RSS| Exempt Insurance Act |
The Exempt Insurance Act was introduced in 1983 to establish Barbados as a domicile for international insurance activities. The approach of the Act is both modern and flexible and it facilitates the licensing of exempt (captive) insurance companies and the registration of management companies and holding companies.
Presently, Barbados has developed into a viable alternative to Bermuda for the location of exempt insurance companies and generally for the conduct of international insurance Business.
| Requirements for exempt insurance business: |
· The company must be incorporated under the Companies Act as a company limited by shares or as a mutual insurance company;
· Its activities are the transaction of exempt insurance business;
· Its articles of incorporation are acceptable to the Minister;
· Must have at least one resident citizen as a director;
· It must have paid-up capital, or in the case of a mutual insurance company approved by the Supervisor, contributed reserves amounting to not less than US $125,000.00;
· Its articles of incorporation provide that upon liquidation of the company, monies payable to shareholders are payable to or for the benefit or persons resident outside the Caribbean community.
| Conditions of a license |
· In issuing a license, the Minister may specify the class of insurance to be carried on. It is a condition of a license that the licensee will not, without prior consent:
· Enter into a merger;
· Transfer its assets or liabilities except in the ordinary course of business;
· Change its name;
· Engage in business other than that specified in the license; and
· Alter its articles of incorporation.
A license issued remains valid until revoked and is subject to the payment of an annual fee. The fees payable are as follows:
On application US $ 250
Certificate on registration US $ 2,500
Annual fee US $ 2,500
| Incentives & Exemptions |
· Exempt insurance companies and management companies pay no income or capital gains tax on their profits or gains or on their transfers of securities to persons who are not residents of Barbados.
· Exempt from withholding tax and exchange control restrictions
· Expatriate staff, who may readily obtain work permits, can be exempted from income tax and exchange control on up to 35% of their remuneration.
source:www.bidc.com
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