Business Policy Startup Non-Profit Companies in Barbados: Regulations You Need to Know By Jeremiah Dryden Posted on 2 weeks ago 3 min read 0 Share on Facebook Share on Twitter Share on Linkedin Barbados provides a clear framework for establishing and managing non-profit companies, ensuring transparency and accountability while accommodating their unique operational needs. Here’s a comprehensive guide to the key regulations governing non-profit organizations under the Companies Act and Companies Regulations. What is a Non-Profit Company? A non-profit company in Barbados operates without pecuniary gain to its members. Any profits or assets are directed towards advancing the organization’s purpose rather than distribution to members Companies Regulations, p. 15. Key Features of Non-Profit Companies No Share Capital: Unlike traditional companies, non-profits cannot issue shares or allocate capital to members. Restrictions on Profits: Profits must be reinvested to further the organization’s objectives, as specified in their Articles of Incorporation. Members’ Interests: Member interests are typically non-transferable and do not cease upon death, ensuring continuity Companies Regulations, p. 35. Steps to Incorporate a Non-Profit Company Articles of Incorporation: Must include: A statement that the company is non-profit. The restrictions on activities and how profits will be utilized Companies Regulations, p. 35. Use Form 2, the prescribed template for non-profits. Approval by the Minister: Non-profits require prior approval from the Minister before filing their Articles of Incorporation Companies Regulations, p. 35. Supporting Documents: Submit a Notice of Registered Office (Form 4) and a Notice of Directors (Form 9) alongside the Articles of Incorporation. Financial Reporting Requirements Although exempt from some corporate financial disclosure requirements, non-profits must: Submit Annual Financial Statements: These must show assets, liabilities, revenue, and expenditures. Statements must be approved by the board and signed by directors Companies Regulations, p. 15. Include Auditor Reports: Financial statements must be accompanied by an auditor’s report to ensure accuracy and compliance. Compliance Benefits Non-profits adhering to the regulations enjoy: Tax exemptions where applicable. Enhanced credibility with donors and stakeholders. Protection from penalties or revocation of legal status. Understanding these regulations is crucial for non-profits to maintain good standing and achieve their mission effectively.
