Bahamas International Business Company (IBC) Formation

The Bahamas is an island country which lies in the Atlantic Ocean and consists of Islands, Cays and Islets. It has established itself as a world leading centre for offshore financial and company formation services. An IBC in the Bahamas has access to local markets since the amendment of legislation in 2000. This legislation also enables company directors to reshape corporate structures and change their articles of association.

  • An IBC in the Bahamas can conduct with Bahamians and own Real Estate in The Bahamas (Local Exchange Controls and Stamp duty applies if conducting business locally.)
  • No Corporate Tax
  • Location
  • No Double Taxation Treaties
  • English Common Law System
  • Privacy – Non-disclosure of shareholder information
  • Memorandum and Articles of Association may be amended
  • Financial reporting is no required
  • Offshore Savings and Investments
  • International Trading Companies
  • Use for the management of international business transactions
  • Asset Protection
  • Financial Activities
  • The IBC can hold financial or commercial titles
  • The IBC can own property (real estate) and movable or immovable assets

Bahamian IBC may conduct business with the Bahamas, including owning real estate (Local Exchange controls and stamp duty apply in these cases.

The company may not sell its own share or solicit funds from the public. Unless special permission has been sought and granted, by the government of the Bahamas, for the appropriate license the IBC may also not conduct business in banking, insurance, trusteeship, collected investment scheme, trust management, collective investment schemes, as well as offering investment advice or such activities which would suggest association with the banking or insurance.

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A few of the requirements are the Name of the company to be incorporated, a physical address, certified copies of valid passports or national ID cards, such as those issued in the European Union. These need to be certified by either a Notary Public, Bank or by the issuing country’s Embassy. A Character reference may also be required.

A local registered office also  needs to be maintained.

Overview
Company TypeIBC
Country LawCommon Law
Company Law

International Business Companies Act 2000

International Business Companies (Amendment) Act 2004

International Business Companies (Amendment) Act 2011

Registered Office RequiredYes
Local Registered Agent RequiredYes
Shelf Companies PermittedYes
Average Time To Form Company1 to 2 Business Working Days
Government Fees
Minimum Government Formation Charge$350 USD
Recurring Minimum Annual Company License Fee$350 - $1000 USD - Dependant on Share Capital
Annual Return Filing FeeNot Applicable
Corporate Tax
Corporation TaxNo
Access to Double Taxation TreatiesNone
Directors
Minimum Required Directors1
Local Director RequiredNo
Records PublicYes
Board Meeting LocationAnywhere in the World
Corporate Directors PermittedYes
Privacy - Publicly Available RecordsYes

There is a minimum requirement of one Director of whom may be an individual or corporate entity from any nationality and need not be a resident in the Bahamas.

Company Secretary
Secretary RequiredNo
Local or Qualified PositionNo
Share Capital
Standard CurrencyBahamian Dollar
Permitted Share CurrencyAny
Minimum Paid Up Shares$1 USD
Usual Authorised$50,000 USD
Bearer Shares PermittedNo
No Par Value Shares PermittedYes
Shareholders
Minimum Number Of Shareholders1 Shareholder - 2 Subscribers but transferable afterwards
Corporate Shareholdes PermittedYes
Meeting LocationsCan be held anywhere in the world
Privacy - Publicly Available RecordsNo

There must be two subscribers at the time of incorporation, after this shares may then be transferred to a single person or entity.

Company Accounts
Requirements To PrepareYes
Audit RequiredNo
Keep Financial RecordsYes
Requirement To File AccountsNo
Requirement to File Annual ReturnNo
Accounts Publicly AccessibleNo

All IBC’s must keep reliable account records for all sums of money received and spent and record how this has taken place, including all sales, purchases and any other transactions. A record of all assets and liabilities of the company. These records need to maintained for a minimum of five years from the date of the transactions.

All documentation, invoices, contracts and receipts also need to retained for this period.

These documents may be maintained in the Bahamas or in the case where they are kept outside of the Bahamas, it has to be confirmed in writing by the IBC to the Registered Agent in the Bahamas, the physical address where the records are kept and if at any time the location changes, they need to be notified immediately.

An IBC in the Bahamas is exempt from all taxes, unless business is conducted with any person or entity in the Bahamas, then the relevant duties shall apply.

There is no sales estate tax, gift or inheritance taxes in the Bahamas.

Bahamas Facts
Location

Located in the Western North Atlantic Ocean,

north of the Antilles, and east and southeast of Florida.

SizeApproximate area of 13,878 sq km - of which is 28% Water
PopulationApproximately 321,834
Languages SpokenMain and Official Language is English
CurrencyBahamian dollar (BSD), however the US Dollar use is widespread
PoliticsUnitary Parliamentary - Constitutional Monarchy
Economy

Main Industries:

Tourism

Financial Services

Agriculture

Transport

Air

Road - Driving on the Left

Boat

Time Zone

Daylight Saving Time is used

EST (UTC−5)

EDT (UTC−4)

International Dialling Code+1-242
Internet TLD.bs

Contact us today to enquire about the Cost of Formation or if you have further questions regarding the application process.

Bahamas International Business Company (IBC) Formation Enquiry

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