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How to set up a business on Bahamas?

Apr 06, 2017

When you have already thought about moving your business and choosing jurisdiction you might have come to decision about the Bahamas. This country, officially known as the Commonwealth of the Bahamas, and has all the advantages of an offshore jurisdiction. For example, tax climate for IBCs is close to perfect. International business is exempt of local taxes, including sales, dividends, corporation and capital gains tax. Also, international currency exchange rate and rules are very favorable for business. Bahamian government supports international currency incomes and this means that procedure of moving in foreign capital is simple. The fixed exchange rate towards US dollar is also an argument in favor of the Bahamas jurisdiction.

The Bahamas are located on the strategic point between the North and South America, and are considered one of the most economically stable, democratic, and secure countries for the international business. The process of starting and operating an international company is also simplified: government is interested in helping international companies in their functioning process.

Next, we should talk about registration process. How to set up a company and start your business as soon as possible?

  1. First step of setting up on the Bahamas is finding a reliable service provider. There are corporate and financial service providers who are licensed to manage offshore companies and assist them with all arising questions. Most common services from the providers are financial and legal recommendations and also assistance in the registration and set-up process. It is not obligatory, to choose the service provider but it will help you avoid any procedural mistakes while forming your company.

  2. Next step is to form a list of required documents and information for registering. Think of a unique company name and also start figuring out branding strategy straightaway. It is important to choose a couple of different names and check if they are available for registration. The Bahamas company can have a single shareholder or founder, so it is not complicated to figure out your needs. Share capital is also not a barrier for a business: standard amount of the capital is $5,000. All shares should be registered but it is a simplified process as well. You should also choose a director or executive along with shareholder. All company members shall confirm their identifications and financial information to complete the registration. Considering business activity of your company is also a serious step before forming a company on the Bahamas. It is also required for the Bahamas IBC to have a premise where all documents and seals will be kept, so think about renting your office in advance.

  3. In common, the whole registration and legalization process takes up to 10 days. You should collect all required information and documents and file an association memorandum with the Registrar General – governmental authority responsible for incorporation of the companies. Basically, you can complete registration process within a week if you have a proper consultant assistance and all necessary documents collected.

What are other offshore business secrets of the Bahamas? There is a special list you should get acquainted with. Also, international companies cannot involve in providing agent services. For trading or conducting your services for the Bahamas citizens, you should receive a special permit from the government. Banking, insurance and investing services will also require a special license. Another important fact is to start paying annual maintenance fee after a year of functioning. This tax is important for every company but it is common when founder simply forgets to pay it.

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