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 central bank's licence, including banking and payment rails.
Get a payment license in The Bahamas.
The Bahamas licenses non-bank payment business under the Payment Instruments (Oversight) Regulations 2017, made under the Payment Systems Act 2012. One payment institution licence covers the field, on B$100,000 of unimpaired capital under the Central Bank of The Bahamas guidelines, with a separate non-bank money transmission service provider licence at B$50,000 and a licence for each agent. Electronic money must sit in full in a custodian account and stays the property of the user, and no single instrument may carry more than B$15,000. Regulation 6(4) gives the central bank forty-five days from a completed application. Three e-money providers and five money transmission providers hold licences today.
27 yrs
on the international marketon the market
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in-house specialistsspecialists
400+
Licenses obtainedlicenses obtained
Updated
The Bahamas in brief
A 2017 regulation, a custodian account, and a clock that actually runs.
The licensing instrument is not the Payment Systems Act 2012 itself but the Payment Instruments (Oversight) Regulations 2017 made under it. Regulation 3 puts every non-bank payment service provider under the Central Bank of The Bahamas: one payment institution licence, no classes, with the application form recording only whether the scope is domestic transmission or international and domestic transmission. The Regulations leave capital to the central bank, which specifies B$100,000 of unimpaired capital in its licensing guidelines. Beside it sits a second, older route - the non-bank money transmission service provider licence under the Banks and Trust Companies Regulation Act 2000 and the 2008 money transmission regulations, on B$50,000 of unimpaired capital, with money transmission agents licensed separately again. Regulation 5(e) shapes any e-money product here: electronic money shall not be insured individually and must be deposited in full, one hundred percent, in the banking system in a custodian account, and regulation 5(f) leaves those funds the property of the payment service users. Regulation 7(2)(ii) caps a single payment instrument at B$15,000 of value, and regulation 7 also bars deposit-taking, foreign exchange dealing and lending.
Regulation 6(4) gives the central bank forty-five days to determine an application from the date it received the completed application - a clock printed in the instrument, which is rarer than it sounds in this region. The guidelines for money transmission providers add a second figure: average processing time of two months. Fees are flat. Ten thousand dollars to license a payment institution and ten thousand a year to continue it; a money transmission service provider pays $5,000 a year, an agent $300, plus $250 for each location at which the agent operates. The register is short. At 17 July 2026 the central bank's supervised institutions list carried three electronic money service providers, five non-bank money transmission service providers and thirteen money transmission agents. Sand Dollar, the central bank's digital currency, runs beside them: a Tier I wallet holds B$500 and moves B$1,500 a month without a government ID, a Tier II wallet holds B$8,000 and moves B$10,000 with one. Two senior officers must be resident in The Bahamas. Tax is the other half of the case, and we set it out below.
The Payment Instruments (Oversight) Regulations 2017 give the central bank one payment institution licence on B$100,000 of unimpaired capital. Electronic money goes in full into a custodian account under regulation 5(e) and stays the user's property. A single instrument is capped at B$15,000 under regulation 7(2)(ii).
Regulation 6(4): forty-five days from a completed application. Fees $10,000 on licensing and $10,000 a year; money transmission providers pay $5,000, agents $300 plus $250 a location. Three e-money providers, five transmission providers and thirteen agents at 17 July 2026. We run it from London.
The routes
Payment institution, money transmission provider - and the agent licence beneath both.
Two licences under two statutes, at two price points, plus a separate licence for every agent you appoint. We fix the route first, then build once.
Payment institution for e-money, or the B$50,000 money transmission licence.
01 - PAYMENT INSTITUTION
Non-bank payment service provider
The licence under regulation 3 of the Payment Instruments (Oversight) Regulations 2017 for payment services and the issuance of electronic money - B$100,000 of unimpaired capital under the central bank's guidelines, the full float in a custodian account, and a determination within forty-five days of a completed application.
The licence under regulation 3 of the Payment Instruments (Oversight) Regulations 2017 for payment services and the issuance of electronic money - B$100,000 of unimpaired capital under the central bank's guidelines, the full float in a custodian account, and a determination within forty-five days of a completed application.
- ✓Payment services and electronic money issuance
- ✓Capital B$100,000 unimpaired (central bank guidelines)
- ✓E-money deposited in full in a custodian account (reg. 5(e))
- ✓Instrument value capped at B$15,000 (reg. 7(2)(ii))
- ✓Determination within 45 days (reg. 6(4))
- ✓Fees $10,000 on licensing · $10,000 a year
02 - MONEY TRANSMISSION
MTSP - B$50,000Non-bank money transmission service provider
The older route, under the Banks and Trust Companies Regulation Act 2000 and the 2008 money transmission regulations - B$50,000 of unimpaired capital, insurance cover instead of a custodian account, and a network of agents each licensed and priced on its own.
MTSP: B$50,000 unimpaired capital; insurance instead of a custodian account; $5,000 a year; agents $300 plus $250 a location.
- ✓Money transmission under the 2008 regulations
- ✓Capital B$50,000 unimpaired minimum
- ✓Insurance cover matched to the nature and scale of the business
- ✓Annual fee $5,000 · agent $300 · $250 for each location
- ✓A company under the Companies Act 1992, or five individuals
- ✓Average processing time of two months
Costs and timelines are confirmed for your case before any work begins. The $10,000 licence fee and the $10,000 annual continuance sit in the First Schedule; the custodian account, the insurance cover and Bahamian substance are itemised in your quote.
Why The Bahamas
A printed decision period and client money that stays the client's.
Most of the region gives a supervisor an open-ended review and says nothing about customer funds. The Bahamas does the opposite on both counts, and prices the entry in five figures.
✓
Forty-five days in the text
Regulation 6(4) requires the central bank to determine an application within forty-five days of receiving the completed application. Neither Cayman nor Bermuda nor the BVI prints a period at all.A clock printed in regulation 6(4).
✓
The float is the user's
Regulation 5(e) sends the whole value of electronic money into a custodian account in the banking system, and regulation 5(f) keeps it the property of the payment service users.The float stays the user's property.
✓
Two routes, two price points
A payment institution pays $10,000 a year to hold the licence; a money transmission service provider pays $5,000. The right route depends on whether you issue stored value.$10,000 a year, or $5,000.
✓
Twenty-one names on the register
Three electronic money service providers, five non-bank money transmission service providers and thirteen agents at 17 July 2026 - a supervisor that reads each file itself.A short register at July 2026.
✓
A central bank digital currency already live
Sand Dollar had B$1.7 million in circulation and 118,955 personal wallets at December 2023, on a B$500 Tier I wallet and a B$8,000 Tier II wallet. A licensee can design around it.A live central bank digital currency.
✓
No corporate income tax
The government's own top-up tax consultation paper describes Bahamian entities as having an effective tax rate of 0%. VAT is 10% and business licence tax runs on turnover.VAT 10%, licence tax on turnover.
How it compares
How The Bahamas differs from the other Caribbean routes.
The four British-linked financial centres in this table sell four different bargains on capital, client money and time. The honest comparison is below.
The Bahamas vs other jurisdictions
| Feature |  The Bahamas | Other jurisdictions |
|---|---|---|
| Capital | B$100,000 · MTSP B$50,000 | $30,000 in Cayman · in the Code in the BVI |
| Decision period | 45 days from a completed application | None printed in Cayman, the BVI or Bermuda |
| Client money | E-money 100% in a custodian account | No rule in Cayman · barred in Bermuda |
| Tax | No corporate tax · VAT 10% | No direct taxes in Cayman and the BVI |
Capital
The BahamasB$100,000 · MTSP B$50,000
Other jurisdictions$30,000 in Cayman · in the Code in the BVI
Decision period
The Bahamas45 days from a completed application
Other jurisdictionsNone printed in Cayman, the BVI or Bermuda
Client money
The BahamasE-money 100% in a custodian account
Other jurisdictionsNo rule in Cayman · barred in Bermuda
Tax
The BahamasNo corporate tax · VAT 10%
Other jurisdictionsNo direct taxes in Cayman and the BVI
Country by country
| Country | License type | Taxation | Requirements |
|---|---|---|---|
| The Bahamas | Payment institution (central bank) | No CIT · VAT 10% | B$100,000 · 45-day decision |
 Cayman Islands | Money services business (CIMA) | No direct taxes | Net worth $30,000 · 4-6 weeks |
 British Virgin Islands | Financing and money services (FSC) | No CIT · payroll 10-14% | Seven classes · capital in the Code |
 Bermuda | Money service business (BMA) | 15% above EUR 750M | No client money held (s. 11(3)) |
The BahamasLicense typePayment institution (central bank)
TaxationNo CIT · VAT 10%
RequirementsB$100,000 · 45-day decision
Cayman IslandsLicense typeMoney services business (CIMA)
TaxationNo direct taxes
RequirementsNet worth $30,000 · 4-6 weeks
British Virgin IslandsLicense typeFinancing and money services (FSC)
TaxationNo CIT · payroll 10-14%
RequirementsSeven classes · capital in the Code
BermudaLicense typeMoney service business (BMA)
Taxation15% above EUR 750M
RequirementsNo client money held (s. 11(3))
Before you apply
Requirements for the central bank licence.Requirements for the licence.
Regulation 3 sets the licensing conditions and regulation 4 the documents; the central bank's guidelines add the capital figure and the substance. The checklist below is what a passing file contains.
01
A company incorporated under the Companies Act 1992 - the payment service provider guidelines say only such companies may apply for a licence to provide payment services.
02
B$100,000 of unimpaired capital evidenced at application for a payment institution, or B$50,000 for a non-bank money transmission service provider.
03
The documents regulation 4 lists: a business plan, a description of the services, the IT systems, AML policies, consumer-protection arrangements, shareholders, directors and the articles.
04
A custodian account arrangement that meets regulation 5(e) - the full value of electronic money deposited in the banking system, held separately from the provider's own funds and insulated against claims.
05
Payment instruments denominated in Bahamian dollars and capped at B$15,000 of value, unless the central bank authorises an exception under regulation 7(2)(ii).
06
A business model that takes no deposits, deals in no foreign exchange and grants no loans, since regulation 7 bars all three to a payment institution.
07
Two senior officers resident in The Bahamas, and physical facilities in the country adequate to the scale of the business.
08
Directors, shareholders and senior executives who pass the fit-and-proper test on probity, integrity and experience.
09
AML and counter-financing policies, which regulation 3 makes a minimum condition of licensing rather than a post-licence exercise.
10
Agents identified and separately licensed, with the $300 agent fee and $250 for each location budgeted from the start.
01
Company under the Companies Act 1992.
02
Capital B$100,000, or B$50,000 for an MTSP.
03
Regulation 4 documents and business plan.
04
Custodian account under regulation 5(e).
05
Instruments in B$, capped at B$15,000.
06
No deposits, no FX dealing, no lending.
07
Two senior officers resident in The Bahamas.
08
Fit-and-proper directors and shareholders.
09
AML policies as a licensing condition.
10
Agents licensed; $300 plus $250 a location.
Reflects the Payment Instruments (Oversight) Regulations 2017 under the Payment Systems Act 2012, the Banks and Trust Companies Regulation Act 2000 with the 2008 money transmission regulations, and the central bank's licensing guidelines, as of 2026.Payment Instruments (Oversight) Regulations 2017; Payment Systems Act 2012; BTCRA 2000 with the 2008 money transmission regulations; central bank guidelines.
How it works
From first call to the supervised institutions list.
01
Route and strategy
Payment institution or money transmission provider; the agent network; the capital figure - route and budget fixed in writing.Payment institution or MTSP - in writing.
02
Company and capital
Bahamian company incorporated under the Companies Act 1992, unimpaired capital paid in, directors and shareholders documented.Incorporated, capital paid, officers named.
03
The application file
Regulation 4 documents assembled, custodian account arrangement agreed with a Bahamian bank, AML policies written - complete before filing.Regulation 4 pack; custodian arrangement.
04
Central bank review
The forty-five-day determination runs from the completed application; question rounds answered - plan on six to nine months end to end.45 days from complete; 6-9 months realistic.
05
Licence and launch
Licence granted, entry on the supervised institutions list, custodian account funded, agents licensed and the continuance fee calendar running.Listed, funded, agents licensed.
Quick facts
RegulatorCentral Bank of The Bahamas
LawPayment Instruments (Oversight) Regulations 2017
LicencePayment institution · MTSP · agent
CapitalB$100,000 · MTSP B$50,000
Decision45 days (reg. 6(4))
Fees$10,000 licence · $10,000 a year
Timeline6-9 months realistic
TaxNo corporate tax · VAT 10%
The forty-five-day clock runs from the completed application, which is where applicants lose time. The central bank's moratorium on new payment and money transmission applications, imposed in November 2020, was lifted with effect from 31 October 2022.
Your Bahamas desk
Run from our Caribbean desk.
Prifinance - Caribbean desk
London · coordinating Bahamian mandates
7 Bell Yard, London
01
Bahamian company formation
A company under the Companies Act 1992 with the capital the route requires - B$100,000 for a payment institution, B$50,000 for a money transmission provider - paid in and evidenced.Companies Act 1992; capital paid in.
02
The central bank file
Business plan, service description, IT systems, AML policies, consumer protection, shareholders and directors under regulation 4, drafted by us and defended through the question rounds.Regulation 4 answered in order.
03
Custodian account and rails
The custodian account opened under regulation 5(e) before launch, the B$15,000 instrument cap built into the product, and Sand Dollar integration scoped where it fits.Opened before launch; B$15,000 cap built in.
04
Substance in Nassau
Two resident senior officers, premises and the compliance function - the presence the licence is conditioned on, not an afterthought.Two resident officers, premises, compliance.
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
Madeira
Portugal
Rua da Alegria 31, 1F
Budapest
Hungary
Korányi Sándor u. 4
Istanbul
Turkey
Perpa Ticaret Merkezi, A Blok
Good to know
Taxation of payment companies in The Bahamas.
No corporate income tax, 10% VAT, and a business licence tax charged on turnover rather than profit - with a 15% top-up tax reserved for very large groups.
No corporate income tax
The government's own consultation paper on the top-up tax describes Bahamian constituent entities as having an effective tax rate of 0%. Profit is not taxed.Effective rate of 0% on profit.
VAT 10%
The standard rate since the 2015 implementation, with exports zero-rated. Which parts of a payment product fall inside the charge is mapped before launch.Exports zero-rated.
Business licence tax on turnover
Turnover up to $50,000 pays $100; $50,001 to $500,000 pays 0.50%; above $500,000 up to $5 million pays 0.75%; above $5 million pays 1.25%. It is charged on revenue, not profit.$100 to 1.25% of turnover.
Top-up tax 15%
The Domestic Minimum Top-Up Tax Act 2024 sets a 15% minimum effective rate for groups with at least EUR 750 million of annual turnover, incorporating the OECD model rules by reference.Groups above EUR 750 million.
Dividend withholding
The Bahamian tax code we read prints no withholding rate on dividends to non-residents. We confirm the position for your structure rather than quote a rate that is not there.No rate stated in the code.
The licence year
A business licence expires on 31 December with a grace period to 31 January, and the central bank's $10,000 continuance is charged per calendar year. Both dates go into the compliance calendar.Expires 31 December.
Tax summary
Corporate income taxNone
VAT10% · exports zero-rated
Business licence tax$100 · 0.50% · 0.75% · 1.25% by turnover
Top-up tax15% above EUR 750 million
Dividend withholdingNo rate stated in the code
Licence yearExpires 31 December · grace to 31 January
*Figures as of 2026 per the Department of Inland Revenue. Treaty and regime positions are assessed 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 company, 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, licensed payment institution.
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The Bahamian payment licence, answered.
What licence does a payment business need in The Bahamas?+
A payment institution licence from the Central Bank of The Bahamas under regulation 3 of the Payment Instruments (Oversight) Regulations 2017, if you provide payment services or issue electronic money. Money transmission on its own is licensed separately as a non-bank money transmission service provider under the Banks and Trust Companies Regulation Act 2000. Agents hold their own licence.
How much capital is required?+
B$100,000 of unimpaired capital for a payment institution, set in the central bank's application guidelines rather than in the Regulations themselves - regulation 3(3)(a) leaves capital to whatever the central bank specifies in writing. A non-bank money transmission service provider maintains B$50,000.
How is electronic money protected?+
Regulation 5(e) requires electronic money to be deposited in full, one hundred percent, in the banking system in a custodian account, and forbids insuring it individually. Regulation 5(f) leaves those funds the property of the payment service users, held under fiduciary duties, so they are insulated from claims against the provider.
Is there a cap on a payment instrument?+
Yes. Regulation 7(2)(ii) prohibits a payment institution from issuing an instrument valued above B$15,000 or allowing that value to be transferred, though the central bank may authorise exceptions. Instruments must be denominated in Bahamian dollars only.
How long does the central bank take?+
Regulation 6(4) requires a determination within forty-five days of the completed application. For money transmission providers the guidelines quote an average processing time of two months. From first call to a live licence, plan on six to nine months including preparation.
What does the licence cost?+
The First Schedule sets $10,000 to license a payment institution and $10,000 for annual continuance per calendar year. A money transmission service provider pays $5,000 a year and each agent $300, plus $250 for every location where the agent operates.
What substance does the central bank expect?+
At least two senior officers resident in The Bahamas and physical facilities in the country, under the payment service provider guidelines. Directors, shareholders and senior executives are assessed on probity, integrity and experience before the licence issues.
Is there an instant payment rail?+
Not yet. The central bank ran a procurement for a fast payment system solution under reference CDFPS202501, with vendor questions published in December 2025. Sand Dollar, the central bank digital currency, is live in the meantime with a B$500 Tier I wallet and a B$8,000 Tier II wallet.
How are payment companies taxed?+
There is no corporate income tax. VAT is 10% with exports zero-rated, business licence tax runs on turnover from $100 to 1.25%, and a 15% domestic minimum top-up tax applies to groups with at least EUR 750 million of annual turnover.
Why The Bahamas rather than the Cayman Islands or Bermuda?+
The Bahamas is the only one of the three with a statutory decision period and a custodian-account rule for e-money, and it has a live central bank digital currency. Cayman is cheaper to enter at $30,000 of net worth and quicker at four to six weeks; Bermuda has lower annual fees but forbids holding client money entirely. If your product holds a float, this is the jurisdiction of the three that contemplates it.
Which licence?+
Payment institution, or MTSP for transmission only.
Capital?+
B$100,000; MTSP B$50,000.
Client funds?+
E-money 100% in a custodian account.
Instrument cap?+
B$15,000 under regulation 7(2)(ii).
How long?+
45 days from complete; 6-9 months realistic.
Fees?+
$10,000 licence, $10,000 a year.
Substance?+
Two resident senior officers and premises.
Instant rail?+
None yet; Sand Dollar is live.
Taxes?+
No CIT, VAT 10%, licence tax on turnover.
vs Cayman / Bermuda?+
The only one with a clock and a float rule.
Client notes
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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 the Central Bank of The Bahamas or any other public authority. Authorisations are granted by, and obtained directly from, the competent authorities.