“What is that?” is the first response offered by most Barbadian small business owners.
This article will outline that, as well as “How does one qualify for the Small Business Approved Status?” and “What are the benefits?”
In a nutshell, businesses that have Small Business Status are entitled to a set of incentives offered by the Government of Barbados.
So, “How does one qualify for the Small Business Approved Status?”
In order to qualify, the company must satisfy the definition of a small business as outlined by the Small Business Development Act and it must provide socio-economic benefits. To find out what is the definition of small business is and what socio-economic means click here.
“What are the benefits?” The benefits are:
Reduction in corporation tax. Currently a company would pay 25% of their profits in corporation tax. With this stamp of approval, your company would pay 15%.
Exemption from import duties on plant, equipment and raw materials. It should be noted that depending on what you are importing and its intended use, your business may already be able to qualify for exemption duties (i.e. without seeking small business approved status). The Comptroller of Customs can further advise on this issue.
Exemptions from withholding tax on dividends and interest. The dividends or interest must be earned on any investment in an approved small business or in any fund approved for investment in small businesses.
Exemption from stamp duty.
Access to Technical Assistance up to $50, 000 BDS.
Access to a loan guarantee.
For more information contact the Ministry of Trade, Industry and Commerce. It costs nothing to find out if this approval can help your business.
And as part of the process, your business must become incorporated. This process is not free. However the government has set up a system whereby you can be refunded the cost of incorporation.
To read the entire Small Business Development Act click here.
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