What Better Way of Acquiring a Piece of The Bahamas Market Than to Incorporate a Company
As one of the gorgeous places on this planet, The Bahamas boasts endless natural beauty on each of its islands. Though many similar island nations share the same immaculate beaches and crystal clear waters and extensive coral gardens, The Bahamas will always have something more to offer. It’s well preserved natural beauty is a commitment by the government to ensure the island nation will last for generations beyond. With that, The Bahamas relies heavily on the tourism industry as their primary economy. With a population of about 400,000 people, The Bahamas receives millions of travelers all year round. As the Bahamian government graciously promotes foreign investment, The Bahamas has also become a preferred spot for offshore business services. The likes of offshore banking and financial services make up the most in The Bahamas.
The Bahamas Perks
Though recently hit by the Hurricane Dorian in 2019, The Bahamas is quickly rebuilding and reopening their doors to their regular travelers as well as global visitors. If you look closely at The Bahamas map, their closest neighbours and frequent travelers are from the U.S. Hence, local businesses, as well as foreign entities in The Bahamas, can easily take advantage of the multitude of travelers throughout the year. That is within the tourism industry or its spillover services. Besides tourism, the government puts in place an appealing tax system in The Bahamas. The tax system in The Bahamas is no tax. Let me repeat that, there is no corporate tax, income tax, capital gains tax or wealth tax. The Bahamian government derives revenue from value-added tax (VAT), property & import taxes and business licensing fees. That’s how The Bahamas attracts and retains foreign entities to the island country. If I had the capacity, I would use that primary fact to begin The Bahamas company incorporation right away. International businesses can also look into specific investment areas that carry investment incentives.
The Company Incorporation
If you are keen on setting up trade in The Bahamas, then you should start preparing for company incorporation now, if not the near future. This is a general guideline to incorporate a company in The Bahamas. Here, the Bahamas Investments Authority (BIA) plays a vital role in company incorporation on the island. As a foreigner interested to set up business in The Bahamas, they need to obtain initial approval from the BIA. The BIA is the watch person of foreign direct investments of The Bahamas.
A business establishment in The Bahamas would begin like this:
- Submitting a comprehensive Project Proposal to the BIA. A local legal counsel usually applies together with supporting documents.
- The BIA will process the application. It will submit to the National Economic Council for a conclusion. Depending on the nature of the project, relevant ministers would be consulted for further input.
- If all is good, the BIA will consent the project in principle.
Next is The Bahamas company incorporation process.
You can opt to incorporate either type of company in The Bahamas. One is a Domestic company – incorporated under the Companies Act, 1992, and the other is an International Business Company (IBC) – incorporated under the International Business Companies Act, 2000. If you are incorporating a company that will have direct ties to the local scene, then a Domestic company makes more sense.
- A domestic company can be private companies limited by shares or guarantee, or public companies.
- A Memorandum and Articles of Association must be filed at the Companies Registry.
- The domestic company should have a minimum of two shareholders and two directors
- It should have a registered office in The Bahamas.
- Domestic companies must hold Annual General Meetings and file the Annual Statement.
- The Company certificate will be issued once all is done
If you have concerns about how to incorporate your company in The Bahamas, you may contact us for further assistance. We will gladly assist you at whichever state you are.