Formation of An Insurance Entity
After incorporation of the company you must submit the following to the FSC:
- A completed application form identifying the applicable class of licence required
- A detailed business plan which includes financial projections
- Three copies of the company’s draft articles of incorporation
- A list of directors including the full names, permanent address, country of birth, nationality, date of birth, business experience and other directorships.
- Character references of the shareholders, directors and officers
- Satisfy FSC’s fit and proper requirements
- A letter of acceptance of responsibility by the person resident in Barbados with which documents may be served
- The name and address of any actuary appointed by the company
- Name of an exempt management company, unless the captive insurance company will be self-managed
- An auditor’s certificate with respect to paid-up capital or contributed reserves
- A certified copy of the balance sheet.
If the company is earning 100% of income in foreign currency, submit an application for a FCP inclusive of a declaration by a director certifying that the entity will generate 100% of its income in foreign currency as applicable.
The application, including accompanying documents and fees (US$125) must be submitted to the Corporate Affairs and Intellectual Property Office. Simultaneously, submit the application for the FCP to the Director of International Business. On approval of the application, the FCP fee of US$500 must be submitted to the Ministry of International Business and Industry.
Estimated Cost to Establish and Operate a Class 1 Licensed Insurance Entity
The typical cost for setting up a Class 1 captive is approximately US$26,400. However, costs can vary depending on the type and complexity of the captive.
Set-up Costs
| US$ | ||
| Government | Fee on application for licence | 500 |
| Fees for company incorporation (approximate) | 400 | |
| Initial licence fee | 12,500 | |
| Professional fees | Incorporation and preparation of licence application | 10,000 |
| Audit certification of initial paid in capital | 3,000 | |
| Total | 26,400 |
Annual Operating Costs
| Typical Range | |||
|---|---|---|---|
| US$ | |||
| Government | Annual licence | 12,500 | |
| Other Costs | Typical Range (US$) | ||
| Professional | Corporate Secretarial | 2,500 | 5,000 |
| Audit | 7,500 | 40,000 | |
| Local director (per director) | 5,000 | 10,000 | |
| Management Company Fee | 15,000 | 50,000 | |
| Out-of-pocket | 500 | 2,500 | |
| Total | 43,000 | 120,000 | |
Licence fees for other classes of insurance are available at www.fsc.gov.bb.