Everything You Need To Know About Opening An Offshore Company In The Bahamas

The Bahamas may be known for its relaxing coral beaches and fancy resorts, but it’s also known for its excellent business-enabling environment.

The Bahamas became an independent member of the British Commonwealth in 1973. It follows the legal system of the UK and is also governed by British common law.

In addition to its highly-developed infrastructure, Bahamas is also the house of 300 banking institutions. It only entertains agreements and treaties regarding drug-trafficking and doesn’t exchange information with other countries for tax leniency.

Setting up an offshore company in the Bahamas will offer multiple benefits, but for that, you need to comply with the International Business Companies Act 2000.

 

The International Business Company (IBC)

In order to facilitate easy incorporation and business activities, IBC was revised in 2000. Under the new compliance, an offshore company must have the following characteristics.

 

Taxation

No taxes are applied on IBCs, because the Bahamas is a tax-free jurisdiction. This means companies operating within the Bahamas aren’t directly taxed on income, capital gain, corporation or gifts.

 

Shareholders

You can incorporate business after issuing a minimum of one share. As bearer shares have been abolished in 2001, you need to issue registered shares only.

All the registered shares need to be filed in the register of a shareholder, which needs to be kept at your registered office within the Bahamas. This register is only accessible to the company and is restricted to public viewing.

 

Requirement of Directors

Your offshore company can be operational with a minimum of 1 director and other corporate directors can be hired.

All company’s director must be listed in the register of a director, which must be provided to the Registrar of Companies in a timely manner. This register is open to public scrutiny; be careful of inspection.

 

Financial Reports

An annual business license fees needs to be paid; non-compliance subjects you to a penalty fee of 10 percent of your license fee.

Although, no annual report needs to be published, maintain accurate financial accounts to justify your business operations. Moreover, the location of financial records must be notified to the authorities.

 

Name restriction

In order to operate in the Bahamas your business name must have one of the following terms:

• Limited
• Corporation
• GmbH
• Incorporated
• Societe Anonyme
• Sociedad Anonima

On the other hand, following business activities or terminology can’t be used, when you’re operating in the Bahamas,

• Assurance
• Bank
• Building Society
• Chamber of Commerce
• Chartered
• Cooperative
• Imperial
• Insurance
• Municipal
• Royal

 

Local requirements

The only law that a company needs to follow in the Bahamas is to maintain a physical presence within the region. By law, the offshore company needs to have a registered office address and a resident agent.

Sick of the US tax code? Ready to try your luck in the Bahamas?

To learn how Mikkel Thorup can assist you to incorporate your business in The Bahamas all you have to do is CLICK HERE right now.

 

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