Barbados has passed legislation that enables the creation of incorporated cell companies (ICCs).
The new legislation is expected to come into effect before the end of February.
The introduction of ICCs provides investors in Barbados with the ability to separate assets and liabilities within a number of financial service activities.
Donville Inniss, minister of industry, international business, commerce and small business development in Barbados, commented: “The government of Barbados understands the critical importance of its international business sector and the need to introduce new and relevant legislation to underpin its growth.”
“Incorporated cell legislation provides businesses with the ability to effectively structure specific operations by placing them within separate incorporated cells—legally separating the risks and assets of one operation from those of another incorporated cell.”
Under the new legislation, ICCs will be able to hold an unlimited number of incorporated companies, each of which is treated as a separate legal entity. Each cell will be considered a limited liability company with its own governance structure, board and officers.
This structure will also allow for each cell to separate its assets, liabilities, shareholder agreements and other legal obligations from other cells within the ICC. Although the cell is effectively its own legal entity, the cells will benefit from lower costs associated with the shared administration of the ICC as a whole.
Inniss added: “The ICC structure will be of particular interest to companies engaged in financial services activities such as insurance, banking and mutual funds.”
“Our clients have been asking us for this product and early interest suggests that the market will be very receptive to the new ICC legislation as a whole. We also anticipate that the introduction of this product will drive a significant and near term growth, particularly in Barbados’ international insurance sector.”
