Bahamas – traditional and respected offshore jurisdiction
Bahamas is an archipelagic state in North Atlantic. The government system is parliamentary constitutional monarchy. Nassau is the capital and the largest city. Population is estimated to be around 400,000 people. English is the official language. Local currency is Bahamian dollar (BSD) which is pegged to USD on a 1:1 basis.
The advantages of doing business in the Bahamas
- Politically stable Westminster based parliamentary system;
- Legal system based on English Common Law;
- Advanced economy based on tourism, industry and financial services;
- Free economic zones with a special tax regime;
- Flexible tax system;
- No taxes on income, capital gains, on wealth;
- Low social security tax rates (3.9% and 5.9%);
- World class modern infrastructure;
- Highly skilled workforce;
- International financial reporting standards are used ubiquitously.
Price structure for company formation in the Bahamas[table “412” not found /]
Types of companies
Public and private corporations, limited liability companies, full and exempted limited partnerships, foundations and trusts, international business companies (IBC).
The Bahamas International Business Company is commonly the preferred type of business entity.
Key features of the Bahamas International Business Company
- No required fixed amount of authorised capital;
- Only one subscriber is required to form the company;
- Various types of shares are permitted to be issued;
- Company registers are closed to the public;
- One company director of any nationality, corporate or individual is needed;
- Company meetings may be convened anytime and anywhere;
- Any company local or foreign may continue as an IBC in Bahamas;
- A Bahamian IBC may change its domicile at any time;
- A Bahamian IBC may merge with another IBC resulted in a new IBC;
- A Bahamian IBC may merge with any foreign company;
- The company is free from any licence fees;
- Company transactions are not under any currency control requirements;
- Bahamian IBC is exempted from all income taxes, and capital gains tax;
- The company shareholders are free from inheritance and gift taxes, stamp duty and currency control measures;
- A Bahamian IBC needs to pay annual renewal fee before January 31 of the next calendar year.
Generally, it is forbidden for a Bahamian IBC to do business with the residents and hold or lease property there except for the company office maintenance aims.
The company may not operate as bank, insurance and trust.
A Bahamian IBC is not permitted to share its registered office with other companies.
In relation with the residents of the Bahamas, a Bahamian IBC is allowed to:
Make loans and other contributions to the local business structures.
Contact with consultants, lawyers, accountants and other specialists on professional issues.
Keep financial records there.
Hold company meetings in the Bahamas.
Hold shares and other securities or serve as a custodian for other companies’ shares in the Bahamas.
Accounting, Audit and Filing requirements