Forms of Legal and Business Presence

If you consider the Bahamas as your potential target jurisdiction, you may establish here your business presence in these forms:

•    International Business Company (IBC) – a vehicle that can be founded by foreign natural and legal persons who bear liability for the entity’s undertakings solely within their contributions. This entity can be established for conducting business operations and management of other entities aboard. The minimum statutory capital for this vehicle is USD 50,000. As its title suggests, this company is treated as international.

•    Limited Liability Company (LLC) – is a vehicle that considered being local for the purpose of business conduction. So, it has to obtain a business license to run business in the Bahamas. The liability of founders (shareholders) of all undertakings is restricted to (i) the amount of funds paid to this company or (ii) guarantee.

•    Public Company – this vehicle is similar to LLC, but a compulsory annual audit has to be provided. It is also more complex to operate as three directors are required. This vehicle may appear a good option for large business.

•    General Partnership – this vehicle can be formed by at least two persons whose liability for all undertakings is not restricted. Their personal property also can be called.

•    Limited Partnership – a business arrangement that has to be conducted by at least two persons. This formation should have a (i) general partner whose liability for all undertakings is not restricted and (ii) limited partners who is liable for the partnership’s undertakings within the amount of their contributions only.

•    Trusts – a vehicle designed to protect certain types of assets, including those in other countries.

Registration Requirements and Steps

For the registration of a company in the Bahamas, IBC for instance, Glenmuir assist with the following:

1. Defining your commercial priorities in the Bahamas and structuring your business respectively.

2. Collecting information about founders and beneficial owners as IBC is required to hold respective registers without making them publicly available.

3. Choosing and approving the name of a future company.

4. Arranging the registration address.

5. Drafting statutory documents and registration forms for the prospective IBC.

6. Submitting documents to the Registrar of Companies.

7. Opening a bank account.

Legal and Regulatory Framework

Generally, the Bahamas have a favourable legal environment for doing business. In 2018, it made a great emphasis on compliance with the OECD requirements, but it can be considered as one of the most favourable form the point of confidentiality.

The main legal acts in the business area are the International Business Companies Act, the Register of Beneficial Ownership Act, the Commercial Entities (Substance Requirements) Act.

Advantages of the Jurisdiction

If you consider an option of forming a company in the Bahamas, you may potentially enjoy these basic benefits:

• Comparatively simple procedure for establishing and running a business• Great emphasis on ensuring privacy

• Extra opportunities for conducting import operations in certain markets• Developed tourism and banking industries

• Absence of currency controlTax SystemIf you think about registering a company in the Bahamas, you may need to know this information on taxes:

• Corporate income tax (CIT) rate – not applicable (N/A)

• Personal income tax (PIT) rate – N/A

• VAT – 0% or 12% locally

• Capital gains tax rates – N/A