Company Registration in the Bahamas

Company Registration in Bahamas will enable to benefit you from the low tax regime in Bahamas as well as grant you high privacy.

In the world when everything is public there still remains the necessity for privacy in business transactions, for which the Bahamas is a perfect location. Company in the Bahamas is formed in economically and politically stable nation, where all paperwork is submitted in English. Companies in the Bahamas are free from a wide range of taxes, for example, income taxes, capital gains taxes, and corporate taxes do not apply to shareholders.

Bahamas has a great 0% corporate tax rate for all foreign profits, great business infrastructure and certainly is one of the best places to retire.

Bahamas Background:

The Bahamas, officially as the Commonwealth of The Bahamas, is a country situated within the Lucayan Archipelago of the West Indies in the Atlantic.

The country is famous for its flexibility on company formation, high confidentiality and competitive tax rates, making it the perfect location for your company.

The Bahamas market economy is primarily dependent on tourism and international financial services, making it one of the most popular places in the region for company setup. The gross national product (GNP) per capita in the Bahamas is also one of the highest in the region.

Company in the Bahamas is a perfect solution for foreign individuals and businesses seeking to do international business, with low tax rates, great economical & financial flexibility and developed secrecy laws to ensure high confidentiality.

Capital city: Nassau

Population: 393,248

Local currency: Bahamian dollar (BSD)

Official language: English / Bahamian English

Business language: English 

Description of Limited Liability Company in the Bahamas (The Bahamas International Business Company (IBC)):

• Liability limited only to shares;
• Unlimited business activities;
• Very high privacy and confidentiality;
• Great as holding companies;
• There is no need to be in the country during or after the process of company formation;
• Foreigners can establish a company in the Bahamas;
• The Bahamas IBC must have at least one shareholder. There are no limits on the nationality or domicile of the shareholder, and corporate shareholders are permissible;
• Shares might be owned in a nominee role or in trust;
• Tax exemptions for all foreign profits;
• There must be at least one director of the Bahamas IBC in place at all times;
• Simple auditing;
• Licence fee to operate the company: 450 USD per year, if the company’s authorized share capital is no more than 50,000 USD. If the following sum is not paid to the registry, company is striked.

Why setup a company in the Bahamas?

• Tax rules

If the Bahamas IBC does not do business in the Bahamas, it is not obliged to submit a company tax return and is not subject to Bahamas taxation. The Bahamian government uses revenue from sources like VAT and stamp taxes, providing companies tax-free environment. The Bahamas IBCs are ]exempt from stamp and estate duties and other taxes for 20 years from their incorporation date.

• Economy

Developments in the Bahamas’ financial systems have contributed to make the country a very profitable business incorporation option for people all over the world. This improvement in the financial and economic climate has also benefited the banking industry, making it easier to open a company bank account n the Bahamas. Establishing a business in the Bahamas may be extremely beneficial to a foreign businessperson due to the country’s stable economy, attractive taxation system, and laws that encourage foreign investors to set up their IBC in the country.

• Confidentiality

The Bahamas preserves the integrity of its companies and shareholders at the highest level. Generally, there is a prohibition of exchange of knowledge on its firms between the Bahamas and any other country. Thus, sensitive corporate information, including business operations, data on shareholders and owners and financial data, would be kept discreet and secure.

• Flexibility

Businesses in the Bahamas are incredibly flexible in terms of both commercial and investment activity, having no limitations to their operations. .

• Strict regulatory environment

Although providing strict confidentiality rules, all Bahamas IBCs are expected to keep accounting records for all transactions. The Bahamas registered agent will just need the location of the accounting records, which may be kept in another country, to meet regulatory requirements. Such accounts are not required to be audited, nor are they required to be publicly filed. There are also strict prohibition of money laundering and other illicit activities.

Tax system in the Bahamas

The Bahamas’ reputation as world’s tax haven is because of its tax-friendly and business-friendly legislation for international companies. The Bahamas tax system implies that residents and resident immigrants do not pay taxes on personal income, inheritance, gifts, or capital gains. Instead, the government earns money through various types of taxation, such as value-added tax (VAT), property taxes, stamp taxes, import duties and license fees. 

DOCUMENTS REQUIRED FOR IBC COMPANY FORMATION IN THE BAHAMAS

For individuals:

• Passport copy of all shareholders;
• Passport copy of all directors;
• Business plan;
• Copy of a recent utility bill not older than three (3) months.

If shareholder is a legal person:

• Copy of Certificate of Incorporation or other similar document; evidencing the entity’s existence; 
• Copy of the Register of Directors;
• Copy of the Register of Shareholders;
• Copy of valid passport of the Directors;
• Copy of a recent utility bill issued no more than three (3) months ago of the Directors;
• Business plan;
• Copy of valid passport of the Shareholders holding 25% or more shares;
• Copy of a recent utility bill issued no more than three (3) months ago of the Shareholders holding 25% or more shares.

For each ultimate beneficial owner (owns at least 25% or more shares):

• Copy of valid passport;
• Copy of a recent utility bill issued no more than three (3) months ago;
• Bank Reference Letter;
• Professional Reference Letter. The professional letter can be issued by an independent professional, such as a lawyer or an accountant

DOCUMENTS REQUIRED FOR COMPANY BANK ACCOUNT IN THE BAHAMAS

• Passport copy of all directors and shareholders.
• Utility bill not older than 3 months.
• CV of the company management.
• Business plan.

Banks may request additional documentation from case to case.

Note: All documents in a foreign language must be translated into English and certified by a qualified translator.

Want to know more about company formation in the Bahamas?

Contact our lawyers in the Bahamas for more information and form a company and open a company bank account in the Bahamas within a couple of weeks. We typically respond in 2 hours.