Sole proprietorshipBarbados
What it takes to form, own and run a sole trader in Barbados, and how its profit is taxed. Each figure links to the page it was read from.
This company type
At a glance
Quote
You carry on a trade or business as a sole trader or an independent contractor.
Form it
Who registers it
- Registry
- Formed without visiting
- Yes
- Formed online
- Yes
What it takes to form
- A notary
- Not required
- A resident director
- Does not apply
- Paying up the capital
- Not in our records
Own it
Who may own and run it
- Directors
- Does not apply
- Shareholders
- Does not apply
- Members
- At least 1 · at most 1 · one person may form it alone
Quote
someone who owns an unincorporated business by themselves.
- A local company secretary
- Does not apply
- A local registered agent
- Not required
Quote
The following particulars are required: Name of the Business; General Nature of Business; Principal Place of Business; Full Name, Address, Nationality and Occupation of each individual;
Each year, at the registry
- Annual registry fee
- Free
Quote
There shall be payable to the Registrar in respect
- Accounts on the public record
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit for a small company
- Not stated
The registry’s and the law’s own pages do not mention it.
- Audit
- Not in our records
Important dates
When each obligation falls due, as the authority states it.
Not in our records No dates for the Sole proprietorship are in our records.
What is public
Not in our records What the register shows the public is not in our records for the Sole proprietorship.
Tax
Tax on profit
How this company type is taxed, which can differ from its place’s headline rate.
Through owners+1 regime
Not taxed as a company: each owner files an annual Personal Income Tax return on the profits of the trade or business (BRA self-employment page).
Quote
You carry on a trade or business as a sole trader or an independent contractor.
Special regimes that may apply
- Foreign currency permit free zone
A qualified person — a company, external company, firm, society or trustee of a registered trust — that earns 100 per cent of its annual income in foreign currency, and holds a permit granted by the Director of International Business Foreign Currency Permits Act, 2025-5, ss. 9 and 10
Whether a company qualifies depends on its activity and conditions set in each statute.
- CFC rules in Barbados
- Not in our records
Close it
Closing it
The other end, which most guides leave out.
Not in our records Route, Statutory fee: none of these is in our records for the Sole proprietorship.
Every business in Barbados
VAT
- Standard rate
- 17.5%
A 22% rate applies to telecommunications services and a 7.5% rate to accommodating direct tourism services.
Quote
The VAT Rates are as follows: 0% - Zero-rated items 7.5% - VAT on accommodating direct tourism services 17.5% - Rate for standard supplies 22% - VAT on telecommunications services
- Other rates
- 7.5% Accommodating direct tourism services
- 0% Zero-rated items
Quote
The VAT Rates are as follows: 0% - Zero-rated items 7.5% - VAT on accommodating direct tourism services 17.5% - Rate for standard supplies 22% - VAT on telecommunications services
- Registration threshold
- BBD 200,000
annual income or monthly revenue from taxable supplies; annual, or monthly revenue above 16,666.67
Quote
Persons who meet the following criteria must register for VAT: Persons whose annual income is $200,000 or more Persons whose monthly revenue is greater than $16,666.67
- A foreign company
- See the note
The Barbados Revenue Authority pages read set out who must register, the rates and the filing periods, but say nothing about non-resident suppliers.
- Returns filed
- Monthly
Quote
The VAT filing periods are shown in the below table: Reporting Period Period Period Number Category Dec 01 - Jan 31 1 202201
- Tax authority
- Registration page read 2026-10-22
Payment and banking services
None of the services whose lists we hold names Barbados. Each provider, and what a listing means.
Reference
Its name and code
- Kind
- Sole traderDerived our grouping, the same words in every country
- Name in law
- Sole proprietorship
- ISO 20275 code
- 5IL6Secondary GLEIF, Entity Legal Forms code list