When you start your global expansion to Barbados, you have to establish a subsidiary in your country of choice or work with a global PEO. Subsidiaries can provide benefits for international companies, but the incorporation process can be challenging to handle on your own. With Globalization Partners, you can sidestep the difficulties and work through our established entity instead.
How to Set Up a Barbados Subsidiary
Before initiating the subsidiary setup process, you must prepare for the application. It’s best to develop your company’s structure, including creating your board of directors and finding a physical location for conducting business. You may purchase a building or create your own office space, but building your own property will require permits.
The subsidiary setup process involves applying through the appropriate government departments. While some countries require several department clearances, you only have to work with one office in Barbados to create your entity — the Corporate Affairs and Intellectual Property Office.
You need to submit at least two company names in order of preference to this office, and they will offer what’s available. You also have to include other information such as your official address, company details, and shareholders’ names and addresses. Once the Corporate Affairs and Intellectual Property Office confirms these items, your incorporation will be complete.
From there, you need to formally register your company based on the type of business you intend to run. Generally, the process involves:
- Paying any required capital.
- Submitting a declaration of compliance from a lawyer.
- Receiving a Certificate of Good Standing from the Corporate Affairs and Intellectual Property Office.
Barbados Subsidiary Laws
The subsidiary laws vary based on the type of company you register, but there are a few regulations consistent throughout types. You must have at least one director and set a maximum number of directors for your company. You also need to pay any investment capital requirements for your company type.
One of the most notable subsidiary laws is the need for articles of association. These documents describe how your company operates and include:
- The process for appointing directors.
- Daily proceedings.
- Financial organization and filing.
Benefits of Setting Up a Barbados Subsidiary
While the process can be extensive, your subsidiary does provide several advantages. You’ll have a separate entity from your parent company, which means the new entity will be responsible for its processes, allowing you to create an individual identity and culture in the area.
Your subsidiary will also have its own liability. If your entity encounters legal trouble, your parent company will not be responsible and vice versa. With separated liabilities, legal problems cause less financial damage to the overall company.
When you work with Globalization Partners, you get all the advantages of establishing a subsidiary without completing the lengthy process. We hire your employees through our subsidiary and handle all the employment processes. You offload all legal risk to us, so you can focus on building your company.
Other Important Considerations
Incorporating and registering a company requires two essential resources — time and money. In Barbados, the processing time may only be a week or two for official registration. However, the application process doesn’t include the time spent appointing directors, finding or building a property, and drafting your articles of association. Collectively, these steps may take months.
Applications also come with processing fees. In addition, the country requires a declaration of compliance from a lawyer, which means hiring a firm to read over your company’s documents.
As an international business owner, you’ll likely end up spending time and money on flights to and from the country. Setting up a subsidiary is a significant commitment that you must prepare for.
Let Globalization Partners Help With Your Expansion
Get started on your expansion today with help from Globalization Partners. Reach out to learn more about what we can do for you.