Company Formation in the Bahamas
Updated on Friday 10th January 2025
Rate this article based on 1 reviews
Foreign investors can register a company in the Bahamas. For this, they need to comply with the local requirements. It must be noted that, in the Bahamas, foreigners can set up a local company by appointing a registered agent or by being the beneficial owner of a legal entity.
In this article, our consultants in company formation in the Bahamas will present some of the most relevant matters investors should take into account when starting a local business. Some of these refer to: documents, fees, procedures, etc.
Offshore and onshore in the Bahamas
First of all, it must be noted that the Bahamas company incorporation provides the possibility of setting up onshore and offshore companies. The incorporation process is the same in both situations, the main difference being the one mentioned below:
- an onshore company refers to a legal entity that is incorporated by local or foreign investors, which is liable to local taxes and provides its services/products to local customers;
- on the opposite side, when we refer to offshore company formation, the notable difference is that the company is incorporated following the standard Bahamian rules, while it benefits from a preferential tax regime (many tax exemption) and its operations are addressed to foreign markets.
Basic documentation required for the Bahamas company incorporation
All companies in the Bahamas, whether they are onshore or offshore entities, must have a company name and a registered address. Thus, for the registration of the legal entity, investors must submit documents reflecting the reserved company name, the incorporation documents (memorandum and articles of association), the personal identification documents of the shareholders, etc.
Important note: local businesses can be incorporated by a single shareholder and a single director.
During the process of company formation in the Bahamas, investors must mention in the company’s memorandum the number of shares issued by the company. Our consultants can present further information on other data that must be provided during the registration of the company.
Onshore legal entities vs. offshore companies in the Bahamas
Businessmen who will opt for offshore company setup can incorporate an International Business Company (IBC). For onshore purposes, investors can opt for a private or public limited company. There are many differences between these entities, especially in terms of taxation. In the list below, we invite you to discover some of these differences:
- according to the Government of the Bahamas, companies can be incorporated in a period of minimum 1 days and up to 7, depending on the chosen business form;
- investors who will register a company in the Bahamas as an onshore business must pay a $330 registration fee;
- the time required for offshore incorporation (in the case of an IBC) is significantly lower than presented above, as the process can be completed through express incorporation (1 hour) or standard registration, which can take up to 48 hours;
- the IBC is incorporated following a specific law, the International Business Companies Act 2000;
- onshore companies are registered as per the stipulations of the Companies Act 1992.
Tax exemptions
Many foreign investors opt to set up their businesses in the Bahamas due to the favorable tax climate, which offers many tax exemptions and benefits. For instance, offshore companies are not required to pay the corporate tax. Additionally, companies are exempt from paying tax on dividends and capital gains.
We invite to address our team for further information on the tax benefits a company can have. We can help you register a company in the Bahamas and you can also rely on us for setting up an onshore or offshore bank account for your business.