CORPORATIONS IN THE BAHAMAS
The Commonwealth of the Bahamas, constitutes an Archipelago of 700 islands extending across the Tropic of Cancer, between Florida and Tahiti. Its capital, Nassau is located in the Island of New Providence. The population of the island is approximately 340,000 and most of them live on New Providence.
The Bahamas is one of the oldest Parliamentary democracies in the world. Its Constitution was promulgated in 1973 and it has been independent since then and remains as an active member of the British Commonwealth of Nations. Its legal system is based on the English Common Law and its economy is primarily based on tourism and offshore banking. The official language is English.
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SUCRE, ARIAS & REYES provides all services concerning the incorporation and management of the companies incorporated in the Island, through our affiliated office located in Nassau: SUCRE & SUCRE BAHAMAS.
IMPORTANT FACTS
The Commonwealth of the Bahamas has one of the leading offshore financial centers in the Caribbean due to numerous tax advantages awarded to International Business Companies (IBCÕs) and the simplicity and efficiency of the process of incorporation.
An IBC is a company that does not carry on business with persons resident in The Bahamas nor have persons resident in the Bahamas as beneficial owners of any of its shares; nor own an interest in real property situated in The Bahamas; nor carry on banking or trust business; nor carry on business as an insurance or a reinsurance company; nor carry on the business of providing the registered office for companies.
The legal currency is the Bahamian Dollar which have the same value as a US$.
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TAXATION
• The Ordinance of the International Business Companies Act of 1989, was effective as of January 1990 and allows all companies incorporated to be exempt from tax, i.e. no estate duties, direct or indirect withholdings taxes on income, capital gain tax, personal income, inheritance, corporate earnings, dividend payments or sale tax, except for an annual license fee.
• There are no restrictions or controls on currency exchange.
• The Bahamas has no double taxation treaties, however there is a Mutual Legal Assistance Treaty with the United States of America that only is applied to information related to criminal activity.
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REQUIREMENTS FOR INCORPORATIONS
A. Tailor-made Corporation- A completely new corporation formed upon client's specifications and organized in 3 working days or less.
B. Shelf Corporation - An inventory of companies previously formed is always maintained available for immediate dispatch.
Requirements and considerations when Tailor-Made companies are being incorporated :
Name: The corporate name must have the ending word Corporation, Incorporated, Limited, "Sociedad Anónima", Societé Anonyme or their abbreviations (Corp., Inc., Ltd., S.A.) The use of names including the words bank, insurance, reinsurance, trust or trustee, imperial, royal, cooperative, municipal, chartered, building, funds, chamber of commerce, is restricted. The Registrar can approve these names upon request and in specific cases, when licenses are obtained.
The use of names suggesting any connection with Government or the Crown are restricted.
In order to expedite the process you may provide at least three name alternatives in order of preference. These name would be verified by our office in Bahamas directly with the Registrar Office and availability is confirmed within a day.
Capital Structure and Shares: The authorized capital of the company is usually denominated in US$. However, any currency and shares may be issued. In case of share capital, shares can be with or without par value, with classes and preferences. Only Nominative are permitted.
The number of shares to be issued and the names and addresses of shareholders, must be provided.
Directors and Officers: Names and addresses of the directors or officers to be appointed, must be provided by the client, unless our nominee Director and Officer services are required. This information will be filed at the Registrar of Companies since the incorporation and it will be available to the public. A minimum of one Director is required, however it is recommendable to appoint two. Corporations can be appointed as Directors. These two figures could be of any nationality. All corporations must have a Secretary, but there may be as many Officers as deemed necessary (i.e. President, Vice-President, Assistant Secretary, etc.)
Shareholders: At least one shareholder is required for the issuance of nominative shares. Information of the shareholders are not matter of public record, however a copy of the Register of Members must be kept in the Registered Office.
Registered Office/ Agent: IBC companies must have a Registered Office/Agent located in Bahamas.
Register of Directors & Officers / Register of Members: A copy of these two Registers must be kept in our offices of Bahamas.
Books, records and corporate seal: Directors of the company may determine from time to time where the books, records and seal shall be kept.
Annual License Fees:
1. Authorized Capital up to US$50,000.00: US$ 350.00
2. Authorized Capital over US$50,000.00: US$1,000.00
3. Authorized Capital does not exceed US$50,000.00 and some shares has not par value or when the company has no authorized capital and all shares has no par value: US$350.00
Annual License Fees must be paid before April 30th of each year. 10% of surcharge is applied between May 1st – October 31st and 50% surcharge is applied between November 1st – January 30th. The company will be Struck off from the Registrar on January 31st if payments has not been settled.
Due Dilgence: To comply with the new regulations, SUCRE, ARIAS & REYES, must kept at any time, information of our clients, including details of the beneficial owners, directors and officers.
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