The Bahamas is quickly becoming one of the best places to fish offshore. Whether an offshore office or financial services, the location has been in the business for a long time. Industry experts and job owners are interested in the location because of its tax system and high-end secrecy. Since the Bahamas don’t tax corporations, IBCs outside of the Bahamas will now have to get a business license and pay an annual fee on certain documents like stamp duty.
The pros of setting up a company in the Bahamas
Investors like to go to this country because it is rich overall, has a stable economy, is a tax haven, and has a well-established offshore banking industry. The government of The Bahamas is open to foreign investors. Still, if you want to run a company there, you should know that some types of businesses are only allowed to be run by Bahamian citizens.
Under the Business Licence bill of 2010, every company here must have a license. This is true whether your business is new or old. The most important thing you need to do to run a company here is to be a citizen or have lived there for a long time. The Bahamian Investment Authorities will have to give permission to people who don’t live or live in the Bahamas.
Companies that are known are:
- Sole proprietorship.
- Limited liability partnership.
- Limited liability company.
- Privately trading companies.
- Publicly Trading Companies.
Steps for registering a company
The following are the steps required:
Get a business license
You will need to get a form from the Business Licensing Unit Officers or online. To get a business name, you will add the right information. After filling out the form, it should be sent back to the offices of the business license division. If there is no business license division near you, you can send the form and documents to the Treasury Office or the Island Administrator. If the business name chosen isn’t available, the applicant will be told what other names are available based on the options on the application form.
Once the required documentation has been sent in and the business name has been approved, you can register your company in as few as 7 working days. The Business Licensing Unit will call the applicant to let them know that their business is now written and that they can pick up their certificate.
How much it costs to get a company registered in the Bahamas
In this country, registering a new company costs a flat fee of BS$ 100. The Schedule of Fees in the Business Licence Act of 2010 does affect how much many companies already in business pay. This is because they would pay based on their field, business type, and how much money they made that year.
Here’s how to fill out an application:
- Send the project proposal and any other documents that back it up to the BIA.
- The BIA will look over the application and send it to the National Economic Council so that a decision can be made.
Once a decision has been made, the BIA will let the applicant know about it in writing. If the decision is good, the BIA will give a “project approval in principle”, which is subject to any conditions and to meet the needs of the government agencies involved.
Also, keep in mind that the BIA approval is tied to the investors, not the project, so it can only be given to someone else with the BIA’s written permission.
Investment incentives
To encourage and make it easier for people to invest in businesses, there are a number of tax breaks and incentives that investors can apply for. Here is a brief summary:
The hotel’s encouragement act
The hotel’s encouragement Act lets approved building materials, furniture, and fixtures into the country duty-free. It also lets hotels and resorts avoid or pay less real estate tax for the first twenty years they are open for business.
The industries encouragement act
The Industry’s encouragement Act exempts or reduces customs duties on machinery, raw materials, and building supplies that are imported by companies that make things. It also exempts or reduces real estate taxes for 15 years. Applicants don’t have to pay customs duties for the first five years that the business is open. After that, applicants would have to pay 10% less duty on all approved materials and equipment they brought into the country.
