The Bahamas is 78 kilometers east of Palm Beach, Florida, and north of Haiti.
The Bahamas is a pure tax haven and has no direct taxation in the form of income tax, capital gains tax, gift tax or inheritance tax. The Bahamas is not a party to any double taxation treaties.
The type of Company for international trade and investment usage is International Business Company (“IBC”). An IBC is restricted to trade within the Bahamas or own real estate there. It cannot undertake the business of Banking, Insurance, Assurance, Re-Insurance, Fund Management, Collective Investment Schemes, Trust Management, Trusteeship, the rendering of investment advice or any other activity that would suggest an association with the Banking or Insurance industries. It cannot sell its own shares or solicit funds from the Public.
An IBC cannot take any name that has already been incorporated, or a name that is so similar as to cause confusion, or names such as "Royal" or "Imperial", etc. Any name which, in the opinion of the Registrar, is considered undesirable, obscene or offensive, or any name which suggests the patronage of the Bahamas Government is also not allowed.
Company names requiring consent or license are "Bank", "Building Society Savings", "Loans", "Insurance, Assurance", "Re-Insurance", "Fund Management", "Investment Fund", "Trust", "Trustees", "Chamber of Commerce", "University Municipal" or their foreign language equivalents or any name in English or a foreign language that may suggest association with the Banking or Insurance industries.
Names of an IBC must be suffixed with words of "Limited", "Corporation", "Incorporated";, "Societe Anonyme";, "Sociedad Anomina", "Gesellschaft mit beschrankter Haftung"; or other relevant abbreviations.
The normal authorized share capital is US $5,000; divided into 5,000 shares of US$1, this being the maximum capital for the minimum duty payable at the time of incorporation and the maximum authorized share capital for the minimum license fee payable annually The share capital may be expressed in any currency. The minimum issued capital is either two shares of no par value or two shares of par value.
Classes of shares that are permitted in Bahamas:
Registered shares
Bearer shares
Shares of no par value
Preference shares
Redeemable shares
Shares with or without voting rights.
License fees are payable by 31st July in the year following incorporation, and then annually thereafter. Companies with an authorized share capital, with a par value, up to $5,000 pay the sum of $100. 00 per year, which is fixed for a period of twenty years. Companies with a share capital between $5,001 and $50,000 pay $300.00 per year, and companies with share capitals in excess of $50,001 pay the sum of $1,000 per year.
The duty on a company, whose authorized share capital does not exceed $50,000, and where some or all of the shares have no par value, is $350. A company which does not have an authorized share capital and all of the shares have no par value also pays $350.00
Information Checklist
GENERAL
Political Stability Good
Common or Civil Law Common
Type of Company International Business Company
Disclosure of Beneficial Owner No
Migration of Domicile Permitted Yes
Tax on Offshore Profits Nil
Non‑English Language Names Allowed Yes
Currency US Dollar
Exchange Control None for IBC
CORPORATE REQUIREMENTS
Minimum Number of Shareholders One
Minimum Number of Directors One
Bearer Shares Allowed Yes
Corporate Directors Permitted Yes
Company Secretary Required No
Standard Authorized Share Capital $5,000
LOCAL REQUIREMENTS
Registered Office/Agent Yes
Company Secretary No
Local Directors No
Local Meetings No
Government Register of Directors No
Government Register of Shareholders No
ANNUAL REQUIREMENTS
Annual Return No
Submit Accounts No
RECURRING GOVERNMENT COSTS
Minimum Annual Tax/License Fee $100
Annual Return Filing Fee N/A
