Register company in Bahamas

Fionza Consultants offers comprehensive support for registering your company in the Bahamas. Our service package encompasses Bahamas company registration, corporate bank account opening, and managing accounting and tax obligations. Choose Fionza Consultants as your one-stop solution to launch your business legally in the Bahamas.

Bahamas

Company Registration – 1 Week
Local Director? – No
Bank Account Opening – 4 Weeks
Travel Required – No

Register company in Bahamas: Introduction

Experience a hassle-free Bahamas company registration with the expert assistance of Fionza Consultants. Entrust us with the process, freeing up your time and resources for more critical tasks. While the Bahamas is renowned as a picturesque vacation destination, it also offers an enticing zero tax regime, attracting numerous corporations to establish their International Business Companies (IBCs) under the International Business Companies Act 2000 and the Amended 2004 Act. Our streamlined approach ensures a seamless experience, whether you’re setting up an onshore or offshore company. Our dedicated team of experts is committed to making your Bahamas company operationally ready within the specified timeframe. Our comprehensive service package covers:

Company registration with the Registrar General’s Department
Local company secretary and registered address
Corporate bank account opening
Financial license applications
Annual accounting and tax services.

Choose Fionza Consultants for a smooth and efficient journey to register your company in the Bahamas.

What is a Tax Haven and is The Bahamas a Tax Haven?

While commonly associated with low or zero tax rates and often linked to illicit activities like tax evasion, tax havens typically embody financial secrecy, political and economic stability, and foreign-friendly business environments. The Bahamas possesses these characteristics, yet it stands apart from being labeled a tax haven due to its commitment to high financial reporting standards, as mandated by the Financial Transactions Reporting Act 2018.

Despite meeting the criteria set by the Financial Action Task Force and the Organization for Economic Co-operation and Development (OECD) in combating money laundering and terrorist funding, The Bahamas continues to grapple with the misconception of being a tax haven. It is unfairly categorized as such, even though it has demonstrated compliance with strict and transparent financial reporting standards. Notably, as of December 2020, The Bahamas was successfully removed from the OECD’s grey list, affirming its dedication to international standards.

What are the new economic substance requirements and how do they affect businesses looking to register company in Bahamas?

In its commitment to tax reform, The Bahamas enacted the Commercial Entities (Substance Requirements) Act in December 2018. This legislation establishes standards to discern the fairness of tax measures imposed on organizations and prevents the facilitation or encouragement of corporate structures that attract profits without reflecting genuine economic activity in The Bahamas. This proactive measure has contributed to fostering a more legitimate business environment in the country.

Who is obligated to comply with the new requirements for registering a company in the Bahamas? Under this act, all legal entities engaged in “relevant activities” must adhere to economic substance requirements. These activities encompass banking, insurance, fund management, finance and leasing, headquarters, shipping, distribution and service centers, as well as intellectual property businesses. The law extends to holding companies involved in such activities or having subsidiaries engaged in them.

To demonstrate substantial economic presence, companies must conduct core income-generating activities within The Bahamas without outsourcing them. The management of the business must also take place within the country.

Key requirements include:

Annual Operating Expenditure: Maintain an adequate amount of annual operating expenditure.
Qualified Full-Time Employees: Maintain an adequate level of qualified full-time employees.
Physical Offices: Maintain an adequate number of physical offices.

To demonstrate the required level of management and control in The Bahamas, companies must:

Board Meetings: Conduct an adequate number of board meetings in The Bahamas.
Quorum: Ensure a quorum of the board is physically present in The Bahamas during meetings.
Record Keeping: Record strategic decisions made at board meetings.
Documentation: Keep all records and minutes in The Bahamas.
Board Expertise: Ensure the board possesses the necessary knowledge and expertise.

Failure to comply may result in an administrative penalty of $150,000, and persistent non-compliance could lead to removal from the Bahamas registrar of companies. Reporting on compliance is required within nine months of the fiscal year end. Even if not obligated, entities are subject to annual reporting obligations.

Fionza Consultants, from the outset, will guide you on the relevant economic substance regulations based on your business activity. If needed, our team will assist with local offices, recruitment, and provide annual reminders to ensure timely reporting to authorities. Choose Fionza Consultants for expert guidance in navigating the regulatory landscape for registering your company in the Bahamas.

How long to register company in Bahamas and open a corporate bank account?

Experience a seamless procedure to register your company in the Bahamas with the expert assistance of Fionza Consultants.

Upon receiving the necessary due diligence documents from directors and shareholders, Fionza Consultants initiates a name search with the Registrar General’s Department, reserving your preferred name. Your application is then efficiently filed through an established financial or corporate service provider recommended by Fionza Consultants.

In just one week, expect to receive essential documents for your new company, including the Company Registration Certificate and Memorandum and Articles of Incorporation. Following successful company formation, Fionza Consultants facilitates the opening of a corporate bank account with your chosen bank, typically completed within four weeks.

With Fionza Consultants, you can commence operations with your Bahamian company in just five weeks from the engagement date. Our team of Chartered Accountants is ready to provide a comprehensive suite of services to ensure ongoing compliance with all regulations. These services encompass monthly bookkeeping, preparation of financial statements, and annual tax return filings.

Choose Fionza Consultants for a swift and reliable journey to register and establish your company in the Bahamas, backed by a full range of professional services to support your business success.

Can you register company in Bahamas as a foreigner?

Foreign entrepreneurs can easily establish a business in The Bahamas, thanks to the International Business Companies Act, which not only permits but encourages 100% foreign ownership. This business structure entails minimal requirements, with no residency mandate for directors, streamlining the process for foreigners looking to register a company in the Bahamas.

However, foreign individuals seeking to conduct business in The Bahamas must gain approval from the Bahamas Investment Authority (BIA), overseen by the Ministry of Finance. This regulatory body governs foreign direct investment within the jurisdiction.

To secure approval from the Bahamas Investment Authority, a detailed Project Proposal must be submitted following the official guidelines outlined by the BIA. The Proposal undergoes review by the National Economic Council and relevant Ministries if applicable.

An initial investment capital of at least $500,000 is required, directed towards a field or industry not restricted solely to local business activities. Restricted industries include real estate, local media, essential services, local food and beverage industries, retail, security services, construction, seafood, and local transport.

Foreign investors intending to establish a company and transact in the Bahamas using the local currency must obtain “Resident” status from the Exchange Control Department of the Central Bank of The Bahamas. This process involves submitting an application letter detailing the company and intended activities for review. Fionza Consultants offers comprehensive assistance throughout the entire process.

Choose Fionza Consultants for expert guidance and seamless support in navigating the regulatory landscape to establish and conduct business in the Bahamas as a foreign investor.

How to register company in Bahamas?

Discover a seamless Bahamas company registration process with Fionza Consultants. Our comprehensive Bahamas company formation package is designed to guide you through each step of establishing your new corporate home. To ensure a successful company formation, follow this guide:

Step 1: Choosing a Suitable Corporate Entity Rely on our dedicated consultants to recommend the most suitable corporate entity based on your business goals and activities. We’ll guide you on paid-up share capital, corporate structure, legislations, and the need for any required licenses.

Step 2: Reservation of Company Name Fionza Consultants will efficiently reserve your preferred company name with the Registrar General’s Department.

Step 3: Preparation of Supporting Documents Provide the required KYC documents, including director names and identification proof. Fionza Consultants will draft and notarize the company’s Memorandum and Articles of Association, and other necessary incorporation documents based on your business activity and corporate structure.

Step 4: Filing to Register Company in Bahamas We’ll ensure compliance by providing a registered office and agent. Once approved by the Registry, Fionza Consultants will courier the Certificate of Incorporation and relevant documents to your preferred address.

Step 5: Corporate Bank Account Opening Benefit from our assistance in opening a corporate bank account, with partnerships established with reputable banks in The Bahamas. We can also arrange offshore bank accounts in jurisdictions like Hong Kong, the United States, or New Zealand. Corporate bank account opening typically takes four weeks.

Step 6: Business Licenses Ensure smooth business operations by processing the relevant application with the Department of Inland Revenue for a business license. We’ll handle the application process, renewals, and annual fees to keep your business compliant.

Step 7: Financial Reporting and Taxation Obligations Count on Fionza Consultants for ongoing accounting and tax services to meet regulatory obligations. We’ll prepare financial statements, corporate tax returns, and manage bookkeeping. IBCs in The Bahamas are not subject to income, capital gains, or estate tax, but value-added tax may apply to certain goods and services.

Under new legislation, your company may need to file an annual country-by-country report with the Ministry of Finance. We’ll guide you through any obligations and ensure compliance. Additionally, registration with the National Insurance Board is mandatory, and our team will assist with monthly national insurance contributions.

Choose Fionza Consultants for a smooth, compliant, and efficient Bahamas company registration process, supported by a dedicated team of consultants.

Types of business entities in The Bahamas

Unlock a world of business opportunities in The Bahamas with various business entities, including the widely favored International Business Company (IBC) structure. At Fionza Consultants, we guide you through the optimal choice based on your business goals, considering factors like business activity, tax obligations, and the nationalities of directors and shareholders.

Domestic Company: The simplest form under the 1992 Companies Act, a Domestic Company requires at least two individuals to sign a Memorandum of Association. Unlike IBCs, Domestic Companies disclose the names and addresses of directors and officers publicly, holding annual general meetings.

Private Companies Limited by Shares:
- Allows the issuance of shares.
- Members and managers have limited personal obligations, separate from the company’s debts.
- Registration involves details like the form of business entity, authorized capital, and share information in the Memorandum of Association.
Private Companies Limited by Guarantee:
- Provides security for members, separating personal liabilities from the company.
- Members may be liable for unpaid amounts, limited to the agreed-upon total.
- Registration includes details on contributions, share classes, and rights in the Memorandum of Association.
Private Company Limited by Shares and by Guarantee:
- A hybrid combining features of the previous entities.
- Registration involves details like authorized capital, member contributions, and share information in the Memorandum of Association.
Public Companies:
- Shares can be freely traded on the stock exchange.
- The primary distinction from private companies lies in share trading.

International Business Company (IBC): The preferred choice for foreign investors, IBCs offer simplicity and tax exemption. No Annual General Meeting is required, and no annual returns or statements need filing. While maintaining officer and director filings, IBCs allow for efficient offshore business operations.

Exempted Limited Partnership:

Consists of general and limited partners.
General partners may be personally responsible for business liabilities, while limited partners are not personally liable but cannot participate in business activities.
Requires a registered office in The Bahamas and is restricted from local business unless essential for offshore growth.

At Fionza Consultants, we streamline the Bahamas company registration process, providing expert guidance for each business entity. Choose us for a seamless, compliant, and efficient journey into the Bahamas business landscape.

Accounting and tax obligations

Entrust your Bahamian accounting and tax responsibilities to Fionza Consultants for a seamless and worry-free experience. Our dedicated team of consultants will handle your firm’s financial statements, corporate tax returns, and audits promptly, eliminating the need for your physical presence.

Outsourcing with Fionza Consultants not only assures timely reporting and filings but also allows you to reduce overhead costs. Our accounting team, before the engagement begins, keeps you informed about all required deadlines and audit requirements. We proactively prepare all necessary filings well in advance, ensuring compliance with stipulated deadlines without any hassle for you.

Annual Reporting Requirements: Under The Multinational Entities Financial Reporting Act, companies in The Bahamas with a revenue of $850 million and above must file an annual report with the Minister of Finance. Other companies demonstrating economic substance are required to file a compliance report within nine months of their fiscal year end.

Taxation Requirements: In general, Bahamas-incorporated companies enjoy exemptions from income tax, incorporation tax, capital gains tax, or wealth tax. However, it’s essential to note that value-added tax is still applicable.

By choosing Fionza Consultants, you not only gain a reliable partner for your accounting and tax needs but also ensure compliance with regulations and timely submissions. Experience the benefits of reducing costs and increasing efficiency by outsourcing your accounting and tax obligations to Fionza Consultants.

Is The Bahamas a good place to start business?

Explore business opportunities in The Bahamas, a country with a focus on tourism, banking, and e-commerce, offering a favorable environment for foreign investors. Fionza Consultants is your guide, addressing queries throughout the Bahamas company incorporation process. We employ a PESTLE framework to comprehensively analyze the feasibility of doing business in The Bahamas.

Political: Despite challenges, The Bahamas is making political changes, addressing corruption through new regulations. Transparency International’s Corruption Perception Index 2020 ranks it 30th out of 180 countries. Stay informed about evolving political landscapes with Fionza Consultants.

Economic: Boasting a strong economy driven by tourism and agriculture, The Bahamas ranks 70th in The Heritage Foundation’s 2021 Index of Economic Freedom. The aftermath of Hurricane Dorian caused a GDP drop, but the government introduced various economic laws to encourage investment.

Social: English is the official language, eliminating language barriers. The Bahamas has a highly educated population, with over 95% adult literacy. While the majority enjoys a strong talent pool, challenges faced by Haitians in the country should be acknowledged.

Technological: The Bahamas is moving towards becoming a smart nation, with initiatives to attract Information and Communications Technology companies. The BH1B work visa encourages individuals to set up technology companies, fostering technological innovation.

Legal: The Bahamas has an independent and fair judicial system. Recent legislations like the Removal of Preferential Exemptions Act and the Multinational Entities Financial Reporting Act demonstrate a commitment to transparency. Privacy laws protect corporate information.

Environmental: The Bahamian government promotes sustainable agriculture and rural development, limiting pesticide use. The country’s commitment to Sustainable Development Goals is evident in initiatives reforming energy use. Consider the environmental impact, especially in a tourism-driven economy.

Choose Fionza Consultants for a smooth incorporation process in The Bahamas, where political stability, economic incentives, a skilled workforce, and technological advancements create a conducive environment for businesses.

FAQs

What is the best business in The Bahamas?

The Bahamian economy is largely reliant on tourism and banking and financial services. These two sectors also make up the areas of businesses which the government aims to attract more foreign investment in, alongside other industries such as high-tech services, pharmaceutical manufacture, real estate and offshore medical centres.

How much does it cost to start a business in The Bahamas?

While there are no paid-up capital requirements when starting a business in The Bahamas, Tetra Consultants will recommend setting aside at least US$5,000 as your paid-up capital to fund your overhead expenditures as well as initial deposit for corporate bank account opening.

As for Tetra Consultants’ engagement fees, this depends on the exact services required from Tetra Consultants. Our fees are inclusive of government fees and all fees will be clearly stated in our engagement letter prior to the start of the engagement. Tetra Consultants believes in transparency with our valued clients and there are no hidden fees.

Why do companies register in The Bahamas?

Apart from having an attractive tax policy, it also offers high levels of privacy and ease of incorporation. This allows even foreigners to set up companies easily for trading, tax management and investment holding purposes.

What is the income tax rate in The Bahamas?

The Bahamas does not have income tax.

What does it mean for The Bahamas to be a commonwealth nation?

As an ex-British Colony, The Bahamas gained independence in 1973 as its own sovereign country. However, it still maintains close economic and political ties with both Britain as well as the other commonwealth nations.

What language is spoken in The Bahamas?

The official language is English, with most of the population being fluent in it.

What is the currency of The Bahamas?

The currency is the Bahamian dollar which is pegged at a 1 to 1 rate with the US$. However, US$ is also widely accepted.

What are alternative jurisdictions for offshore company formation besides Bahamas?

If you are looking for jurisdictions with similar low or zero corporate income tax rates for offshore companies, you can consider setting up in the Cayman Islands, Marshall Islands, Cook Islands, Costa Rica and the Turks and Caicos Islands.

However, as several of the above jurisdictions may have a negative reputation as a haven for offshore tax evasion, you may wish to consider more reputable jurisdictions with strong corporate regulations to set up your offshore company instead, such as Hong Kong, New Zealand, the United States and the Czech Republic. Tetra Consultants can assist you to complete the incorporation process expeditiously.

What is an IBC in the Bahamas?

It is the most popular type of business entity chosen by foreigners. It has limited liability, allows foreigners to conduct business offshore, and has minimal requirements for both set up and maintenance, making it an easy and advantageous option.

How do I start an LLC in the Bahamas?

You will first need to decide a name for your business, which must be unique and end with either the words “Limited Liability Company” or “LLC”. Tetra Consultants will assist you to reserve the name.

You will then have to submit with the required KYC documents, including the names of directors and identification proof. Upon receiving all the necessary documents, Tetra Consultants will proceed to draft and notarize the company’s Memorandum and Articles of Association. Tetra Consultants will also assist you to draft articles of incorporation, a business plan and other incorporation documents.

You will not have to fulfill any mandatory criteria for minimum paid up capital for an LLC. However, you will need a listed office and agent in the Bahamas. Tetra Consultants will provide you with the necessary services to ensure that you are able to meet these requirements.

Tetra Consultants will then file for incorporation with the Bahamas Registrar General’s Department. After receiving approval from the Registry, Tetra Consultants will courier the Certificate of Incorporation, Memorandum and Articles of Association and other corporate documents to your preferred address.

After incorporation, Tetra Consultants will then open a corporate account with a reputable bank of your choice, as well as assisting you to apply for relevant licenses and fulfill the mandatory accounting and tax obligations.
Contact us to find out more about how to set up an LLC in the Bahamas and our team of experienced consultants will revert within the next 24 hours.

Register company in Bahamas