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We note that the determination of the tax residency of Barbados Companies is based on where the mind management and control or central mind and management of the Company exist. Therefore, it is recommended that mind management and control be carried out in Barbados.
To help establish this, it is normally recommended, inter alia, that the business and affairs be conducted from Barbados such that:
All meetings are held in Barbados.
Resident Barbados directors should sit on the Board of Directors (preferably in the majority) engaging in the management of the Company.
Business communications, essential functions, major decisions, etc. are sent through or taken in Barbados;
A physical office is situated in Barbados.
Tax authorities commonly consider the following factors with regard to what conduct is sufficient evidence that the central management and control of a company is in the country of incorporation and not onshore in the country where some principals may be living:
Where the actual activities of the company take place
Where meetings are convened and decisions for day-to-day operations are carried out
Where the directors are tax resident or located normally
Whether the local directors operate independently or at the request of a principal or other authorised person in another country
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