Сompany registration in the Bahamas: Legal aspects and advice

Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.

To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.

If you plan to start a business in the Caribbean region, the Bahamas is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in the Bahamas, and is ready to share its results and help you choose the right jurisdiction. 

What are the main advantages of incorporating a company (business) in the Bahamas?

1. Favorable tax regime

Companies in the Bahamas are exempt from corporate tax. Additionally, there is no personal income tax on the islands. This creates ideal conditions for international businesses, allowing entrepreneurs to focus on growth without unnecessary tax burdens. Such a tax system is especially advantageous for IT companies, financial services, and other industries.

2. Reliable privacy protection

The Bahamas offers a high level of protection for personal data and commercial information. Company owners can be assured that their personal information will not be accessible to third parties. This confidentiality enhances trust in the jurisdiction among international investors and entrepreneurs.

3. Efficient incorporation process

Due to well-established procedures, company registration in the Bahamas is quick and straightforward. In most cases, a company can be registered within two weeks, making it an excellent choice for businesses that need to start operations promptly.

4. Absence of currency control

The Bahamas imposes no restrictions on international financial transactions, allowing businesses to operate without unnecessary hurdles. This is particularly important for companies operating on a global scale that require freedom in managing financial flows. The flexibility in currency operations makes the Bahamas attractive to trading and financial companies.

5. Appeal for IT Businesses and Startups

The Bahamas is an ideal location for companies engaged in software development, online platforms, or e-commerce. The absence of income tax and the speed of company registration enable IT businesses to save time and resources. This makes the Bahamas especially popular among startups and innovative projects.

How to register a company in the Bahamas and what are the main requirements for such registration?

Step 1. Initial setup

• Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
• Preparation and filing of the package of documents.

Step 2. Company registration

• Reserving of the company name;
• Preparation of registration documents;
• Submitting documents to the Bahamas Corporate Registry of the Registrar General’s Department;
• Opening a bank account;
• Obtaining business licenses (if applicable).

Requirements for registering a company in the Bahamas on the example of an International Business Company (IBC):

• Shareholders: at least one shareholder (an individual or a legal entity; there are no residency requirements).
• Director: at least one director (an individual or a legal entity; there are no residency requirements).
• Minimum Share Capital: no paid up capital requirement. The standard authorized share capital is typically set at $50,000.
• Legal Address: a legal registered office address within the Bahamas is required for company registration.
• Registered Agent: it is necessary to appoint a local registered agent.
• Liability: the liability of its shareholders is limited to the amount of capital they have invested in the company through their shares.
• Accounting: no filing of accounts or reporting requirements, however, an IBC is required to keep financial records.

What do you have to know about taxes when registering a company in the Bahamas?

Corporate income tax (CIT):

There is no CIT in the Bahamas.

Personal income tax (PIT):

There is no PIT in the Bahamas.

Value-added tax (VAT):

• The standard VAT rate is 10%.
• Goods exported to customers abroad are classified as exempt from VAT.

For readers 

Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in the Bahamas. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions. 

By choosing our company formation service in the Bahamas, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in the Bahamas and pave the way for your business success!

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The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.