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Bahamas

International Business Company (Company limited by shares)

The Bahamas is one of the industry veterans when it comes to offshore financial services. Since the 30s and 40s, the jurisdiction has been attracting foreign wealth due to its absence of taxation and its confidentiality policies. Although it lost popularity after its independence from Great Britain back in 1973, in favor of Cayman, BVI or Bermuda, it is still one of the go-to jurisdictions in terms of offshore corporate, trust and banking services.

Last December 2018, the Bahamas implemented several legislative changes to comply with requirements set by the EU and the OECD, by enacting the Removal of Preferential Exemptions Act; Commercial Entities (Substance Requirements) Act; the Register of Beneficial Ownership Act; and the Multinational Entities Financial Reporting Act

The Removal of Preferential Exemptions Act abolishes ring-fencing features provided by the International Business Companies Act; the Exempted Limited Partnership Act; the Investment Condominium Act, 2014; and the Executive Entities Act, 2011 - which provided companies incorporated by non-residents to enjoy certain exemptions if they were operated completely outside of the Bahamas.

Because the Bahamas doesn’t levy corporate taxes the main impact for IBCs or Limited Partnerships doing business outside of the Bahamas is that now they will be required to obtain a business license and pay a certain annual fee, as well as stamp duty on certain instruments. Limited duration companies under the International Business Act have been abolished.

Companies incorporated on or before December 31, 2018, are grandfathered for three years, until December 31, 2021.

Furthermore, international banking, insurance, and securities/capital markets sectors will be able to offer services to residents in the Bahamas and in local currency once certain regulatory approvals are in place. On the other hand, local commercial banks will be able to provide services to international clients.

With regard to the Commercial Entities (Substance Requirements) Act - financial and insurance services companies, shipping businesses, IP businesses, headquarters businesses, holdings and companies providing services to or trading with affiliates are required to meet economic substance requirements.

The Register of Beneficial Ownership Act establishes obligations for registered agents to identify and verify identities of beneficial owners of companies incorporated in the Bahamas and maintain databases to hold such beneficial ownership. Information maintained in databases must remain confidential and only accessible by a ‘designated person’ and the registered agent to whom the database belongs to.

The Multinational Entities Financial Reporting Act, 2018, subjects Bahamas companies that are an ultimate parent entity (UPE) of a multinational entities group (MNE) to file a yearly country-by-country report (CbCR).

MNEs are groups that have two or more entities incorporated in different jurisdictions and that have a consolidated group revenue of over USD 850 mil.

A CbCR is an annual return that includes the key elements of the financial statements of a given multinational group by jurisdictions. It provides information to tax authorities about revenue, tax paid and accrued, employment, capital, retained earnings, tangible assets, and business activities, among others.

Bahamian International Business Companies are commonly used as holding companies, to hold bank accounts, financial and commercial titles, international trading, own movable and immovable properties, asset protection and estate and inheritance security, among others.

Taxes

Corporate income tax - Bahamas does not levy corporate income tax. 

There are no withholding taxes on dividends, interests, and royalties paid to non-residents.

IBCs in the Bahamas may trade with residents and they may own real estate within the territory, but exchange controls and stamp duties on authorized capital will apply in these cases.

Other taxes - There are no personal direct taxes such as personal income tax or net worth tax.

The Bahamas levy a real property tax up to 2% for land and building owners, although several exemptions may apply. There is also a stamp duty on the transfer of certain assets and financial instruments.

Companies conducting business in the Bahamas may be subject to several indirect taxes such as import duties, hotel guest tax, passenger tax, casino tax, among others.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 0% Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0 Losses carryback (years)
  • 0 Losses carryforward (years)
  • 3.9% Social Security Employee
  • 5.9% Social Security Employer
  • 0% Personal Income Tax Rate
  • 7.5% VAT Rate
  • 31 Tax Treaties

Country details

Bahamas
BSD
Nassau
North America
e n - B S
301790

The Commonwealth of the Bahamas consists of more than seven hundred islands (of which 24 are inhabited and more than 700 uninhabited), cays and islets in the Atlantic Ocean, is located to the north of Cuba and Dominican Republic, northwest of Turks and Caicos Islands, to the southeast of the state Florida and east of the Florida Keys. Geographically the Bahamas form, along with the Turks and Caicos Islands, the Lucayan Archipelago, also denominated by extension Bahamas.

It has a population of almost 400,000 inhabitants. Its capital and the most populated city is Nassau, located on the island of New Providence. Its official language is English, although the Bahamian Creole is widely spoken. Its official currency is the Bahamian Dollar, pegged to the US Dollar at an exchange rate of 1:1.

The Bahamas is a hereditary constitutional monarchy belonging to the Commonwealth of Nations. The British monarch, as head of state, appoints his/her representative, the Governor General. Executive power is exercised by the Cabinet, headed by the prime minister, an institution that appears in 1955 with the first parliamentary elections in the archipelago.

Legislative power rests on a bicameral parliamentary system. It is composed of sixteen members of the Senate (appointed by the Governor General) and forty members of the House of Representatives, elected directly by the population.

The Bahamas has an economy based on imports, tourism, and banking. Tourism alone accounts for more than 60 percent of GDP and employs directly or indirectly half the workforce of the archipelago.

Financial services are the second most important sector of the economy: about 15% of GDP.

Industry and agriculture contribute about one-tenth of GDP. Its major industries apart tourism and banking services are ceme

Tax treaties

Country Type Date Signed
India TIEA 2011-02-11
Czech Republic TIEA 2014-03-06
Australia TIEA 2010-03-30
China TIEA 2009-12-01
Canada TIEA 2010-06-17
Monaco TIEA 2009-09-18
Denmark TIEA 2010-03-10
Finland TIEA 2010-03-10
Faroe Islands TIEA 2010-03-10
Germany TIEA 2010-04-09
Greenland TIEA 2010-03-10
Norway TIEA 2010-03-10
Guernsey TIEA 2011-08-08
United Kingdom TIEA 2009-10-29
Argentina TIEA 2009-12-03
Belgium TIEA 2009-12-07
Japan TIEA 2011-01-27
Spain TIEA 2010-03-11
Aruba TIEA 2011-08-08
Iceland TIEA 2010-03-10
San Marino TIEA 2009-09-24
South Africa TIEA 2011-09-14
Poland TIEA 2013-06-28
New Zealand TIEA 2009-11-18
Korea, Republic of TIEA 2011-08-04
Mexico TIEA 2010-02-23
United States TIEA 2002-01-25
Malta TIEA 2012-01-18
Netherlands TIEA 2009-12-04
Sweden TIEA 2010-03-10
France TIEA 2009-12-07

Tax treaties Map

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Services

We can help you incorporate a International Business Company (Company limited by shares) in Bahamas for $4,300.



Description


Bahamas International Business Company Formation – USD 4,300.00 (All included)


We pride ourselves in providing the best possible professional service which includes our honest hassle-free “No Hidden Fee” policy. Your incorporation package includes:



  • All Applicable Registration and Government Fees

  • Certificate of Incorporation

  • Memorandum & Articles of Association

  • Appointment of Company Director(s)

  • Director(s) Acceptance Letter

  • First Board Resolution

  • Register of Members

  • Register of Directors

  • Share Certificate(s)

  • Registered Office & Registered Agent Service including all fees for the calendar year

  • Corporate Documents’ Courier Delivery


Time to form: 2 weeks.


All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.


Bank Account Opening Support Services (Optional)


Bank Account Options*:



  • Bahamas Bank Account (Remotely) – USD 500.00

  • Offshore Bank Account** (Remotely) – USD 300.00

  • Mauritius Bank Account (Remotely) – USD 600.00

  • Labuan (Malaysia) Bank Account (Remotely) – USD 500.00

  • Curaçao Bank Account (Remotely) – USD 500.00

  • Singapore Bank Account (In-person) – USD 900.00

  • Hong Kong Bank Account (In-person) – USD 1,200.00

  • Cayman Islands Bank Account (Remotely) – USD 900.00

  • Cyprus Bank Account (In-person) – USD 1,200.00

  • Armenia Bank Account (Remotely) – USD 1,200.00

  • New York (US) Bank Account (Remotely/In-person) – USD 2,000.00

  • Cook Islands Bank Account (Remotely) – USD 600.00


For Private Wealth Structures, we have further options available in large financial centers. Please contact us for more information.


*This accounts’ schedule of fees are for trading, service and holding companies whose activities are not regulated and are considered low-risk by financial industry standards. If you conduct regulated activities such as financial services or gaming, or you operate in a high-risk industry such as cryptocurrencies, precious metals, adult, dating. Please also contact us for more information relating to these industries.


**Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia.  Other bank account options may be available depending on business profile and turnover.


Our Bank Account Opening Support Service includes:



  • Introduction to the Bank Manager

  • Bank Account Opening Process Management

  • Assistance and advice in filling out Business Questionnaires, KYC Forms and Bank Account Application Forms.

  • Certified Copies of Constitutional Documents with Apostille

  • Corporate Seal


Our banking service is not just a mere introduction to the bank. We assist you in filling out the business plan forms appropriately and help you understand and provide business details, commercial information and purpose/use of the bank account that a given bank wants to know in order to approve your account application.


Banks want certainty and clarity on how the account will be used. Everything must be watertight. We will work with you to make sure there is minimal ‘back and forth’ and a smooth account opening process


Annual Fees (2nd year) – USD 2,900.00


Including:



  • Government Fee (Authorized Capital USD 50,000)

  • Corporate Director Fee

  • Registered Agent & Registered Office Fee


Additional Services



  • Additional Corporate Director (1 year) – USD 1,400.00

  • Corporate Secretary (1 year) – USD 500.00

  • Nominee Shareholder (1 year) – USD 1,400.00






Click here to incorporate your Bahamas IBC.

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Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

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