A SRL can be formed either as an exempt society or a non-exempt
society. Exempt SRLs are used mainly for international transactions
and are prohibited from acquiring or holding land leased for
business purposes.
An SRL has the following characteristics:
- Limited liability
- A maximum of 50 years duration
- The rights, powers and privileges of an individual
- Stipulation that the transfer of quotas (as the membership
units are known) in a society will not confer on the transferee
the right to become a member or participate in the management
of the society without the consent of all the members in
writing
- The ability to seek, as an Exempt SRL, the benefit of
the special tax and other privileges outlined below
Benefits of this statute, in conjunction with other relevant
benefits are:
- Tax on income on a sliding scale, from a maximum of 2.5%
to a minimum of 1%
- Exemption from all withholding taxes
- No capital gains tax or estate duty
- Tax credit in respect of taxes paid outside of Barbados
is allowable but only insofar as it reduces tax payable
in Barbados to a minimum of 1%
- Complete freedom from exchange control
- Books of account may be kept outside Barbados
- No minimum capital or 'thin capitalisation' rules
- Bearer shares are permitted
- Inward and outward re-domiciliation provisions
- Tax Treaty network
- Convention expenses allowed by U.S. tax authorities
- Modern and flexible corporate law
- The sale of foreign real estate or investments, and the
transfer of equity in an SRL, are not subject to local transfer
taxes and stamp duty
- An SRL may import, free from all customs duties, machinery
or materials for use in its business
All of these benefits apply to an SRL which elects to be
treated as an exempt SRL; whereas several of the benefits
would not otherwise apply.
Contact a Barbados offshore management company:
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