Located off the south coast of Miami, the islands of the Bahamas have been a prime location for the formation of offshore companies. Since the passing of the International Business Companies (IBC) Act in 1990, thousands of Bahamas IBC’s have been created to help manage and protect assets. A Bahamas IBC enables the principal/individual to transact business globally. In addition to this key benefit, forming a Bahamas Company Offshore means complete freedom from tax. Incorporating in the Bahamas means that the corporation, the owner and the shareholders are exempt from all Bahamian taxes and exchange controls for an incredible 20 years from incorporation.
The Bahamas is a stable developing country, dependent on an economy based on tourism and banking. Tourism alone accounts for more than 60 percent of GDP and directly or indirectly employs half the workforce of the archipelago.
The European Union has confirmed that the Bahamas has not been included in the updated list of non-cooperative jurisdictions for fiscal purposes (known as the EU blacklist), which was published on March 12, 2019.
In the Bahamas, the necessary structural changes that were required were presented, which can be considered a milestone in its fiscal transparency regime, sending a message to the international business community that the Bahamas is a place for legitimate business.
- One director required, who may be a natural person or another legal entity of any nationality or jurisdiction.
- One shareholder required, who may be a natural person or another legal entity of any nationality or jurisdiction;
- Bearer shares are not allowed;
- Registered agent is required;
- No Secretary required;
- A Bahamian IBC is not liable to taxation in the Bahamas;
- No minimum requirement for the share capital;
- Accounting is required to be kept (anywhere in the world);
- Subject to Economic Substance test;
- Details of public knowledge: name of registered agent and registered address, name and address of the director;
- Non-payment of the government fees would cause the company to be struck off and automatically dissolved.
The Law on Commercial Entities (Substance Requirement) entered into force on December 31, 2018. This law requires that certain legal entities that carry out relevant activities demonstrate an adequate economic substance in said jurisdiction.
The relevant activities are:
1) Banking business
2) Insurance business
3) Fund management business
4) Leasing and financial businesses
5) Company headquarters
6) Shipping business
7) Distribution and service center
8) Intellectual property
9) Any holding company that performs or where one or more of its subsidiaries is involved in one of the activities listed in items 1 through 8.
A company that performs a relevant activity is called an “entity included” and is required to demonstrate that it maintains an economic substance in the Bahamas.
Entities Not Included under the Economic Substance regulations.
An entity not included is one that:
- Is a tax resident in another jurisdiction and is administered outside the Bahamas, even if he performs a relevant activity;
- Does not participate in a relevant activity in itself or through any of its subsidiaries;
- It is owned by residents and is managed centrally in the Bahamas, even if it performs a relevant activity.
The current international view of Bahamas by International Organizations.
|International Organization||White List||Grey List||Black List|
Company registration US$1,500.00
- Certificate of Incorporation issued by the local registrar.
- Memorandum and Articles of Association.
- Registered address and Agent.
- Share certificate(s).
- Resolution naming the director and issuing the shares of the company
- Annual license fee
- Registered address and Agent.
- Verification the company complies with local legislation.
|OPTIONAL SERVICES||FEES IN USD|
|Apostille per document or set||US$260.00|
|Notarization of documents (per doc)||US$78.00|
|General powers of attorney (if we provide nominee)||US$250.00|
|Nominee director (yearly) *||US$500.00|
|Nominee shareholder (yearly) *||US$500.00|
|Tax exemption certificate (where applicable)||US$195.00|
|Certifications issued by the Registered Agent||US$260.00|
|Certifications issued by the Registry||US$260.00|
|Transfers in||Please contact us|
|Transfers out (exit fee)||US$400.00|
|Resolutions post incorporation||From $195.00|
* Nominee directors and nominee shareholders are provided by our Panama office. Should you require nominees to be provided in the Bahamas please inform us accordingly.