Company Formation Survey 2008


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		1. Company law	Companies Act 1992, The International Companies Act 2000 with amendments 2001, and The Segregated Accounts Companies Act 2004.
		2. Types of company:	A company limited by shares or guarantee, an unlimited company; a limited duration company, a foreign company registered under the Companies Act 1992; an International Business Company (IBC) registered under the IBC Act 2000; a Segregated Accounts Company registered under the Segregated Accounts Companies Act 2004.
		(a) type of company preferred for international transactions:	IBC – preferred company for international transactions.
		(b) shareless companies:	The Companies Act makes provision for the incorporation of a non-profit company without share capital.
		3. Capital requirements:	Local Domestic: No minimum capital required. Local IBC: No minimum capital required.
		4. Costs to incorporate, excluding government fees:	Local Domestic Company: The cost of incorporation depends on the service provider but ranges from USD750 – USD1,600. IBC: The cost of incorporation depends on the service provider but could range from USD800 – USD1,800.
		5. Fees paid to authorities to incorporate:	Local Domestic Companies: (1) Stamp Duty: pays USD60 to Public Treasury Department on capital of USD5,000. Any capital over USD5,000, there would be an additional USD3 per thousand dollars. There are also fees for registration of Memorandum and Articles of Association at USD330 for both IBC and local domestic companies registration. (2) Certified Copies of Memorandum and Articles at USD30 per copy. IBCs: Registration fee is USD330 plus additional USD60 for two certified copies of Memorandum and Articles of Association.
		6. Annual fees paid to authorities:	Domestic Company owned 60% or more by Bahamian nationals - USD350. A Domestic Company less than 60% owned by Bahamian nationals - USD1,000.
		7. Taxation rates applied to companies generally:	Local Domestic Companies: If company is 100% owned by Bahamian citizens and has a Share Capital under USD50,000, it requires USD350 annual company tax paid to the Registrar General. If ownership is 60% owned by foreign citizens, it requires USD1,000 annual company tax paid to the Registrar General. IBCs: If company has a Share Capital of USD50,000, it requires USD350 annual company tax paid to the Registrar General. If Share Capital is over USD50,000, it requires USD1,000 annual company tax paid to Registrar General.
		(a) the taxation of companies in 2 (a)	Local Domestic Companies: pay annual company taxes based on annual gross revenues. It is also subject to Real Property taxes if it holds land located in the Bahamas. IBCs: Real Property tax is paid on an annual basis if the IBC owns property located in the Bahamas.
		8. Method of incorporation:	Local Domestic Companies: There must be a Registration of Memorandum and Articles of Association within six months after the issuance of Certificate of Incorporation document by the Registrar General Department. IBCs: The Registration of Memorandum and Articles of Association at the time of incorporation is required.
		9. Who may incorporate - specify what, if any, local representatives/ professionals required?	Local Domestic Companies: are incorporated by bank and trust companies, attorneys, and financial and corporate service providers. IBCs: are incorporated by licensed banks and trust companies and corporate service providers.
		(a) are ready made companies available?	Yes.
		10. Length of time to incorporate:	Local Domestic Companies and IBCs: are deemed to be incorporated within 48 hours based on name availability and reservation.
		11. Minimum members:	Local Domestic Companies: A minimum of two shareholders. IBCs: A minimum of one shareholder.
		12. Registered office:	Local Domestic Companies: All companies incorporated in the Bahamas are required to have a registered office. IBCs: These companies incorporated in the Bahamas are required to have a registered agent. IBCs: These companies incorporated in the Bahamas are required to have a registered agent.
		(a) Can the registered office be a bank/ lawyer/ accountant's office (brass plate)?	Yes.
		13. Directors and secretary:	Local Domestic Companies: Minimum of two directors. IBCs: Minimum of one director known as “sole” director.
		(a) Must a director/ secretary be resident?	Yes, a director/secretary should be resident of the Bahamas.
		(b) Are Corporate Directors allowed?	Yes, corporate directors are allowed to serve as directors of both IBCs and Local Domestic Companies incorporated in the Bahamas.
		14. Appointee directors/ secretary possible?	Yes.
		15. Amount of fees payable to appointee directors/ secretary:	This fee varies from service provider to service provider.
		16. Meetings:	Local Domestic Companies: Hold Annual General Shareholders’ Meetings (AGMs) which are required under the Companies Act 1992. IBCs: These companies are NOT required to hold AGMs. Directors’ Meetings are held in the event special resolutions need to be passed.
		17. Annual return:	Local Domestic Companies: are required to submit annual Statement of Returns which displays the shareholding of the company, the names of Shareholders, Directors, and Officers of the company. IBCs: are not required to submit Annual Statement of Returns, but are required to submit Registers of Directors and Officers to the Registrar General upon incorporation.
		(a) Must financial statements of a company be audited?	No, a company does not have to submit audited financial statements.
		18. Is disclosure of profits required by filing balance sheets with annual returns?	No.
		19. Are there any exchange control or other financial restraints imposed upon a company?	Local Domestic Companies: Exchange Control would be necessary when there is foreign ownership via shareholding in the local Bahamian domestic company. IBCs: Only when a Bahamian shareholder is one of the beneficial owners of shares in the IBC - this requires Exchange Control approval, or if the IBC is the owner of property located in the Bahamas it requires Approved Investment Status and permission to invest in the Bahamas.
		20. Companies formed in the last year:	Domestic Companies – 1,263; IBCs – 5,310; SACs – 31; ELPs – 11; LDCs - 2.
		21. Number of companies on the company register altogether:	Domestic Companies – 30,365; IBCs – 47,545; SACs – 51; ELPs – 209; LDCs - 99.
S I T E M A P BACK TO TOP		22. How, if any, is migration into and out of the jurisdiction achieved?	Continuation of IBC in accordance with the Bahamas’ laws of jurisdiction.
		23. Is migration out of your country provided for?	Yes.
		24. Any amendments to company law over the last 12 months:	None.
		25. Anticipated amendments to company law over the next 12 months:	None.