How do I start an offshore company in the Bahamas?

If you are planning to start an offshore company in the Bahamas, here are some thing you should know about:The taxation system is the most appealing factor for starting an offshore company in the Bahamas. This country offers zero taxation for corporate tax, income tax, capital gains tax, royalty tax, dividend and interest tax. Furthermore, these terms apply to both resident and non-resident businesses on the islands.The cost of forming an offshore company in the Bahamas is low, as are the expenditures of maintaining the company. It takes around 7 to 14 working days for your application to be processed.Offshore companies in the Bahamas can enjoy a high level of privacy, which is optimal for asset protection and retaining confidentiality of personal information. Remarkably, The 1990 International Business Companies Act of the Bahamas prohibits the exchange of knowledge on companies in the Bahamas with any other country.How to start an offshore company in the Bahamas with One IBC:1. Preparation Request free company name search. We check the eligibility of the name, and make suggestions if necessary.2. Filling Register or login and fill in the company names and director/ shareholder(s). Fill in shipping, company address or special request (if any).3. Payment Choose your payment method (We accept payment by Credit/Debit Card, PayPal or Wire Transfer).4. Delivery You will receive soft copies of necessary documents including: Certificate of Incorporation, Business Registration, Memorandum and Articles of Association, etc. Then, your new company in the Bahamas is ready to do business!

Are bearer shares permitted in the Bahamas?

A bearer share is an equity security that is entirely owned by the person or company who carries the physical stock certificate. Since the share is not registered with any authority, the easiest way to transfer ownership is to present the physical paperwork.When register a company in Bahamas, many businesses do not know if bearer shares are permitted in the Bahamas or not. To answer this question, the country used to allow bearer shares, but had eliminated them in 2000. All bearer shares prior to that have been recalled on June 30 2001. These changes were made in the International Business Company (IBC) Act 2000 as a repeal of the IBC Act 1989, with a view to improve the business law as well as gain trust from international investors. The Act also stated that there must be at least one shareholder in the company, and the beneficial owners of a corporation must be revealed to the registered agent, but they are not on public record.The elimination of the Bahamas bearer shares has addressed issues of transparency raised by the FSF, FATF, and OECD in relation to the identification, recording, and dissemination of pertinent information about legal and business entities.

Is the Bahamas a tax haven?

The Bahamas earned its tax haven reputation due to its foreign investor-friendly tax and business legislation. This is due to the fact that personal income, inheritance, gifts, and capital gains are not taxed in the Bahamas. Other taxes, including value-added tax (VAT), property taxes, stamp taxes, import tariffs, and license fees are the source of income for the government.Because of its reputation for stability, the Bahamas is an international hub for banking operations that attracts global financial organizations. Consequently, this attracts many companies and wealthy foreigners . With a per-capita GDP of $34,863.70 in 2019, the Bahamas are the third wealthiest country in the continent, after the United States and Canada.

How to know if the Bahamas is a tax haven?

No tax or only nominal taxes - Although the tax system differs by nation, all tax havens promote themselves as a place where non-residents may avoid paying high taxes by placing their assets or companies there. As a matter of fact, even well-regulated nations, although not classed as tax havens, still offer tax advantages to encourage foreign investment.High information privacy - Financial information is fiercely protected in the Bahamas tax havens. The Bahamas have explicit legislation or administrative processes in place to protect information from international influence and spying.No local residency - Foreign entities are usually not required to have a significant local presence in the Bahamas. Within its borders, there is no need to produce products or services, or to conduct trade or commerce as well as any local representative or office.

How to get approval for a business license in the Bahamas?

To get a business license in the Bahamas, non-Bahamians must first submit a Project Proposal to the Bahamas Investment Authority (BIA). Non-Bahamians must have a minimum capital investment of BS$500,000 outside of “Bahamians only” areas.The BIA will examine the application and forward it to the National Economic Council for review as well as these Government Ministry or Agency depending on the nature of the proposed commercial activity: Ministry of the Environment. Ministry of Works and Transport. Ministry of Housing. Respective Family Island Local Government.The BIA will notify the applicant in writing once a decision has been reached. They also collaborate with other government departments and support the project after permission is granted.

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

Apart from being an exceptional tourist country with stunning beaches, The Commonwealth of The Bahamas, commonly known as The Bahamas, is also famous for its attractive conditions to international investors who wish to start a business in the Bahamas. Here are all the steps and their associated costs to start a business in the Bahamas:

Check for an available company name: BSD 25
File the memorandum and articles of association: approx. BSD 650
Pay stamp duty on the memorandum to the Public Treasury: starting from BSD 100
File your company documents at the Companies Registry: BSD 1,000
Get the National Insurance Number (NIN) from the National Insurance Board: 0
Obtain a business license and VAT: 0

In comparison, the cost to start a business in the Bahamas is among the cheapest in the world. It is even lower considering all the benefits the country offers to international businesses here. If you are looking for a trusted corporate service provider to help you start a business in the Bahamas, check out One IBC’s Bahamas company formation service.

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