Achi Biz GuidesOffshore: Bahamas

Guide For Offshore Corporate Services In Bahamas

The Bahamas is an independent Commonwealth nation located close to Florida and north of Cuba. It consists of 700+ islands, though only about 30 are inhabited. English is the official language, and the country is a well-known destination for tourism as well as offshore financial services.

Infrastructure

The Bahamas has a good road network and strong communication systems. The government continues to improve transportation and technology to support tourism and financial industries.

Economy

Tourism and financial services drive the Bahamian economy. About half of the nation’s income and employment is directly or indirectly linked to tourism. Offshore services contribute to steady economic growth.

Legal System

The Bahamas follows English common law. The Court of Appeal is the highest local court, supported by magistrates’ courts on major islands. Legal processes are clear and internationally recognized.

Central Bank

The Central Bank of The Bahamas, located in Nassau, oversees monetary policy and supervises the financial system. The country has been using organized financial structures since 1919.

AML / FATF Status

The Bahamas is on the FATF list for having strategic AML concerns and is actively working with the Caribbean Financial Action Task Force (CFATF). The country follows international guidelines for preventing money laundering.

Corporate Entities

The most common offshore structure is the Bahamian International Business Company (IBC).
An IBC can operate international businesses, manage investments, or hold offshore bank accounts.
Companies from other jurisdictions can redomicile into or out of the Bahamas through a continuation process.

Taxation

The Bahamas is a tax-free jurisdiction for offshore companies.
No income tax, no corporate tax, no capital gains tax, and no wealth tax apply to foreign-sourced income.

Offshore Company Registration

The Bahamas IBC Act offers a modern and simple setup process tailored for international business needs.
A Bahamian IBC:

• Can act as a holding, trading, insurance, or investment company.

• Can contract, sue, and be sued in its own name.

• Can have individual or corporate shareholders.

• Does not allow bearer shares.

Key Features of a Bahamas Offshore Company

• The standard offshore company type is an IBC.

• Government fee starts around USD 350.

• No tax on foreign profits.

• No double-taxation treaties available.

• Standard share capital is USD 50,000, with minimum paid-up capital of USD 1.

• Shares without par value are allowed; bearer shares are not.

• One director is required; a local resident is not needed.

• Corporate directors are allowed.

• Records of directors may be publicly accessible, depending on structure.

• Meetings can be held anywhere in the world.

• Only one member (shareholder) is required.

• Company secretary is optional.

• Accounts must be prepared but not filed publicly.

• No annual return filing is required.

• Companies may change their domicile if permitted.

Specific Operating Conditions

• The local currency is the Bahamian Dollar (BSD).

• There are no exchange controls for IBCs.

• Main corporate law is the International Business Companies Act (2000).

• IBCs cannot trade within The Bahamas or own real estate unless approved.

• They cannot engage in banking, insurance, fund management, or trust services without a license.

• Names must avoid words linked with royalty or government unless approved.

• Names can be in any language, translated into English for registration.

• A registered office in the Bahamas (through a licensed firm) is mandatory.

• Beneficial owners are not publicly disclosed.