Bahamas

A state located in the Caribbean Sea, to the south-east of the Florida peninsula and to the north of Cuba. The archipelago consists of about 700 islands (of which only 30 are inhabited) and 2,000 coral reefs.

Capital

Nassau

Official language

English

Currency

Bahamian Dollar (BSD)

Political Structure and government

The Head of State is Queen of Great Britain represented by Governor-General. Legislative power is exercised by the Parliament consisting of the Senate and the House of Assembly. The executive power is vested in the Cabinet of Ministers headed by the Prime Minister.

Economy

Bahamas is a steadily developing country that receives income mainly from tourism and banking services. Tourism accounts for more than 60% of the islands' GDP. About half of the employed population is directly or indirectly engaged with tourism.

Legal system

Based on English common law

Corporate law

  • International Business Companies Act, 2000, amended in 2004
  • Trustee Act, 1989
  • Foundations Act, 2004

Types of companies

  • International Business Company
  • Domestic Limited Company
  • Company Limited by Guarantee
  • Public Company
  • Limited Duration Company 
  • Foreign Company
  • Limited Partnership
  • Exempt Limited Partnership
  • Trusts
  • Foundations

International Business Company

  • The authorized capital is declared, there is no requirement for its mandatory payment and the minimum and maximum amount of the capital.
  • The share capital may be issued in any currency. The following types of shares are allowed: registered shares, shares without par value, preference shares, redeemable shares and shares with or without voting rights, except for bearer shares.
  • Any activity non-prohibited by law is allowed. A special license is needed to conduct banking, insurance and reinsurance, trust services. Entrepreneurial activity is permitted only outside the country.
  • A company can not deal with residents of the Bahamas, own property in the Bahamas, sell their shares or raise profits from the public.
  • Annual registration fee depends on the size of the declared share capital: companies with registered capital of USD 5,000 are to pay USD 250 per year, companies with registered capital of over USD 5,000 pay USD 1,000 a year.
  • The name must not be identical or confusingly similar to the existing ones.
  • The minimum number of Directors is 1. Corporate directors and nominees are allowed.
  • The Board of Directors may be held anywhere in the world. The shareholders meeting is held only at the request of the Board of Directors or at the request of the owner of more than 50% of the voting shares.
  • There are no special requirements for the appointment of company secretary, but usually a secretary is appointed.
  • Submission of quarterly financial statements, annual report and audit are not required. However, the company must keep accounting records to reflect its financial position.
  • Information available upon request of third parties is: Memorandum of Association, the Charter, the name of the registered agent and registered office.
  • Information on owners of the company is confidential.

Trust

  • The legislation is based on the English trust law.
  • No need to register a trust with the Central Bank as a non-resident trust.
  • Trusts, the beneficiaries of that are not residents of the Bahamas, are exempt from all taxes.

Foundation

  • Bahamian fund has all the powers of a legal entity.
  • Audit is not required, unless otherwise stated in the Charter.
  • Foundation established in another country can be re-registered in the Bahamas, and Bahamian Foundation can be re-domiciled in another country, provided that such a move is allowed in this country.
  • Accounting and reporting shall be maintained, and shall be available for checking by any officer or auditor at any time.
  • Information of the Foundation is never disclosed without the express consent of the founder and beneficiaries.
  • A Foundation pays no taxes, except for USD 500 (the annual tax deductible).
  • The Charter of a Foundation can be made in any language.

Taxation

Any of the above companies are exempt from all taxes.

Agreements on avoidance of double taxation

No agreements. Over 12 agreements on exchange of information are signed, so that the Bahamas have been transferred to the "white list" by OECD.