach to sharinginformation sharing with taxauthorities in other countries.Professional ServicesThe island provides an excellent rangeof professional services – and highlyskilled professionals – to meet the needsof the international business sector.The legal profession is well establishedin Barbados, with many law firms thatspecialise in corporate and internationalbusiness law.All of the major international accountingfirms are represented through localpartnerships, offering assurance, tax,advisory and corporate services. Thereare several independent managementcompanies on the island that alreadyhandle the business of scores ofInternational Insurance Companies.BARBADOS INTERNATIONAL BUSINESS COMPANIESBarbados has tax treaties with the following countries:nnnnnnnThe United StatesCanadaThe United VenezuelaThe territories thatcomprise the CARICOMSingle Market andEconomyNOTE: To review the entire International Business Companies Act andother laws pertaining to international business, please visit the website ofthe Ministry of Industry and International Business at:www.barbadosbusiness.gov.bbpwc9

Geography, Climate and PopulationGeographyBarbados is the most easterly ofthe Caribbean Islands. Essentiallya “coral” island, with an areaof 166 square miles, it is situatedapproximately 1600 milessoutheast of Miami, Florida.The island is easily accessible byfrequent scheduled flights fromMiami (3.5 hours), New York City(4.5 hours), Toronto (5.5 hours),and London or Brussels (8 hours).ClimateBarbados has a tropical climateand relatively high averagetemperatures and humidity.However, these conditions aremoderated by the cooling effectof strong North East trade windsthat blow over the island.Temperatures during the dayrarely exceed 30C (86F).During November though March,conditions tend to be a fewdegrees cooler, while the monthsof July through October aregenerally more humid and wet.PopulationThe resident population of theisland is approximately 270,000.Approximately 94% of Barbadiansare of African descent, with theremainder being of Europeandescent and other nationalities.When segmented by age, 24%of the population is under 15,with 64% between the ages of 15and 64. The remaining 12% areover 65.10pwcTop: the island’s East Coast is noted for its rugged beauty and Atlantic swells.Bottom: The West Coast is famous for its crystal-clear waters, fine sandbeaches and luxury accommodation.BARBADOS INTERNATIONAL BUSINESS COMPANIES

Barbados is the most easterly of the Caribbean islands, situated about 1600 miles southeast of Miami, Florida.BARBADOS INTERNATIONAL BUSINESS COMPANIESpwc11

HistoryArchaeological evidence shows that the Arawaks, apeople indigenous to the Orinoco River area of Venezuela,inhabited Barbados from around 600BC. They were laterdriven out by the Caribs, who also migrated north from thesame area but who did not settle on the island.The Europeans knew about theexistence of Barbados since the16th century. However, the islandwas not settled until 1627 when agroup of Englishmen established aformal colony and planted tobaccoand cotton for export to England.After 1645, these crops werereplaced by sugar cane, whichfostered the development of theplantation system.From early on, Barbados enjoyedtrading relationships and otherties with the United States andlater Canada. In 1670, Barbadianimmigrants helped to found theState of South Carolina and itscapital city of Charleston.What is more, Barbados bears thedistinction of being the only countryoutside of the United States evervisited by George Washington whocame to the island in 1752.Since the abolition of slavery in1834, the descendants of Africanslaves who were brought toBarbados to underpin theplantation system have developedinto a thriving and industriouspopulation.Carved by aBritish armyofficer stationedon the island, thisstone lion is areminder ofBarbados’colonial past.The Corp ofDrums of theBarbadosDefence Forcewear uniformsthat date backto Victorian times.In 1966, after almost 350 years ofunbroken British colonial status,Barbados became a fullyindependent sovereign nation.The island is English-speaking andhas remained a member of theBritish Commonwealth.12pwcBARBADOS INTERNATIONAL BUSINESS COMPANIES

Politics, Government and JudiciaryPoliticsAn independent country sinceNovember 30, 1966, Barbados isnoted for its high level of political,economic and social stability, aswell as for the integrity of itsinstitutions. The country operatesas a well developed democracywith open elections held every fiveyears. There are two main politicalparties, the Barbados Labour Partyand the Democratic Labour Party.Elections are hotly contested, butare notably free of violence andcorruption.GovernmentBarbados enjoys a parliamentarystyle government, with a House ofRepresentatives and a Senate.The island’s first Parliament wasestablished in 1639, making it thesecond oldest in the WesternHemisphere.The function and powers of theGovernment are vested in Cabinet,presided over by the PrimeMinister. Senators are appointed:12 by the Government, two by theofficial Opposition, and seven“independents” on therecommendation of the GovernorGeneral who is the Queen’srepresentative and Head of State.JudiciaryThe legal system of Barbados isbased on English Common Law asmodified by Statute to meet localrequirements. The members of thejudiciary, in performing their judicialacts, are completely independentof the executive and legislativefunctions of Government.Top: The Parliament Buildings in Bridgetown – home to the second oldestparliament in the Western Hemisphere.Bottom: Mounted police in full ceremonial uniform.BARBADOS INTERNATIONAL BUSINESS COMPANIESpwc13

Economy, Trade and IndustriesBarbados embodies an open, small, free enterpriseeconomy. A Value Added Tax on consumption,implemented in 1997, has enabled the country to reduceits dependence on import tariffs and duties as a source ofrevenue, and also to improve compliance with WTO rules.In 2003, the country’s GrossDomestic Product (excluding netindirect taxes) was approximatelyBDS 4.4 billion. That same year,exports amounted to BDS 500million, while imports totalledBDS 2.39 billion. Domestic exportsconsist mainly of sugar and its byproducts rum and molasses,chemicals, clothing, furniture,electrical components and cement.Consumer goods, mostly food andbeverages, account for the majorityof the island’s imports – BDS 915million in 2003. That same year,intermediate goods and capitalgoods such as machinery for usein agriculture and manufacturing,accounted for BDS 2.26 billion ofthe island’s import bill.Based primarily on sugar until the1970s, the island’s economy nowhas four key productive industries:tourism, agriculture, manufacturingand international business.TourismTourism continues to play a key rolein the economy and has a positive“spin-off” impact on virtually all otherbusiness sectors. Currently, thisindustry accounts for about 11% ofthe employed labour force and is thecountry’s principal foreign exchangeearner. For example, in 2003, thegross annual earnings from tourismwere approximately BDS 1.46billion. The island attractsapproximately one million visitorseach year, with an almost equal splitbetween long stay visitors and cruiseship passengers.14pwcTop: St. Lawrence Gap, on the vibrant South Coast – heart of the island’snightlife.Bottom: This modern distillery produces fine rums for which Barbados isfamous.BARBADOS INTERNATIONAL BUSINESS COMPANIES

on this commodity and toencourage diversification, especiallyin vegetables, poultry, livestockand fishing. The island is virtuallyself-sufficient in pork, poultry, freshmilk and vegetables.International BusinessThis sector, which has steadilydeveloped since 1977, nowcontributes significantly to theisland’s foreign exchange earningsand provides employment forapproximately 3,000 Barbadians.Some unofficial estimates put thesector’s contribution to thecountry’s GDP at about 7.5%.Local crude oil production meets about half the islands domestic requirements.ManufacturingThe manufacturing sector inBarbados accounts forapproximately 7% of the island’semployed labour force and includesfood and beverages (especiallysugar and rum), electronics,hardwood furniture, garments andchemicals.The country continues to welcomeinvestment in the manufacturingsector, especially for the productionof higher value-added, skills-intensive products that use moderntechnology. Electronics, medicalequipment and informationprocessing are areas of particularinterest. In recent years, the islandhas been attracting a growingnumber of call centres.AgricultureWhile the production of sugar is stillimportant to the island’s ability toearn foreign exchange, theGovernment’s policy in agriculturehas been to reduce dependencePrimary ResourcesOther than substantial limestonedeposits that are mined and usedto produce cement and other limebased products, Barbados doesnot have an abundance of naturalresources. However, the countrydoes have some oil and natural gasdeposits that have been accessedto reduce dependence on outsidesources. In 2003, approximately22.4 million cubic metres of naturalgas were sold, and 371,000 barrelsof crude oil produced. Local crudeoil production meets about half thedomestic requirements.Barbados Gross Domestic Product (2003)BARBADOS INTERNATIONAL BUSINESS COMPANIESpwc15

Money, Banking and FinanceBarbados has been a member of the InternationalMonetary Fund since 1973. The Barbados dollaris backed by gold and foreign assets, which havepromoted stability and confidence in the currency.Since 1975 the country’s dollar has been fixed atBDS 2.00 to US 1.00.Exchange controlBarbados has exchange controlregulations, although these are beingloosened over time. However,international businesses, includingExempt Insurance and QualifyingInsurance Companies, are exemptfrom these exchange regulations.There are also several financecompanies operating in Barbados.Apart from collecting deposits,these companies complementthe commercial banks in financingthe purchase of constructionequipment, motor vehicles andother consumer durable goods.Domestic InsuranceThe Central Bank ofBarbadosBarbados has had a Central Banksince 1973. The main role of theCentral Bank is to act as banker,fiscal agent and financial advisorto the Government, and to monitorand regulate the activities ofcommercial banks and otherfinancial institutions. It also has aduty to promote monetary policiesand exchange policies thatencourage economic growth.Barbados has a highly developeddomestic insurance industry.Placement of insurance throughbrokers is commonplace.Commercial Banks andFinance CompaniesThe banking system in Barbados iswell established, and the island hasa competitive commercial bankingsector. The commercial bankscurrently operating here include:First Caribbean International Bank(a regional combination of BarclaysBank and CIBC Caribbean), RoyalBank of Canada, Bank of NovaScotia, Barbados National Bank(majority owned by Republic Bankof Trinidad), Bank of Butterfield &Sons, and Caribbean CommercialBank (wholly owned by Royal Bankof Trinidad & Tobago).Top: The Tom Adams Financial Centre, named after the island’s second primeminister, is home to the Central Bank of Barbados.Bottom: This elegant building is the head office of FirstCaribbean InternationalBank.16pwcBARBADOS INTERNATIONAL BUSINESS COMPANIES

Transport and CommunicationAirportVoted the “Best Caribbean Airport”at the World Travel Awards for 2003,the Grantley Adams InternationalAirport is located in the south of theisland, about 30 minutes from thecapital of Bridgetown. The airport isserviced by major internationalairlines, including American Airlines,American Eagle, Continental, USAirways, Air Canada, Air Jamaica,British Airways, BWIA and VirginAtlantic. These airlines providedirect links to major cities such asMiami, New York, Newark,Philadelphia, San Juan, Washington,Toronto and London. The GAIA is amajor “hub” for several regionalairlines that connect the EasternCaribbean with frequent flights daily.Barbados has excellenttelecommunications links, withdirect-dial available to all worlddestinations. Businesses areoffered the latest in communicationstechnology, and many use theInternet to provide information ontheir products and services.Currently, there are threetelecommunications companies onthe island providing cellular phonesservices: including Cable & Wireless,Digicel, and AT&T Wireless.News MediaThere are two English languagenewspapers, a television stationand several radio stations thatprovide local, regional andinternational news. Internationaleditions of major foreignnewspapers (from North Americaand the UK) are also available on adaily basis. Also, two satellite linkedcable television services providesubscribers with access to a widerange of international programming.Port facilitiesLocated on the edge of the City, theBridgetown Port is one of the mostmodern in the Caribbean. The portprovides container handling andberthing facilities for ocean-goingfreighters and passenger shipsincluding the world’s major luxuryliners, several of which now use theBridgetown Port as their “homeport”for Caribbean cruising in the SouthCaribbean.Postal, Courier andTelecommunicationServicesThe Post Office Department providesspeedy and reliable domestic andinternational mail services on a dailybasis to all parts of the island. Thereare 17 post offices that are openfrom 8:00 a.m. until 3:00 p.m.,Monday through Friday. Expresspost is available to certain countriesthrough the Post Office Department,and there are a number of privatecouriers including Federal Express,DHL and UPS.Top: Barbados enjoys excellent telecommunications links with the rest of theworld.Bottom: The island is also served by a modern deep water port.BARBADOS INTERNATIONAL BUSINESS COMPANIESpwc17

Infrastructure and Social EnvironmentBarbados is one of the most highly developed small countries in the world.The United Nations Development Programme (UNDP) has ranked Barbadosas No.1 on its Human Development Index in the Caribbean and LatinAmerica. In its development, Barbados is also outperforming all of Africa,and all of Asia with the exception of Hong Kong, Singapore, Japan andSouth Korea.The country’s high level ofdevelopment is reflected in itsinfrastructure and socialenvironment.Health ServicesThe Queen Elizabeth Hospital,situated on the outskirts ofBridgetown, accommodates 600patients in private and generalwards. There is also the BayviewHospital, which is privately ownedand accommodates 24 patients.There are also several wellequipped private clinics, healthcentres and nursing homes.The psychiatric hospital enjoys agood reputation.Barbados enjoys a high standard ofmedicine and health services overall.Dental and optical services are readilyavailable, and the Medical Registerlists specialists trained in the UnitedKingdom, Canada and the UnitedStates.EducationBarbados has an exceptionallygood educational system thatcomprises free primary, secondaryand tertiary levels of education.The literacy rate on the island isapproximately 97%.One of the campuses of theUniversity of the West Indies issituated in Barbados. Theuniversity’s Department ofManagement Studies together--with the affiliated Centre for18pwcTop: The Sherbourne Conference Centre – one of the most modern facilitiesof its kind in the Eastern Caribbean.Bottom: Student residences on the Cave Hill campus of the University of theWest Indies.BARBADOS INTERNATIONAL BUSINESS COMPANIES

Management Development providemany of the graduates for thecountry’s domestic corporatesector, professional services firms,and international business sector.Barbados also has a communitycollege, a teachers’ training college,a theological college, a hospitalityinstitute and a polytechnic.HousingBarbados has well developedresidential areas, and high qualityhousing for executives is availablefor sale or rent in many locationsacross the island.WaterBarbados enjoys crystal cleardrinking water throughout theisland. Its primary source isunderground springs, filteredthrough coral, and these aresupplemented by the output froma newly completed desalinationplant.ElectricityThe Barbados Light & PowerCompany provided a highly reliableelectricity service throughout theisland. Domestic current willoperate appliances designed for110 volts AC, 50-cycle supply.A 220-volt supply is also availableto industrial and domestic users.RoadsBarbados is criss-crossed by anextensive network of pavedroads, including a trans-islandhighway that links all of the maintransportation arteries. Driving ison the left-hand side of the road.Top: High quality executive housing is available for sale or rent in many partsof the island.Bottom: Good quality, modern office space is available in several purposebuilt complexes on the outskirts of the city.Office SpaceGood quality, air-conditioned officespace is available in Bridgetown orin several purpose-built officecomplexes on the outskirts of thecity. Lease arrangements can benegotiated at reasonable rates.BARBADOS INTERNATIONAL BUSINESS COMPANIESpwc19

Hotel AccommodationIn keeping with its reputation as ahigh-end tourism destination,Barbados has well-run hotels ofinternational standards. Theseinclude a newly reconstructedHilton, The Fairmont Hotels’ RoyalPavilion, and Sandy Lane Resort,recognized as one of the finestfacilities of its kind in the world.Other smaller but excellent qualityhotels include Coral Reef, ColonyClub, Glitter Bay Resort, CobblersCove and The Crane PrivateResidence Resort. In all,accommodation in Barbados,including luxury hotels, villas,guesthouses, and rental apartments,totals just over 8,000 rooms.Many of the larger hotels offerconference facilities, as does theSherbourne Conference Centre, apurpose-built facility on the outskirtsof Bridgetown.Restaurants and NightclubsBarbados has dozens ofrestaurants, many of which areworld-class in standard. In additionto these restaurants, there areseveral excellent private firms thatcater for receptions. The island hasan active nightlife, particularly onweekends, and there severalnightclubs offering live bands as wellthe latest in international

environment to international businesses, Barbados has, from the very beginning, chosen to establish a high level of transparency and a . business law. All of the major international accounting firms are represented through local partnerships, offering assur