Bahamas
International Business Company (Company limited by shares)
The Bahamas is a renowned offshore financial centre. Its political and economic stability and its proximity to the United States, makes the Bahamian international company a very popular offshore vehicle.
Companies incorporated under the International Business Companies act are companies limited by shares that benefit from confidentiality and privacy, no reporting requirements and a twenty-year exemption from all form of taxes.
International Business Companies are entitled to do business outside the Bahamas and may be restricted to conduct any transaction with residents in the Bahamas.
IBCs may not own interest in real property in the Bahamas, except the lease of properties for office use only.
Banking, insurance or re-insurance business is not permitted.
IBCs may not engage in the business of company management or providing registered facilities for Bahamian incorporated companies.
They are permitted to own shares in other Bahamian companies, maintain bank accounts in the jurisdiction and employ the services of local professionals.
IBCs that conduct business with Bahamians directly and owns Bahamian real estate will be subject to local tax laws, exchange controls and stamp duty.
IBCs conducting exclusively business abroad, benefits from absence of exchange, currency and capital controls.
The Bahamas is a common law jurisdiction with modern and simple incorporation laws and procedures.
The country has agreed to implement the OECD automatic exchange of information (AEoI) by 2018 and has signed over 12 tax information exchange treaties (TIEa).
A Bahamian International Business Company 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.
Legal
Country code – BS
Legal basis – Common law
Legal framework – International Business Companies Act 2000 and the International Business Companies (Amendment) Act 2004.
Company form – International Business Company (Company limited by shares)
Liability - The liability of the shareholders is limited up to the amount of the shares they hold.
Business restrictions – International Business Companies (IBCs) may not conduct any transaction with residents in the Bahamas. No ownership interest in real property in the Bahamas is permitted, property may be leased for office use only. Banking, insurance or re-insurance business is not permitted. Engaging in the business of company management or providing registered facilities for Bahamian incorporated companies is not permitted. IBCs are permitted to own shares in other Bahamian companies, maintain bank accounts in the jurisdiction and employ the services of local professionals.
Share capital – The usual authorized share capital is US$50,000. There is no statutory requirement for capital to be fully or partly paid on incorporation. Shares may be denominated in any currency, and may be with or without nominal or par value. Bearer shares are not allowed.
Shareholders – International Business Companies may be formed by one or more shareholders, who can be either natural or legal persons, residents or non-residents, without limitations. Details of shareholders are not publicly disclosed. Nominee shareholders are allowed.
Directors – At least one director is required, who may be a natural person or a legal entity. Directors’ details are available to the public. Nominee directors are permitted.
Secretary – The appointment of officers such as a secretary is optional, and may be an individual or a corporation, resident or non-resident.
Registered Address – An IBC must have a registered office in the Bahamas, provided by a licensed service provider.
General Meeting – Annual general meetings are not mandatory. However, if meetings are held, they can be anywhere in the world and may be by proxy or by telephone.
Electronic Signature – Permitted.
Re-domiciliation – A foreign entity can easily be re-domiciled as a Bahamas IBC, and vice versa.
Compliance – Bahamas’ IBCs must keep accounting records, which may be kept anywhere. There is no requirement to file financial statements and annual return to the Registrar, neither tax return to the Tax authorities. Bahamas IBCs are subject to an annual government fee.
- Shareholders not disclosed
- Directors not disclosed
- Corporate shareholders permitted
- Corporate directors permitted
- Local director required
- Secretary required
- Local secretary required
- Annual general meetings required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum shareholders
- 1 Minimum directors
- USD 1 Minimum issued capital
- - Minimum paid up capital
- USDAny Capital currency
- Anywhere Location of annual general meeting
- 2018 AEOI
Taxes
Corporate income tax - Bahamas does not levy corporate income tax. International Business Companies (IBCs) conducting business outside the country are exempted from taxes and stamp duties and may not have foreign exchange control restrictions.
There are no withholding taxes on dividends, interests and royalties paid to non-residents.
IBCs in Bahamas may trade with residents and 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% 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
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 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 cement, oil transportation, salt, rum, aragonite and pharmaceuticals.
Tax treaties
Procedures
Description
Bahamas International Business Company – US$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:
- Government incorporation and filling fee
- Bound set of Constitutional Documents
- Certified Copies of Constitutional Documents with Apostille for bank account opening
- 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 Options
- Bahamas Bank Account (Remotely) – US$500.00
- Offshore Bank Account (Remotely) – US$300.00
- Mauritius Bank Account (Remotely) – US$500.00
- Curaçao Bank Account (Remotely) – US$500.00
- Singapore Bank Account (In-person) – US$900.00
- Hong Kong Bank Account (In-person) – US$1,200.00
- Cayman Islands Bank Account (Remotely) – US$900.00
- Crypto-Friendly Bank Account (Remotely) – US$3,000.00
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we are happy to help you with introductions that can empower your business.
*Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia. Other bank account options may be available depending on business profile and turnover.
Annual Fees (2nd year) – US$2,900.00
Including:
- Government Fee (Authorized Capital US$50,000)
- Corporate Director Fee
- Registered Agent & Registered Office Fee
Additional Services
- Additional Corporate Director (1 year) – US$1,400.00
- Corporate Secretary (1 year) – US$500.00
- Nominee Shareholder (1 year) – US$1,400.00