24 February 2016

Barbados introduces ICC legislation

Barbados has passed legislation that enables the creation of incorporated cell companies (ICCs).

Intended to complement its segregated cell legislation, the introduction of incorporated cell companies provides investors with the ability to separate assets and liabilities within a number of financial service activities. The legislation is expected to come into effect before month end.

"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," said Donville Inniss, Barbados' Minister of Industry, International Business, Commerce and Small Business Development.

"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."

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."