Company formation in the Bahamas Overview
The Commonwealth of the Bahamas is the richest country in the Caribbean region, and its location has also contributed to this. The Bahamas signed tax information exchange agreements with 34 countries, including the United States, in 2002.
The tax system is designed to meet the needs of foreign investors and offers a number of advantages: no currency controls, zero taxes on income and capital gains, and no inheritance tax. The Bahamas Investment Authority (BIA) promotes investment and helps companies obtain licenses under the Commercial Enterprises Act (CEA) and the International Business Companies Act 2000.
Time to register a company
around 5 weeks
Average register a company timeline
Average capital
no minimum
The minimum capital
Tax rate
0%
Income tax rate
More than a third of the world’s financial institutions operate in this jurisdiction, and one in five global corporations open accounts here. Since 2022, the Bahamas has also begun to position itself as a center for financial technology development, introducing the use of digital currency in accordance with the Digital Assets and Registered Exchanges Act (DARE).
A long-standing stable political system and a favorable tax environment provide businesses with advantageous conditions for registering a company in the Bahamas.
General information
| Country name | The Bahamas |
| Capital | Nassau |
| Official language | English |
| Currency | Bahamian dollar (BSD) |
| Time zone | Eastern Standard Time (UTC-5) |
| Business entities | Limited liability companies, limited partnerships, and limited liability companies (LLCs) |
| Regulatory authority | Department of the Registrar General |
| Foreign ownership | 100% foreign ownership is permitted. |
Advantages of registering a company in the Bahamas
Zero taxes for offshore companies.
To attract more investors, the government has set zero taxes on capital gains, profits, VAT, and stamp duty, and has abolished currency controls.
Minimal requirements for company registration.
One director and one shareholder are sufficient to conduct business.
No financial reporting required.
According to the law, companies are not required to submit annual financial reports.
High confidentiality.
Information about company managers and owners is recorded in registries but is not subject to public disclosure.
There are no requirements for authorized capital.
The amount of capital affects the subsequent payment of license fees. The cost of registering a company in the Bahamas is minimal.
Geographical location.
The islands are located between North and South America, serving as a kind of economic bridge that promotes cooperation between countries.
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Our experts will accompany you at every stage of the opening process, ensuring its smoothness and efficiency.
Requirements for company registration in the Bahamas
The process of registering a company in the Bahamas is governed by the International Business Companies Act 2000, as amended in 2004. The main requirements and documents necessary for company registration include the following:
- Organizational structure. The company must have at least one managing director (there are no residency requirements; the director can be either a legal entity or an individual), one shareholder, and a secretary (optional).
- Registered office and agent. A registered office must be opened in the Bahamas to store official documents. In accordance with the Beneficial Ownership Registry Act of December 20, 2018, hiring a registered agent is mandatory.
- Licensing. Depending on the nature of the business, special licenses may be required:
- Financial services and investment funds require a license from the Financial Commission.
- The pharmaceutical business requires a permit from the Ministry of Health.
- Tourism-related activities require approval from the Ministry of Tourism.
- International business companies (IBCs) may register banking and insurance activities, but all operations must be conducted outside the Bahamas.
- Corporate records. Maintenance of shareholder registers and minutes of shareholder meetings.
- Authorized capital. The amount of authorized capital varies depending on the legal form of the company. Government fees also depend on the amount of capital:
- Up to US$50,000: registration fee of US$350.
- Over US$50,000: registration fee of US$1,000.
Banking
| State-owned banks | The banking sector is mainly privately owned; state participation is limited. |
| Central bank | The Central Bank of the Bahamas oversees monetary policy and financial regulation. |
| Number of banks | There are about 20 licensed banks providing a wide range of financial services. |
| Credit rating | BB rating from S&P, indicating moderate credit risk. |
| Corruption | Overall low level of corruption; the Bahamas ranks 29th in the world according to Transparency International. |
| Judicial system | Independent judicial system based on English common law; fair and effective legal framework. |
Types of companies in The Bahamas
Many types of companies can be established in this jurisdiction. The most popular choices are international business companies (IBCs), trusts, and LLCs. Each option has its own advantages and requirements:
International business company (IBC):
- Authorized capital – US$50,000;
- The name may use the abbreviations: Ltd, Limited, Corp.;
- The organizational structure must include at least one director and one shareholder;
- Must have a local office and a licensed agent;
- Pay a state fee depending on the size of the authorized capital;
- Tax benefits;
- If income exceeds $850 million, a financial report must be submitted to the Ministry of Finance.
Limited liability company (LLC):
- No capital requirements;
- No corporate tax;
- No requirement to hold board meetings;
- Most often chosen by international companies and investors because of the taxation system;
Single Account Company (SAC):
- No capital requirements;
- No corporate tax;
- International businesses are established when it is necessary to separate assets, build a complex financial structure, and protect investments from cross-liability.
Exempt Limited Partnership (ELP):
- No capital requirements;
- No corporate tax;
- There is a capital tax;
- Requires a general partner and one limited partner;
- For international business, it is interesting as an instrument in which general partners have unlimited liability and limited partners have protected personal assets.
Private funds:
- Authorized capital of US$10,000;
- No taxes;
- Used by wealthy families to protect assets that are subsequently transferred to heirs, while retaining control over the activities of the funds.
Types of companies
| Limited liability company The most common type | requires at least one shareholder and offers limited liability protection. |
| Limited liability company (LLC) Combines features of corporations and partnerships | provides flexible management. |
| Limited partnership Requires at least one general partner and one limited partner | often used for investment purposes. |
Information for directors and shareholders
| Minimum number of directors | Requires at least 1 director; this may be a natural or legal person. |
| Shareholder residency requirement | There are no residency requirements for shareholders; they may be non-residents. |
| Entry of data in the public register | Basic information about directors and shareholders is entered into the public register. |
| Bearer shares | Bearer shares are permitted but subject to strict rules; disclosure is mandatory. |
Ready to Start Your Company in The Bahamas?
Our experts will accompany you at every stage of the opening process, ensuring its smoothness and efficiency.
Company formation process in the Bahamas
Registering a company in the Bahamas consists of several stages and can take around 5 weeks.
Select the type of business
Before registering a legal entity, it is important to familiarize yourself with the requirements of local legislation. Some types of activities require permits from local authorities.
Decide on a name
It is prohibited to use the words “Royal” or “Imperial” associated with the government, as well as to repeat the names of already registered companies. Abbreviations such as Ltd, Corp, Inc., SA, and AG are permitted.
Company Registration
Gather documents about the company (memorandum of association, articles of association, contracts, registers, certificates), about the director and shareholders for the KYC procedure, and prepare documents confirming the existence of a local office. Submit an application to the registrar.
Opening a corporate bank account
A wide range of banks in the territory offer a number of opportunities:
Obtaining a business license
For some types of activities (tourism, finance, pharmaceuticals), you must obtain an official license from the Ministry of Finance, Department of Revenue. You can apply online. You must also pay an annual state fee to renew the license. The annual tax ranges from 0.5% to 1.25% for a turnover of more than $5 million.
Compliance with local legislation
Each employee must be registered with the National Insurance Council and pay monthly contributions. No audit is required. According to the new changes, companies are required to submit country-by-country reporting (CBCR) to the Ministry of Finance for all areas of their activities.
Bahamas company registration Packages
Required documents for company formation in the Bahamas
When incorporating a company in Seychelles, it is important to remember that the tax system varies depending on the type of company and the nature of its activities:
- Documents for company formation: certificate of registration, articles of association, and memorandum of association.
- Information about directors and shareholders: documents for all directors, shareholders, and founders. These can be both individuals and legal entities; residency is not required.
- Registers: A register of directors and shareholders must be maintained.
- Minutes of meetings: the minutes of the first shareholders’ meeting must be provided.
- Share certificates: Issued to shareholders as proof of ownership.
- Resolution appointing directors: A resolution appointing the company’s directors must be submitted, which must be apostilled.
Taxation in The Bahamas
For non-resident companies in the Bahamas, only the following apply:
- Annual fee (depending on the size of the authorized capital): up to $50,000 — $350, over $50,000 — $1,000.
- No income tax is levied.
- No capital gains tax is levied.
- No stamp duty is levied.
- No VAT is levied.
Taxation
| Corporate tax rate | 0% for offshore companies; 25% for domestic companies. |
| Personal income tax | 0% for non-residents; 15% for residents on personal income. |
| Withholding tax | 0% on dividends; 10% on royalties and interest paid to non-residents. |
| Stamp duty | Generally, the rate is 2.5% for real estate transactions; varies for specific transactions. |
| Annual license fee | From $100 to $1,000 depending on the type of company and share capital. |
Corporate structure
| Legal system | Based on English common law, providing a stable foundation for doing business. |
| Local registered office | Mandatory for all companies; a physical address in the Bahamas is required. |
| Local Registered Agent | Mandatory appointment of a local registered agent to ensure compliance and liaison with local authorities. |
Corporate governance
| Board of Directors | Mandatory for companies with at least 1 director; a director may be either a natural person or a legal entity. |
| Annual general meetings (AGM) | Mandatory for companies; must be held within 18 months of registration. |
| Disclosure requirements | Basic disclosure requirements: financial records must be kept but not made publicly available. |
Compliance requirements
| Annual reports | Companies are required to file annual reports, including updated information on directors and shareholders. |
| Financial reports | Mandatory audits are not required for most companies; records must be kept for at least 5 years. |
| Changes in directors | All changes must be reported to the Registrar within the specified time frame. |
| KYC rules | Companies must comply with Know Your Customer (KYC) rules and maintain appropriate documentation. |
FAQ about setting up a company in the Bahamas
How do I incorporate a company in the Bahamas?
The process involves gathering documents, paying fees, opening a bank account, and submitting an application to the Registrar of Companies.
How much does it cost to register a company in the Bahamas?
The cost depends on a number of factors, such as the type of activity, the availability of additional permits and licenses. According to official data, the registration fee is $330.
How long does it take to register a company in the Bahamas?
Registration with the government takes up to 7 days, but opening a bank account can take up to 4 weeks.
Can foreigners register a company in the Bahamas?
Yes, foreigners can register and conduct business in this jurisdiction. The island’s government attracts foreign investment by offering favorable tax conditions.
Are there restrictions on foreign ownership of Bahamian companies?
There are no restrictions for non-resident companies, but if the business involves banking or insurance activities, it can only be conducted outside the state.
What is the corporate tax rate in The Bahamas?
There is no corporate tax in The Bahamas, which makes this jurisdiction attractive for business.
Is a local address required to register a company in The Bahamas?
Yes, this is a mandatory requirement when registering a business. It is also possible to use the services of a licensed agent.
What annual reporting requirements apply to Bahamian companies?
There are no reporting requirements for international companies, but they are required to keep books and records at their office.
How to open a bank account for a Bahamian company?
The general package of documents for opening an account includes company documents, documents of authorized persons, and licenses and certificates may also be required.
Do I need a Bahamian director to incorporate a company?
The company may appoint a resident of any country as a director; there are no restrictions.
