Asset Protection
Advantages of Bahamas Company Formation
- No corporate income tax, capital gains tax, withholding tax or inheritance tax
- Incorporation in 2–5 business days once due diligence is complete
- No public register of beneficial ownership
- Common law jurisdiction, English-speaking, no exchange controls
- Established financial centre with a modern regulatory framework and political stability
Privacy Score
This score demonstrates how much privacy can be maintained by the company and the rate of disclosure of the corporate information for open public scrutiny. The higher the rate, the more privacy the company can enjoy. All rates are based on the open sources and subjective view of Astra Trust.
98
0
100
Tax Neutrality Score
This score demonstrates the tax burden applicable to the company and the jurisdiction as a whole. The higher the score, the lower are tax rates, and the easier is regulation. All scores are based on the open sources and subjective view of Astra Trust.
95
0
100
Reputation
This score demonstrates the reputation of the company and jurisdiction in the financial and business circles. The higher the score, the more favourable is the treatment by financial institutions, authorities, and counterparties. All scores are based on the open sources and subjective view of Astra Trust.
Very Good
Find out more about the Bahamas
The Bahamas is a sovereign country located in the Atlantic Ocean, consisting of more than 700 islands and cays. Known for its beautiful beaches and tourism industry, it also has a strong financial services sector that has made it a popular offshore financial centre.
The jurisdiction’s financial services industry dates to the 1930s and expanded through the 1980s as international banks and corporate service providers established their presence on the islands. Today it operates under a regulatory framework built around anti-money laundering supervision, beneficial ownership reporting and economic substance requirements.
Incorporation itself remains straightforward. A Bahamas company pays no corporate or personal income tax, operates in a common law system based on the English tradition, and faces no exchange controls. The principal vehicle for non-resident business is the International Business Company.
The following types of entities are available for Bahamas offshore incorporation:
- International Business Company (IBC)
- Limited Liability Company (LLC)
- Limited Partnership (LP)
- Domestic Limited Company
- Limited Duration Company
- Segregated Account Company
Why Set Up a Bahamas Company?
The Bahamas combines a zero-rate tax system with a common law framework, a regulatory regime that international banks recognise, and a location an hour from Florida. For non-resident owners this means a structure that is inexpensive to maintain, quick to establish and understandable to banks.
Modern regulation and infrastructure
A company formation in the Bahamas offers a stable political and economic environment that is conducive to business growth and development. All of these factors make offshore incorporation in the Bahamas an excellent alternative for individuals and businesses looking to establish a presence in a tax haven that is well-regulated and offers a stable environment.
Variety of structures and easiness of doing business
The most common business activity types of Bahamas companies are holding investments and intellectual property, ownership of vessels and aircraft, international trading, and estate planning. The choice between an IBC, an LLC and an exempted limited partnership depends on how the entity will be used and who will control it.
If you are comparing jurisdictions, our analyses of the Bahamas IBC against the BVI Business Company and of Cayman against the Bahamas address the differences that matter in practice.
Companies Incorporated in the Bahamas Are Often Used for the Following Purposes:
Tax Planning
Holding Company
Vessel Ownership
Taxation of the Bahamas Company
| Currency | Bahamian dollar (B$) |
| Corporate Income Tax | 0% |
| Withholding Tax | 0% |
| Capital Gains Tax Rate | 0% |
| Inheritance Tax | 0% |
| VAT | 0% |
| Exchange Controls | No |
Taxation in the Bahamas
The Bahamas is a tax neutral jurisdiction, meaning that individuals and businesses operating within the Bahamas do not have to pay any income taxes or tax on profits or gains.
Effectively, a Bahamas offshore company is tax-free on worldwide income from any source. Dividend distribution is not subject to tax in the Bahamas. Instead of tax, companies in the Bahamas pay a fixed government fee.
A popular choice for a tax-neutral company
The Bahamas is the primary choice to set up an offshore company in a tax-neutral jurisdiction.
The absence of personal income, inheritance, estate and gift taxes also makes the jurisdiction useful for estate planning, and there are no exchange controls on the Bahamian dollar.
For this reason, the Bahamas’ offshore company formation can be extremely useful for estate planning.
No value-added tax is applicable to offshore companies in the Bahamas.
The official currency of the Bahamas is the Bahamian dollar (B$). There are no currency exchange controls in the Bahamas.
Corporate Legislation in the Bahamas
The Bahamas has a well-developed legal system based on the English common law tradition. The country’s legal system consists of statutes, common law principles, and case law.
Supervision and business environment
The Bahamas offshore industry is overseen by the Securities Commission of the Bahamas. The commission ensures that Bahamas company formation services are carried out according to the country’s laws and regulations.
Under the International Business Companies Act, IBCs are not subject to Bahamian tax, and neither shareholder registers nor financial information are filed on public record. Beneficial ownership is separately reportable to the registered agent under the Register of Beneficial Ownership Act, 2018 and held on a database accessible to competent authorities through a secure search system. It is not a public register.
For the statutory procedure of name reservation, appointment of registered agent, Memorandum and Articles, filing and certificate of incorporation see our step-by-step guide to Bahamas company registration.
Bank account opening, nominee services, apostilled document sets and company dissolution are available separately.
Bahamas Domestic Limited Company
The Companies Act 1992 permits the incorporation of a domestic resident company that is limited by shares. This form of organisation is employed to conduct commerce in the Bahamas.
A list of shareholders must be included in the company’s annual return, and a minimum of two directors are required. This list is maintained in the public register. Financial statements are not required to be audited and are not filed.
The Bahamas IBC
The IBC, which was established under the International Business Companies Act 2000 as last amended in 2016, is the primary corporate entity that is registered in the Bahamas and is utilised for offshore asset holding. This legislation is a copy of the IBCA 1984, a former BVI legislation that shares some of the characteristics of the English and US company models.
The company is granted IBC status solely on the condition that it refrains from conducting business or owning real estate in the Bahamas. It is required to have a local registered agent, as well as one shareholder and one director of any nationality or residence. There is no minimum share capital requirement that can be denominated in any currency. Meetings may be conducted in the Bahamas, and they may be managed and operated from the Bahamas or from another location.
Under the Bahamas’ offshore legislation, IBCs are exempt from taxation and are not required to disclose their ownership or financial information to the public.
Bahamas Segregated Account Company
This company is a distinct legal entity that is incorporated under the Segregated Account Companies Act 2004. It is capable of segregating the assets and liabilities of one class of shares from those of other classes of shares (account). Each segregated class is isolated from the others. Assets of one account are not accessible to satisfy the liabilities of another account.
The Laws Regulating Bahamas Offshore Formation and the Financial Industry:
Process of Bahamas Company Registration
Stage 1
Contact us for more information and quotes. We answer within three hours!
Stage 2
Fill in a form, provide us with the required documents and make a payment.
Stage 3
Receive the scanned incorporation documents within two days, and hard copies by courier in up to seven days.
Required Documents To Incorporate In Bahamas
To incorporate a Bahamas company the following KYC documents are required:
- Certified copy of proof of ID for all directors, shareholders and beneficial owners
- Certified proof of address for all directors, shareholders and beneficial owners
- Two reference letters, one must be from a recognized bank and the second from a professional
- KYC form provided by your personal manager in Astra Trust
For more information click below to receive certification instructions and requirements.
Documents And Services You Receive After the Bahamas Company Formation
The Costs of the Bahamas Company Incorporation Include Services as Follows:
- Company name search in the Register of Companies for availability
- Revision of KYC and CDD documents
- Payment of Government Fees
- Necessary filings to the Registrar of Companies
- Drafting of activation corporate documents on incorporation of the company
- Bahamas Registered office services for 1 year
- Bahamas Registered agent services for 1 year
- Compliance Fees
- Full administrative support 24/7 from your personal manager in Astra Trust
The Company Incorporation in the Bahamas Package Includes the Following Company Documents:
- Certificate of Incorporation issued by the Bahamas Company Registry
- Certificate of Compliance issued by the Bahamas Company Registry
- Memorandum of Association stamped by the Bahamas Company Registry
- Articles of Association stamped by the Bahamas Company Registry
- Register of directors
- Register of shareholders
- Register of beneficial owners
- Resolution of subscribers appointing the first directors
- Written resolution adopted by the directors upon incorporation
- Share certificate
- Consent letter of the director
Other documents depend on the services ordered after company registration.
Need More Help To Setup Your Offshore Company in the Bahamas?
Feel free to ask any question to receive a complete qualified answer from our team
Company Name In the Bahamas
When choosing a name during the Bahamas offshore formation, you will need to ensure that the name is not already in use and that it complies with the requirements of the Companies Act.
The name must also include one of the following words or abbreviations:
- the word Limited or Ltd.,
- Limited Liability Company or LLC,
- Corporation or Corp.,
- Incorporated or Inc.,
- Societe Anonyme or S.A.,
- Sociedad Anonima or S.A.
Such abbreviations shall be at the end of the name of every company with limited liability.
Board Of Directors And Shareholders Of the Bahamas Company
When incorporating an offshore company in the Bahamas, you will need at least one shareholder and one director. A single person or entity can fulfil both roles. There are no residency requirements for directors or shareholders, and they can be non-Bahamians. Moreover, it is possible to have a corporate entity serve as a director or shareholder.
It is essential to understand the responsibilities of directors and shareholders when they set up an offshore business in the Bahamas. The board of directors is responsible for making critical business decisions and managing the company’s affairs. The shareholders, on the other hand, own a portion of the company and may have the right to vote on certain matters, such as electing directors and approving major transactions.
In the offshore industry in the Bahamas, a company secretary is a senior administrative officer who ensures that a company complies with legal and regulatory requirements. They manage relationships with offshore service providers, maintain corporate records, convene meetings, and assist with regulatory reporting. Their role is critical to ensuring that the company operates in compliance with laws and regulations and maintains its good standing in the Bahamas offshore jurisdiction.
Share Capital of the Bahamas Company and Types of Companies
The share capital requirements for offshore companies in the Bahamas are flexible. Companies can issue shares with or without par value and in any currency. There are no minimum or maximum share capital requirements, and there are no exchange controls or public records of shareholders or directors.
The Bahamas company can be set up with the following share capital structures:
- Company limited by shares
- Company limited by guarantee
- Company limited by shares and guarantee
In the Bahamas, there are two main types of offshore companies: International Business Companies (IBCs) and Limited Partnerships (LPs). IBCs are the most common type of offshore company in the Bahamas. They have many tax benefits and are useful for a range of business activities, including holding assets, trading, and investment.
The standard authorised share capital can be USD 50,000 with a par value of USD 1 each. In this case, the issued share capital can be one share of any par value up to USD 50,000 or 50,000 shares of par value of USD 1 each.
The authorised share capital of the Bahamas company can be both par value and no par value.
A Bahamas IBC can issue different classes of shares, as stated in its Memorandum of Association.
Bearer shares are not permitted in the Bahamas.
Privacy of a Bahamas Offshore Company
The Bahamas is a high privacy jurisdiction.
The Bahamas maintains no public register of beneficial ownership and does not have public or legitimate-interest access like those in BVI or Cayman Islands.
Beneficial ownership is separately reportable. Under the Register of Beneficial Ownership Act, 2018, a legal entity must notify its registered agent within fifteen days of identifying a beneficial owner. That information is held on a database maintained by the agent and accessible through a secure search system operated under the authority of the Attorney-General, confined to designated persons acting for specified competent authorities. It is not open to the public, to counterparties or to journalists.
Shareholder registers and company financial information are not filed on public record. The register of directors and officers is filed at the Companies Registry.
The Bahamas has strict confidentiality laws that protect the privacy of offshore companies. The names of directors and shareholders are not publicly available, and the company’s financial information is not disclosed to the public.
The only information that is available in public records is the Bahamas offshore company registration number, name, and registered office address.
Economic Substance Requirements In the Bahamas
The Bahamas has introduced economic substance requirements for companies operating in certain sectors.
Entities in scope must demonstrate that core income-generating activities are conducted in The Bahamas, that they are directed and managed there, and that they have adequate people, premises and expenditure.
All entities must file an annual substance declaration through their registered agent.
The substance requirements are imposed on commercial entities engaged in any of the following relevant activities:
- banking business
- insurance business
- fund management business
- financing and leasing business
- headquarters business
- distribution and service centres business
- shipping business
- commercial use of intellectual property
- as a holding company engaged in one of the activities listed above (or if a subsidiary of the holding company is engaged in one of the activities)
All other companies are not required to have a physical presence in the Bahamas.
Pure equity holding entities are subject to a reduced test.
Our Bahamas economic substance requirements guide sets out the scoping analysis, the tests and the filing deadline.
Reporting Requirements in the Bahamas
For companies that do not conduct activities in the territory of the Bahamas, there is no legal requirement to file accounts and tax returns in the Bahamas.
Companies in regulated sectors such as banking, insurance and fund management are subject to additional reporting to their supervisor. Full detail on the annual cycle is set out in our step-by-step registration guide.
Key Features of Bahamas company
General Information
- Jurisdiction – Independent nation
- Entity Type – International Business Company (IBC)
- Corporate Tax – 0%
- VAT – 0%
- Currency – B$
- Currency Exchange Control – No
- Legal Framework – Common law
- Recognition of Trust – Recognised
- Court of Final Appeal – Judicial Committee of the Privy Council
Business Activity Restrictions
- Business Activity Restrictions – No. Subject to standard licensed types of activities.
- Economic Substance Requirements – Applicable
Requirements to Directors
- Register of Directors – Publicly not accessible
- Minimum Number of Directors – 1
- Corporate Director – Available
- Local director – Not required
- Nominee Director – Available
Requirements to Secretary
- Secretary – Not required. Optional.
- Local Secretary – Not required.
Requirements to Shareholders
- Register of Shareholders – Publicly not accessible
- Minimum Number of Shareholders – 1
- Corporate Shareholder – Available
- Annual General Meeting – Not required
- Location of Meetings – Anywhere in the World
- Nominee Shareholder – Available
Share capital
- Minimum Authorized Share Capital – USD 1
- Standard Authorized Share Capital – USD 50,000
- Minimum Issued Share Capital – USD 1
- Currency of Share Capital – USD or any other
- Minimum Paid-Up Capital – Not Required
Reporting Requirements
- Preparation of Accounts – Not required
- Filing of Annual Return – Not required
- Publicity of Annual Return – Closed to the public
- Audited Accounts – Not required
Other features
- Redomiciliation to/from Jurisdiction – Permitted
- Shelf companies – Available
Frequently Asked Questions
What are the benefits of Bahamas company formation?
The Bahamas offers several advantages for company formation, including no corporate income tax, privacy for shareholders, and a stable political and economic environment
What types of companies can be formed in the Bahamas?
You can form various types of companies in the Bahamas, including International Business Companies (IBCs), partnerships, and limited liability companies (LLCs).
What documents are required to register Bahamas company?
Required documents generally include a completed application form, identification for directors and shareholders, proof of address, and reference letters.
What are the tax implications of Bahamas company formation?
Companies incorporated in the Bahamas benefit from no corporate income tax, capital gains tax, or inheritance tax, making it an attractive location for business.
How long does the Bahamas company formation process take?
The process typically takes 1 to 3 business days once all documentation is submitted and approved by the Registrar General.
Is it necessary to have a physical office in the Bahamas for company formation?
While you are required to have a registered office in the Bahamas, it does not need to be a physical office space. Astra Trust provides a registered office in the Bahamas to its clients.
Can a foreigner register Bahamas company?
Yes, foreign individuals can register and fully own their Bahamas companies.
Can I open a bank account after I register company in Bahamas?
Yes, once your company is registered, you can open a corporate bank account in the Bahamas or internationally, depending on your needs.
Can I conduct business outside the Bahamas with a company registered there?
Yes, a Bahamas-registered company can conduct business globally, although you must comply with the laws and regulations of the countries where you operate.
