Barbados company structures: at a glance

Hawksford

Last updated: 17 September 2026 |

Americas | Barbados

Options for registering companies in Barbados

Barbados is an island republic in the Caribbean and a member of CARICOM. Its corporate framework includes locally organised societies with restricted liability and external companies formed under foreign law and registered in Barbados.

Corporate registrations are administered by the Corporate Affairs and Intellectual Property Office (CAIPO) through the Business Barbados digital registry. The Companies Act, Cap. 308 and the Societies With Restricted Liability Act, Cap. 318B provide the main statutory framework for these structures.

The entity options differ across legal separation, taxation, capital requirements and control frameworks, affecting how foreign investors structure and operate their presence.

Barbados offers international investors the following legal structures for establishing a local presence:

Society with restricted liability

A society with restricted liability is a Barbados corporate body with full corporate personality and ownership interests held through quotas.

A society with restricted liability has full corporate personality under Cap. 318B and restricted member liability. Unlike an external company, it is organised under Barbados law.
An SRL may be used for Barbados business operations where ownership is structured through quotas rather than shares. It has the capacity and powers of an individual, subject to its articles and applicable law.
The SRL Act does not prescribe a minimum share capital requirement. Ownership interests are represented by quotas, which correspond to contributions to the capital of the society.
One or more persons may organise an SRL, and its by-laws may provide for one or more managers. Corporate records must be maintained at the society's registered office in Barbados.
SRLs are subject to Barbados corporation tax under the applicable statutory regime. The tax treatment and applicable rates depend on the nature and status of the society and the relevant tax rules.
An SRL must maintain the required corporate and beneficial ownership records at its registered office in Barbados. An annual audit is required where gross revenue or assets exceed BBD 1 million under Cap. 318B.
In contrast to an external company, an SRL is not a foreign body registered to operate locally. Regulated banking, insurance and securities activities require separate statutory approval.

External company

An external company is a body formed under foreign law and registered in Barbados to carry on business locally without becoming a Barbados-incorporated entity.

An external company is a body formed outside Barbados and registered locally under the Companies Act. Compared to an SRL, it is not incorporated as a Barbados society or local body.
This structure allows a foreign company to carry on an undertaking in Barbados through its registered external-company presence. CAIPO requires registration before carrying on business locally under Cap. 308.
The Companies Act does not prescribe a minimum share capital requirement for registration of an external company. Registration instead requires the prescribed corporate documents and information.
Registration is made using Form 28 (Application for Registration of an External Company), together with a power of attorney in Form 30 and the other documents prescribed by the Companies Act. The appointed attorney must be resident in Barbados to receive service of process and lawful notices.
A non-resident external company is taxed in Barbados on income derived in Barbados. Branch profits remitted to non-residents are generally subject to 10% withholding tax, subject to applicable rules and treaty provisions.
External companies must file an annual return using Form 31 and maintain the prescribed corporate and beneficial ownership information at their registered office in Barbados.
In contrast to an SRL, an external company does not create a separate Barbados-incorporated body. An external company that is not registered under the Companies Act cannot maintain an action, suit or other proceeding in a Barbados court in respect of certain contracts connected with its undertaking in Barbados.

Comparison of the common types of companies in Barbados

Key information	LLC (Society with a Restricted Liability)	Branch (External Company)
Commonly used for	All purposes	Specific projects
Minimum capitalisation	US$1	US$1
Limited liability	Yes	No
Time to incorporate	4 weeks	4 weeks
Tax rate (CIT)	9%	9%
Resident management	No	No
Cost indication Includes Hawksford’s Fee	US$9,355	US$9,355

Any estimates published on Hawksford’s website set out indicative fees for entity formation, tax/VAT registration, a registered office address and estimated government filing fees. They do not include fees for additional services that may be required such as resident directors, licences for regulated activities, bank account setup, initial capital or other third-party charges. Actual setup costs can vary widely depending on the entity type, business activities, and structure. Terms and conditions apply. For a detailed, tailored quote, please contact us.

Updated on 17 September 2026

Information verified against Corporate Affairs and Intellectual Property Office, Barbados Revenue Authority, Invest Barbados and the Barbados Judicial System consolidated legislation database.