How to set up a company in the Bahamas? Know here.
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The Bahamas is one of the world’s most popular offshore jurisdictions. It provides appealing circumstances for overseas entrepreneurs who desire to establish offshore enterprises there. This is perfect for tax planning, asset protection, and safeguarding the privacy of your personal information. How does a foreign individual go about buying an existing company or forming a new one in the Bahamas?
Why Set Up a Company in the Bahamas
The country’s taxation system is the most appealing element luring international investors to the Bahamas. Corporate tax, income tax, capital gains tax, royalties tax, dividend tax, and interest tax are all zero-rated. Furthermore, these terms apply to both resident and non-resident enterprises on the islands.
Why should you buy, register an offshore company in the Bahamas, or simply set up a company in the Bahamas? Here are the reasons:
- As there is no currency restriction in the country, your business can utilize any national currency.
- The Registrar will have information regarding the company’s beneficiaries, but it will take a court order to make it public.
- Accounting reports are not required to be filed;
- No audits are required;
- A local bank can help the business create a corporate account.
The cost of registering an offshore business in the Bahamas is cheap, as are the expenditures of maintaining the corporation. The application processing time ranges from 7 to 14 days.
One of the jurisdiction’s drawbacks is its formal offshore status. The Bahamas is on several nations’ lists of offshore jurisdictions, with all of the difficulties it involves. Furthermore, the country has not signed a single agreement with other countries to avoid double taxation.
Types of Company Ownership in the Bahamas
- SPV (Special Purpose Vehicle), a firm formed for a specific purpose.
- IBC (International Business Corporation)
IBCs are often registered in the Bahamas by foreign businessmen.
Requirements to Set Up an International Business Corporation in the Bahamas
This type of business ownership necessitates the fulfillment of specific restrictions and regulations. In the Bahamas, for example, an IBC does not have the authority to transact business or offer services to the local populace. It also cannot allow other businesses to utilize its legal address.
In the Bahamas, an IBC must have a local office that will act as its registered legal address. Furthermore, it is required to engage the services of a licensed local registration agency. The firm is unable to own property in the Bahamas. It can’t buy shares in local enterprises or enter into partnership arrangements with them. If any of these conditions are not met, the corporation will lose its tax-exempt status.
Steps to Register a Company in the Bahamas
Any legitimate transaction can be conducted through the acquisition or registration of an offshore company in the Bahamas. Banking, insurance, reinsurance, fund management, and trust management organizations are all needed to have a license.
You may set up an offshore business in the Bahamas without leaving your house. To do so, you must first complete the following steps:
Consider a name for your future business and make sure it’s distinctive. Building Society, Trustee Company, Royal, Bank, and other terms are prohibited from being used in the name.
Prepare copies of all corporate beneficiaries’ passports and proofs of address.
Create a business strategy and define the business sphere(s).
Establish a corporation office in the Bahamas.
Pay all state duties and fees. The firm must be registered with the Registrar.
The registration certificate, articles of association, a blank form of the share certificate, shareholders register, minutes of the first meeting of shareholders, directors register, and letter of director appointment are all included in the standard package of corporate documents for an offshore company in the Bahamas. If nominee services are employed, a power of attorney, a resolution, and the shareholder’s trust statement must be acquired.
How to Buy an Offshore Company in the Bahamas
Another alternative is to buy an already established business. If you need a corporate organization quickly, such as to close a commercial agreement, you may want to purchase an offshore company in the Bahamas rather than forming a new one. Our professionals will happily assist you with the purchase and registration of an offshore business in the Bahamas.
The purchasing procedure might take anything from one day to one week. You must select one of the various firms (with or without a history), take control of it, and register a corporate bank account. We will gladly assist you at each of these steps.
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