Since the passing of Removal of Exemption Tax Act, all IBCs incorporated or continued after 31 Dec 2018 would be subject to any tax which is non-nominal, meaning that it is not zero or almost zero. Companies incorporated before that date will be given an extended period of three years to 31 Dec 2021. Fortunately, the current corporate tax of Bahamas now stands at 0%. In addition, there are no capital gains tax, estate, inheritance or succession tax.
Frequently Asked Questions
What is the current tax regime for a company incorporated in the Bahamas?
The name of an IBC
Any guidance on naming an IBC in the Bahamas?
An IBC registered under a limited company must have its name end with words such as “Limited”, “Limited Liability Company”, “Corporation”, “Incorporated”,etc… or their respective abbreviations. Furthermore, a company name must satisfy the followings:
- Not identical or similar to the names of existing companies;
- Not offensive, misleading in the opinion of the Registrar;
- Names containing special words like “Bank”, “Insurance”, “Trust”, “Royal” have to obtain prior permission from the Registrar.
Who can form an IBC in the Bahamas?
- Licensed financial & corporate service providers
- A bank of Trust company licensed under the Banks and Trust Companies Regulation Act
What are restrictions placed on activities of an International business company?
A Bahamas IBC cannot conduct business with residents unless obtaining prior approval of the Central Bank. The company can own land or hold interests in real property situated in the Bahamas, but it will be liable to stamp duty. Business in relation to bank & trust, insurance, company management services would require licenses from appropriate authorities.
Company director/shareholder/beneficial owner
Is there a minimum required number of directors/shareholders?
There should be at least one director and shareholder.
Is the information of directors/shareholders obliged to publicly disclose?
The company’s registers of directors/shareholders must be kept at the registered address, but does not need to file with the Registrar, and thus the information is not available to the general public.
What types of shares a Bahamas company can issue?
Voting and non-voting shares, common shares, preferred shares, redeemable shares, shares with par and no-par value… Bearer shares are not allowed.
What things need to be done to keep an IBC compliant with local laws?
The company has to maintain a local registered agent/registered address and pay annual government fee.