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When the Caribbean island of Barbados officially became a sovereign nation in 1966, it was well-prepared for new challenges. Continuing a local parliamentary tradition that was already 327 years old, the new nation became the third-oldest parliamentary democracy in the world, with an independent judiciary based on English Common Law. The new national government was determined to diversify the Barbados economy beyond its traditional agricultural base.
The island's 166 square miles of relatively flat and arable land had made it a major sugar producer for centuries after colonization by the British in 1627. A balmy tropical climate and uniquely abundant white coral sand beaches were additional natural assets that formed the basis for rapid development of a thriving tourist industry.
Additional diversification programs in other sectors have also been notably successful. As an earner of foreign exchange, agriculture in Barbados now ranks well behind tourism, financial services and manufactured goods. The island's population of some 260,000 now includes a well-developed community of professionals in all business-related disciplines.
A specific objective of the government's diversification program was "to foster and promote the development of offshore financial services". As a senior member of the Barbados financial community, Royal Bank of Canada has played an important role in the expansion of this sector over the past three decades. Established in 1911, Royal Bank of Canada has had a proud history in Barbados. The Royal Bank of Canada Global Private Banking office now occupies a stately coral stone headquarters building in Chelston Park, just outside the island's capital, Bridgetown.
Welcoming New Business
Barbados has become a preferred low-tax jurisdiction for international business companies (IBCs). Special legislation to accommodate these companies in Barbados was first enacted in 1965, and has been updated at intervals since then. The latest revision, which added significant benefits for IBCs, was made in 1991. Barbados has also concluded a network of tax treaties with the United States, Canada, the United Kingdom, Switzerland, Finland, Sweden and Norway.
Taxes in Barbados are very low; the maximum rate, which has limited application, is a mere 2.5 percent. There are no taxes on exported dividends, or on transfers of securities or other assets between IBCs. There are also no exchange controls, and no restrictions on foreign ownership of businesses.
Barbados has also enacted special legislation regarding foreign sales corporations, captive insurance companies, shipping companies, offshore banks, international trusts and limited liability companies. In all cases, bureaucratic requirements are kept to a minimum, with procedures designed to speed incorporation and simplify licensing and supervision.
A First-Rate Environment
The welcoming environment created in Barbados has attracted a thriving financial services community operating under efficient, competitive conditions.
Reflecting its particular attractiveness for IBCs, there are now more than 2,600 of these companies licensed in Barbados. They are well-supported by large professional communities with in-depth experience and expertise in law, accounting and financial management. Most of the world's major accounting firms have offices on the island to serve their international clientele. The Barbados business community operates with state-of-the-art telecommunications facilities, and the island is served by direct flights to Canada and United States, as well as to Britain and Continental Europe.
The Central Bank of Barbados monitors and regulates commercial banks and other financial institutions on the island. The pro-business policies maintained by the Central Bank facilitate the use of a wide variety of tax-efficient financial structures for both corporations and individuals. At the same time, stable, consistent regulation and supervision ensures the security and confidentiality of Barbados-based legal entities.
Royal Bank of Canada Global Private Banking's office is a prime source of advice and comprehensive services for international clients seeking the advantages of Barbados unique environment.
Private Client Services
All private client services are delivered through a Relationship Manager, who is responsible for ensuring that the mix of services is tailored specifically to the client's individual needs. Through this personal relationship, the client has access not only to all services in Barbados, but also to all other services available through other Royal Bank facilities around the world.
Regardless of the physical locations and legal domiciles of various assets and financial vehicles, the client receives a seamless package of services through a single office. As plans take shape and evolve, Royal Bank of Canada Global Private Banking provides specialized services as required in all relevant areas. The ultimate objective is to create and maintain financial plans and arrangements that deliver optimum results. Global Private Banking personnel work closely with both clients and their advisers to achieve this objective. Regular review meetings allow plans to be modified and adjusted whenever necessary to accommodate changes in both personal goals and economic conditions.
The scope of service available from or accessible through Royal Bank of Canada Global Private Banking's office in Barbados covers a broad spectrum, including:
Investment Management Services: From custody and execution of client directed portfolios to discretionary management services for individuals our investment services are tailored to meet client specific criteria.
Domestic and Internatinal Trusts: Placing ownership of assets in a trust in an offshore jurisdiction is often a key element in personal estate and tax planning.
Managed Companies: Accumulating assets in a company in an international jurisdiction can simplify financial management. International companies are often used in conjunction with trusts to provide secure continuity after death.
International Banking and Deposits: The full range of international banking in all major currencies can be accessed through the Barbados office. Deposits are also accepted on a variety of terms, at competitive interest rates.
Corporate and institutional Services
Royal Bank of Canada's Barbados office also provides a comprehensive range of services for corporate and institutional clients. In today's global economy, using appropriate offshore structures can be vital to achieving strategic goals for many types of enterprises.
The range of services accessible through Global Private Banking specialists to corporations and their advisors includes:
- Third-party funds administration,
- Trust company management,
- A fiduciary capacity for structured finance vehicles and securitizations,
- Escrow agent, and
- A full range of banking services for captive insurance managers.
For more details about these and other Royal Bank of Canada services, please refer to the accompanying brochure.
World - Class Standards
The approach taken to economic development in Barbados has been quality-oriented from the outset. The island's natural assets as a tourist destination, for example, have been greatly enhanced by the development of world-class hotels, resorts, restaurants and recreational facilities of many kinds. A similar approach has been taken to the development of the financial sector. A climate of prosperity for financial industries has been created while also maintaining the same world-class standards previously applied in the tourist sector.
As it approaches a century of service on the island, Royal Bank of Canada takes pride in the agreeable business climate it has helped to create in Barbados. Royal Bank's regional office for the Caribbean also makes its home in the warm and welcoming environment of this distinctive island. Royal Bank of Canada Global Private Banking along with their Royal Bank colleagues on the island look forward to introducing many more international clients to the special advantages of Barbados.
To learn more about what Royal Bank of Canada Global Private Banking's office in Barbados can do for you, please contact:
Royal Bank of Canada (Caribbean) Corporation
P. O. Box 986
2nd Floor, Building 2
Chelston Park
Collymore Rock, St. Michael
Barbados
Tel: (246) 429-4923
Fax: (246) 429-4948
E-mail: gpb.barbados@rbc.com
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