Nikolai Timofejev
15 years in FinTech and payments. Maps your business model to the right licence scope and leads the file all the way to the SCB decision, including banking and payment rails.
Set up an investment fund in the Bahamas.
The jurisdiction that lets the fund be shaped to the deal: under the Investment Funds Act 2019 the Securities Commission licenses standard, professional, SMART and recognised foreign funds - with SMART Fund Models published as Rules, fast-track licensing for professional and SMART categories, and Nassau an hour from Miami.
27 yrs
on the international marketon the market
60+
in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
Bahamas in brief
Fund models written for mandates, not for templates.
The Investment Funds Act 2019 gives the Securities Commission of The Bahamas four categories to work with - standard funds, professional funds, SMART funds and recognised foreign funds, and the third of those is the jurisdiction's signature. SMART stands for Specific Mandate Alternative Regulatory Test: rather than forcing every strategy into one rulebook, the Commission approves fund models designed for defined mandates, each published as its own set of Rules. The SFM series runs from the early models of 2003 through to SFM 007 in 2012, and each model carries its own conditions on who may invest, how many investors there may be, and what documentation and audit requirements apply. Professional and SMART funds can be fast-tracked at a higher application fee.
The commercial numbers are public: application fees run US$2,000 to US$4,000 depending on the category and whether fast-track is used, annual renewals US$2,750 to US$3,125, plus a US$1,250 principal office fee. Funds renew by 31 January, file audited financial statements within 180 days of fiscal year-end, and appoint a licensed administrator unless self-administered. Around that sits Nassau's real advantage - an hour from Miami, generations of private-banking practice, no income, capital gains or withholding taxes, which is why bespoke family and single-investor structures come here rather than to a template jurisdiction. We choose the model, draft to its Rules and license it.
Fund models written for mandates: under the Investment Funds Act 2019 the SCB licenses standard, professional, SMART and recognised foreign funds, with each SMART Fund Model published as its own set of Rules - the SFM series from 2003 through SFM 007.
Fees US$2,000-4,000 to apply and US$2,750-3,125 annually plus US$1,250 principal office; audited statements within 180 days, renewal by 31 January. No income, gains or withholding tax.
The two builds
The SMART fund - or the professional fund.
SMART where the mandate is specific enough to deserve its own model; professional where a conventional fund for sophisticated investors is what the strategy needs.
The SMART fund model - or the conventional professional fund.
01 - SMART FUND
The mandate-built vehicle
A fund licensed under one of the SMART Fund Models published as Rules by the Commission. Each model with its own conditions on investors, numbers and documentation, and fast-track licensing available.
A fund licensed under one of the SMART Fund Models published as Rules by the Commission. Each model with its own conditions on investors, numbers and documentation, and fast-track licensing available.
- ✓SMART Fund Models - published Rules
- ✓SFM series from 2003 to SFM 007
- ✓Model conditions on investors and numbers
- ✓Fast-track at a higher fee
- ✓Bespoke family and club structures
- ✓Model selected against the mandate
02 - PROFESSIONAL FUND
The conventional vehicle
The professional fund under the 2019 Act for sophisticated investors. A fuller conventional regime, also eligible for fast-track licensing, with standard and recognised foreign funds alongside.
Professional, standard and recognised foreign funds under the 2019 Act. Fast-track available, licensed administrator unless self-administered, 180-day audit.
- ✓Professional fund category
- ✓Standard fund where retail-facing
- ✓Recognised foreign fund route
- ✓Fast-track available
- ✓Licensed administrator unless self-administered
- ✓Audited statements within 180 days
Each SMART Fund Model is a separate set of Rules with its own conditions. We read the applicable model at filing rather than describing SMART funds generically.
Why the Bahamas
Six reasons sponsors choose Nassau.
✓
Models, not templates
The SMART regime approves fund models for defined mandates. The strategy shapes the vehicle rather than the reverse.Mandate shapes the fund.
✓
Fast-track licensing
Professional and SMART funds can be accelerated at a higher application fee. Useful against a real closing date.Speed when it counts.
✓
Published fees
US$2,000-US$4,000 to apply, US$2,750-US$3,125 annually, US$1,250 principal office. The budget is knowable in advance.Budget knowable.
✓
An hour from Miami
US investors, counsel and administrators in the same time zone and a short flight. Diligence gets shorter.Diligence shortens.
✓
No income taxation
No corporate income tax, no capital gains tax, no withholding. The wrapper is fiscally neutral.Neutral wrapper.
✓
Real obligations
Audited statements within 180 days, licensed administrators, annual renewal. The discipline that keeps the flag respected.Why the flag holds.
How it compares
How the Bahamas differs from other fund domiciles.
The comparison in plain terms: fund architecture built to the mandate. With US proximity and no income tax behind it.
Bahamas vs other fund domiciles
| Feature |  Bahamas | Other domiciles |
|---|---|---|
| Design | SMART models per mandate | Standard categories |
| Speed | Fast-track available | Standard queues |
| Fees | US$2,000-4,000 · US$2,750+ | CI$4,125 · EUR 1.25M rules |
| Position | One hour from Miami | Atlantic or European |
Design
BahamasSMART models per mandate
Other domicilesStandard categories
Speed
BahamasFast-track available
Other domicilesStandard queues
Fees
BahamasUS$2,000-4,000 · US$2,750+
Other domicilesCI$4,125 · EUR 1.25M rules
Position
BahamasOne hour from Miami
Other domicilesAtlantic or European
Country by country
| Country | Vehicle | Regulator | Notes |
|---|---|---|---|
| Bahamas | SMART · professional fund | SCB | Models published as Rules |
 Cayman Islands | Mutual and private funds | CIMA | CI$4,125 annual registration |
 Panama | Private / registered company | SMV | Territorial tax, foundation |
 Seychelles | Private · professional · public | FSA Seychelles | US$750-US$1,500 to apply |
BahamasVehicleSMART · professional fund
RegulatorSCB
NotesModels published as Rules
Cayman IslandsVehicleMutual and private funds
RegulatorCIMA
NotesCI$4,125 annual registration
PanamaVehiclePrivate / registered company
RegulatorSMV
NotesTerritorial tax, foundation
SeychellesVehiclePrivate · professional · public
RegulatorFSA Seychelles
NotesUS$750-US$1,500 to apply
Before you launch
What a Bahamas fund actually requires.What a launch requires.
The category decides the rulebook. The checklist below is what a compliant launch covers.
01
Category choice. Standard, professional, SMART or recognised foreign, decided against the actual mandate.
02
SMART model. Where SMART is used, the specific model and its published Rules identified before drafting.
03
Bahamian entity. The fund vehicle formed in the appropriate legal form.
04
Fit-and-proper principals. Directors, officers and owners vetted to ultimate-owner level.
05
Offering documents. Drafted to the category's or model's requirements, including any exemptions relied on.
06
Administrator. A licensed fund administrator appointed unless the fund is self-administered.
07
Auditor. Appointed, with audited financial statements filed within 180 days of fiscal year-end.
08
Application and fees. US$2,000-US$4,000 depending on category and fast-track, plus the US$1,250 principal office fee.
09
Fast-track decision. Used where a closing date justifies the higher fee, not by default.
10
Renewal calendar. Licences renewed by 31 January each year.
11
AML/CFT programme. Bahamian framework with a named officer.
01
Category chosen on mandate.
02
SMART model identified.
03
Bahamian vehicle formed.
04
Principals vetted to UBO.
05
Offering docs to the Rules.
06
Administrator appointed.
07
Auditor, 180-day filings.
08
Fees paid with application.
09
Fast-track judged, not default.
10
Renewal by 31 January.
11
AML officer named.
Reflects the Investment Funds Act 2019, the SMART Fund Rules and the SCB's published fee schedule as of 2026.IFA 2019 + SMART Fund Rules, as of 2026.
How it works
From first call to a licensed Bahamas fund.
01
Mandate and category
What the fund actually does and who invests. Mapped to a SMART model or conventional category.Model matched.
02
Vehicle and principals
The Bahamian entity formed, directors and officers prepared for vetting.Formed and vetted.
03
Documents and providers
Offering documents drafted to the applicable Rules; administrator and auditor engaged.Drafted to the Rules.
04
Application
Filed with fees. Fast-track where the closing date justifies it.Filed with fees.
05
Launch and calendar
Licence issued, subscriptions open, 180-day audit and 31 January renewal calendared.Audit calendar set.
Quick facts
RegulatorSCB
FrameworkInvestment Funds Act 2019
CategoriesStandard · professional · SMART · foreign
SMART modelsPublished as Rules
Application feesUS$2,000-US$4,000
Annual renewalUS$2,750-US$3,125
Principal office feeUS$1,250
Audited statementsWithin 180 days
SMART is not one regime but a series of models, each with its own Rules. Choosing the wrong model is the most common and most expensive mistake here.
On the ground in the Bahamas
Run from our Nassau office.
Prifinance - Bahamas
Nassau · Bahamas
Nassau, New Providence, Bahamas
01
Model selection
The mandate matched to a SMART model or a conventional category. Read from the Rules, not from a summary.Read from the Rules.
02
The SCB file
Offering documents, principals and service providers assembled before the application goes in.Assembled first.
03
Fast-track judgement
Used where a closing date makes the higher fee worth paying, and not otherwise.Judged, not assumed.
04
Administration and launch
Administrator, auditor and banking contracted, with the 180-day and 31 January calendars set.Calendars set.
We also have offices in
Tallinn
Estonia
Roseni 13
Vilnius
Lithuania
Gedimino pr. 2
Prague
Czech Republic
Vlkova 532/8, Žižkov
Dubai
UAE
33 Level, Al Saqr Business Tower
London
United Kingdom
7 Bell Yard
Madeira
Portugal
Rua da Alegria 31, 1F
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of Bahamas funds.
No income taxation at any level. The obligations here are regulatory rather than fiscal.
No corporate income tax
Fund and manager profits are untaxed at entity level. The Bahamian position in one line.Entity level clean.
No capital gains tax
Realisations sit outside any charge, which is what makes the wrapper neutral for pooled capital.Realisations outside.
No withholding taxes
Distributions leave clean to investors anywhere. The neutrality a fund requires.Clean distributions.
VAT on domestic supplies
The indirect layer touches local consumption, not international fund business.Not on fund business.
Fees are the relationship
Licence, renewal and principal office fees. A known annual number rather than a computation.Known annually.
Investor-level analysis
Subscribers are taxed where they live. The documentation is built with their residences in mind.Residence decides.
Tax summary
Corporate income taxNone
Capital gains taxNone
Withholding taxesNone
VATDomestic supplies
State chargesLicence + renewal + office fees
*Position as of 2026 per Bahamian law and the SCB schedule. Investor-level outcomes are modelled per structure.
Turnkey professional support
Experienced lawyers and international consultants.
We provide end-to-end support, from company registration and the application file to regulatory interaction and compliance oversight - with an individualized approach to each client.
Oleksii Kindratenko
Builds the application itself: Bahamian vehicle, AML/KYC policy pack, capital structure and tax registrations. His document sets are the reason reviews finish in months, not years.
Eugeniu Bevziuc
First point of contact for international founders. Runs the whole setup remotely, across time zones and languages - from the first call to a live fund.
Follow Prifinance
Active across our channels.
Bahamas · SCB
Launch your Bahamas fund with expert support.
Full-service assistance - from model selection and documentation to SCB licensing, administration and launch - run through our Nassau office.
Get a consultation →Free legal opinion
Which fund model fits your mandate?
Our legal team will analyze your case at no cost and provide a written legal opinion: which vehicle, jurisdiction, or route fits your fund.
Written assessment within 2-5 business days
Request a free conclusion →FAQ
The Bahamas fund - the questions we hear.
What categories of fund exist?+
Under the Investment Funds Act 2019: standard funds, professional funds, SMART funds and recognised foreign funds. The Securities Commission licenses or registers them according to the category.
What is a SMART fund?+
A Specific Mandate Alternative Regulatory Test fund. Rather than one rulebook for every strategy, the Commission approves fund models for defined mandates, each published as its own set of Rules - the SFM series running from the early models of 2003 through SFM 007.
How do I know which model applies?+
By reading the Rules for each model against the actual mandate - who invests, how many, what documentation and audit obligations apply. Choosing the wrong model is the most common and most expensive mistake in this jurisdiction.
What does it cost?+
Application fees run US$2,000 to US$4,000 depending on category and whether fast-track is used, annual renewals US$2,750 to US$3,125, plus a US$1,250 principal office fee.
What is fast-track licensing?+
Professional and SMART funds can be licensed on an accelerated basis at a higher application fee. Worth paying against a real closing date; not worth paying without one.
What ongoing obligations apply?+
Annual renewal by 31 January, audited financial statements within 180 days of fiscal year-end, prompt reporting of material changes, and a licensed administrator unless the fund is self-administered.
How are Bahamas funds taxed?+
No corporate income tax, no capital gains tax and no withholding. VAT touches domestic supplies only. The annual cost is licence and renewal fees rather than a tax computation.
Bahamas or Cayman?+
Cayman is the institutional default with the largest fund population; the Bahamas offers SMART models for mandates no template covers and an hour's flight from Miami. Allocator expectations decide - we say which fits before you commit.
Can the fund be self-administered?+
In defined cases, yes - otherwise a licensed fund administrator must be appointed. We assess that against the category and the model at design.
Why Prifinance for the Bahamas?+
The model read from its Rules before anything is drafted, fast-track used only where it earns its fee, and the audit and renewal calendars set on day one - from our Nassau office.
Which categories?+
Standard, professional, SMART, foreign.
SMART fund?+
Model per mandate, own Rules.
Which model?+
Read against the mandate.
Cost?+
US$2-4k; US$2.75-3.1k/yr.
Fast-track?+
Higher fee, real speed.
Ongoing?+
180-day audit, 31 Jan.
Taxes?+
None on income.
Or Cayman?+
Design vs default.
Self-administered?+
In defined cases.
Why you?+
Model read first.
Client notes
Google4.7★★★★★
Founders who wanted it done right.
Google4.7★★★★★
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Google
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Google
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Get a free legal opinion on your project - our legal team will analyze your case at no cost and provide a written legal opinion: which jurisdiction, licence scope, or route fits your business.Free legal opinion: which Bahamas model fits your mandate and what it will cost.
✓Written legal opinion within 2-5 business days - free of charge✓A clear recommendation on the right licence scope, not a sales pitch✓Transparent fixed fees, confirmed up front✓EN · RU · ES speaking team
Prifinance is an independent law and advisory firm. We are not a regulator and are not affiliated with, endorsed by, or acting on behalf of Securities Commission of The Bahamas or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.