Bahamas

INTRODUCTION

The Bahamas is a chain of about 700 islands located 40-50 miles east of Florida; it has a population of 300,000. Most Bahamians live in two major urban centres: Nassau (its capital) and Freeport.

The Bahamas have one of the oldest parliamentary democracies in the western hemisphere and the islands have a political and legal system, which closely follows the UK system, and British common law applies.

Pressure from the US Treasury, concerned about the loss of tax revenue and money laundering by organized crime, led in 2000 to the Bahamas Government introducing a new Companies Act and related legislation designed to get the US and other fiscal bodies off their back. However so restrictive was this legislation that many established companies fled to other offshore jurisdictions (mainly to the BVI) and the Bahamas economy suffered greatly. In response new revised legislation was enacted in 2002 but concerns still exist as to the close co-operation that the Bahamas has with US agencies.

INTERNATIONAL BUSINESS COMPANIES

The International Business Companies Act established a corporate entity which requires the minimum of administration. The features of the IBC are that there is no requirement to file details of directors, shareholders, mortgages or charges.

There is a requirement to maintain a registered office and an authorised and licensed registered agent in the Bahamas and we provide this service as standard.

TAXATION/FISCAL REGIME

There is no taxation in the Bahamas so IBCs do not pay tax even if they do business within the country. This can make it useful for yacht ownership and chartering operations. There is no requirement to file financial statements, but a company must keep accurate accounting records to reflect its financial affairs.

IBCs pay a flat annual filing fee of US$350 upon incorporation and thereafter on the 1^st January each year. Substantial fines apply for late payment.

INCORPORATION TIMESCALE/NAMES

Suffixes such as Limited, Ltd, Incorporated, Inc, SA, GmbH or most others are permitted. Allowing for time differences, names can be checked and reserved instantly and incorporation takes place on the same day. Certain words are prohibited or subject to licensing requirements such as “Royal”, “Trust”, “Bank” and “Insurance”. Even using courier services it can take up to 2 weeks to receive documentation from the Bahamas. Because of this it is our practice to try and keep a number of “Stock” or “Shelf” companies available for instant transfer once we have received completed application forms and payment.

FEES FOR BAHAMAS IBCs

We charge £895 to incorporate a Bahamas IBC. This includes the first year’s registered office and registered agent fees and all government fees. Thereafter there is an annual fee (due on 1st of January or 1st June) of US$570 again including registered office, registered agent and government fees.

We can help and advise you in respect of the opening and management of bank accounts and the provision, if required, of company officers or managers.

HOW TO ORDER

Simply call us on 01952 270270 or send an email to:

ymf@arcorporatesecretaries.co.uk

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission. Prices are subject to change.