Introduction to the Bahamas Company Formation
The Bahamas is a business industry expert with offshore financial services. Those who want to have The Bahamas company formation have been attracting investors since the 30s and 40s because they do not charge taxes, and their policies are confidential. Even if it is not as popular after they gained independence from the Brits in 1973, in favour of BVI, Bermuda, or BVI, they remain to be a go-to jurisdiction for offshore corporate, banking, and trust services.
About the Bahamas Company Formation
- The corporations on the Bahamas must have a registered local office address that can be used for processing services and their notices.
- The company must have at least one shareholder, which could either be a corporation or private person. All the Bahamas corporations must be registered.
- There must be at least one appointed director, which can be a corporation or private individual.
- They must have an authorized capital, which is a maximum of $5,000 to pay the minimum fees of the government.
- Offshore corporations do not have to pay taxes. That means the corporations in the Bahamas have a 0% tax rate for corporations.
- Forming a corporation in the Bahamas has a yearly registration fee of BSD $1,100.
- The Bahamas gives assurance to the privacy of offshore corporations. The shareholders’ corporate names and directors are kept private. The International Business Companies of 1990 makes sure that the Bahamas corporate information is kept confidential.
- The corporation must keep records of minutes of the meeting at the registered office. These corporations do not have to file yearly reports.
- They do not require a yearly general meeting that is held locally. It can take place anywhere.
- Shelf corporations are made available so that incorporation is faster.
- The Bahamas company formation is confidential and the government provides privacy, and they are exempted from taxes for twenty years.
Why Set Up a Business in the Bahamas?
- The information about your company and you stay anonymous.
- Corporate income taxes are not required after the incorporation.
- Personal income taxes are not required when your corporation is formed.
- Laws that implement incorporation rules in the Bahamas are do not allow information sharing.
- Names and information of stakeholders remain private.
- The corporate shares are not charged with taxes.
- Retaining the company cost low every year.
- When the corporation is formed, it is not difficult to open a bank account in this country.
International Business Company (IBC)
The IBC is what most foreign investors choose because they have minimal requirements. They are mainly used for offshore companies that want to conduct business in the Bahamas.
An IBC only needs at least one director and shareholder, and there are no general meetings required. They also do not need to file a yearly statement, but IBCs must keep a current filing of directors and incumbent officers.
The company must be a designated resident of the Central Bank when conducting business in this country. The said designation would subject IBC regulations to facilitate Exchange Control and would ask IBC to get permission to handle foreign currency accounts.
With an IBC, the liability of the parent company to the subsidiary is only limited to the contribution of the parents to the subsidiary.
We at 3E Accounting will be here to help you with the Bahamas company formation so you can start and have everything you need ready.