The Bahamas may appear more than suitable jurisdiction if you are looking for options to conduct financial services. This offshore jurisdiction ensures the required level of confidentiality and advantageous taxation approaches. This short overview may guide you about the procedure of establishing a company in the Bahamas.
Forms of Legal and Business Presence
If you consider the Bahamas as your potential target jurisdiction, you may establish here your business presence in these forms:
- International Business Company (IBC) – a vehicle that can be founded by foreign natural and legal persons who bear liability for the entity’s undertakings solely within their contributions. This entity can be established for conducting business operations and management of other entities aboard. The minimum statutory capital for this vehicle is USD 50,000. As its title suggests, this company is treated as international.
- Limited Liability Company (LLC) – is a vehicle that considered being local for the purpose of business conduction. So, it has to obtain a business license to run business in the Bahamas. The liability of founders (shareholders) of all undertakings is restricted to (i) the amount of funds paid to this company or (ii) guarantee.
- Public Company – this vehicle is similar to LLC but a compulsory annual audit has to be provided. It is also more complex to operate as three directors are required. This vehicle may appear a good option for large business.
- General Partnership – this vehicle can be formed by at least two persons whose liability for all undertakings is not restricted. Their personal property also can be called.
- Limited Partnership – a business arrangement that has to be conducted by at least two persons. This formation should have a (i) general partner whose liability for all undertakings is not restricted and (ii) limited partners who is liable for the partnership’s undertakings within the amount of their contributions only.
- Trusts – a vehicle designated to protect a certain kind of assets, including in other countries.
Registration Requirements and Steps
For the registration of a company in the Bahamas, IBC for instance, you may need to pass these preliminary steps:
- Defining your commercial priorities in the Bahamas and structuring your business respectively.
- Collecting information about founders and beneficial owners as IBC is required to hold respective registers without making them publicly available.
- Choosing and approving the name of a future company.
- Arranging the registration address.
- Drafting statutory documents and registration forms for the prospective IBC.
- Submitting documents to the Registrar of Companies.
- Opening a bank account.
Legal and Regulatory Framework
Generally, the Bahamas have a favourable legal environment for doing business. In 2018, it made a great emphasis on compliance with the OECD requirements but it can be considered as one of the most favourable form the point of confidentiality. The main legal acts in the business area are the International Business Companies Act, the Register of Beneficial Ownership Act, the Commercial Entities (Substance Requirements) Act.
Advantages of the Jurisdiction
If you consider an option of forming a company in the Bahamas, you may potentially enjoy these basic benefits:
- Comparatively simple procedure for establishing and running a business
- Great emphasis on ensuring privacy
- Extra opportunities for conducting import operations in certain markets
- Developed tourism and banking industries
- Absence of currency control
If you think about registering a company in the Bahamas, you may need to know this information on taxes:
- Corporate income tax (CIT) rate – not applicable (N/A)
- Personal income tax (PIT) rate – N/A
- VAT – 0% or 12%
- Capital gains tax rates – N/A
- Withholding tax rates for non-residents – N/A
How Prifinance Specialists May Help You
If you consider the Bahamas as your target jurisdiction, Prifinance specialists may consult your further on the registration process and assist you with reaching your business goals in this jurisdiction. Our professionals are also ready to open a bank account and resolve any other matters that may potentially arise. Reach us shortly for more precise discussions.