Start a Business in Bahamas. Fast Company Registration in Bahamas
Even though the Bahamas are best known for routinely making the lists of “most beautiful” locations to visit in the world, when taking a closer look at this sovereign country, it becomes apparent that there exists a very good reason why it’s recently become a hotspot for young entrepreneurs seeking an advantageous environment to start and grow a business.
Due to a number of factors, most notably its location and investment opportunities, this tiny island nation is fast emerging as a darling of the professional investor community and crypto entrepreneurs. The country is situated on the other side of the equator in the western Atlantic, bordering the US, Cuba, Hispaniola, and Caicos Islands.
Bahamas Company Registration – Key Facts
The Commonwealth of Bahamas is a constitutional monarchy based on the Westminster model. Its capital and biggest city is Nassau, a city that was affectionately dubbed “The Isle of June.” The main currency is the Bahamian dollar (BSD) which is kept pegged to the U.S. dollar. In recent years (2020-2021), the Bahamian economy enjoyed a rebound in part because of the surging tourism industry. It is expected to reach ~12.7 USD billion by the end of this year, solidifying its place as the nation with the second largest gross domestic product per capita in the Commonwealth Caribbean.
Those that want to go through the process of foreign company registration in Bahamas are well aware of the fact that their economic system is dependent heavily on tourism and global banking.
Main Advantages of a Bahamian Company Registration
- Political stability and democracy;
- Advantageous taxation policies;
- Personal information of stockholders and beneficiaries is never to be disclosed to the public;
- No minimal budgetary requirements for new company registration online in Bahamas;
- Foreign exchange control is laxer than in other jurisdictions;
- Skilled local workforce.
Information About the Taxes
- Corporate income tax – 0%;
- Personal income tax – 0%;
- VAT rates for goods and services – 7.5%-12%;
- Lack of inheritance or capital gains tax;
- Lack of double taxation.
Types of Businesses Available for Company Formation Online in Bahamas
- Bahamas foundation;
- Individual entrepreneurship;
- International business corporation (IBC);
- Joint venture (JV);
- Limited liability company (LLC);
- Partnerships: General, Limited liability, Undisclosed;
- Private unlimited company;
- Publicly traded company.
Rights and Responsibilities of an International Business Corporation in the Bahamas
IBCs aren’t allowed to do business with Bahamian residents in addition to investing in activities of any type of firm located in the country, excluding when leasing commercial property. Off-shore businesses are also forbidden from engaging in any money-making activities with any of the following: insurance, moneylending, trust funds, and reinsurance.
A business that was launched after foreign company registration in Bahamas is permitted to open bank accounts, hire local lawyers to resolve legal issues, conduct maintenance, arrange meetings of stockholders, keep and manage records. IBCs can own shares and bonds of other Bahamian businesses.
Requirements for Company Formation Online in Bahamas
- Article of incorporation
- Company memorandum and articles of association
- At least one stockholder
- At least one director (residence not important)
- An official corporate address
- Capital stock of $50k
- Notarized copy of passports
- Documents that prove residence
- Minutes of first board meeting
- Stock certificate
- Directors’ register
- Stakeholders’ register
Main Steps of the New Company Registration Online in Bahamas
The process itself is uncomplicated. In fact, it is quite simple. Down below, we will highlight the main steps involved in company formation online in the Bahamas.
- First consultation and initial agreement. In this step, you will have to figure out which kind of company formation process works best for your business. You will discuss the main financial goals, business objectives, and which model is best suited to your business.
- Payment. In the next step, you will have to pay the fees.
- IF ONLINE – Notarization of a power of attorney. That way, your consultant firm can proceed with the process of registration on your behalf.
- Preparation of paperwork. All the needed documents are gathered before proceeding to the next step.
- Paperwork signed at the notary. The company registration is officially done now.
Frequently Asked Questions for Bahamas Company Registration
Is it a tax haven?
Yes, the Organisation for Economic Co-operation and Development classified the Bahamas as such.
How long does it usually take to register a company?
On average, the process of registration can be finished in up to 4 workdays.
Is a local address required for company registration?
Yes, a local address is required for company registration in this country.
How long does it take to incorporate a company remotely?
Approximately one week is needed to finish the process of company formation online.
What should I know about tax on corporate profits?
If the company’s capital stock does not exceed $50k, corporate income tax is charged at $350. If the company’s stock capital exceeds $50k, then it will be necessitated to pay $1k
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