Bahamas IBC (International Business Company)
Profile
The Bahamas International Business Company is an entity ideally suited as an operational company doing business outside of The Bahamas, and benefiting from a favourable tax regime. The key restrictions placed on an IBC that separate it from a Bahamas LLC are that an IBC must not conduct business on Bahamas soil, it is specifically an offshore arrangement.
The jurisdiction of The Bahamas is considered attractive for incorporation not only because of its tax status, but also because of its stability. It is considered to be economically and politically stable, and is 85% English-speaking. The legal system is based on English common-law and well enforced. It complies with international standards for regulation and is economically allied with the USA. Bahamas IBCs are not subject to exchange controls on funds entering or leaving the Bahamas so money is able to be moved without restrictions.
A Bahamas IBC does have owners, shareholders, directors, and there is a minimum of one member required. There is no requirement for members to be Bahamas residents and meetings may be conducted remotely. Corporate members are also accepted.
Use Cases
Holding company for shares or other assets
The Bahamas IBC lends itself to be a great vehicle for holding purposes. It is similar to the BVI Limited Company while it is cheaper to maintain.
Offshore Business Revenue Center
The Bahamas IBC is also used as a cost center for businesses. With it's favourable tax regime and options to open a bank account it is a viable option to book revenue.
Tax status
The Bahamas has a favourable tax regime and an IBC is not liable for taxes including Corporation Tax, Capital gains tax.
Privacy
The names of directors and officers are registered and publicly accessible in the Bahamas, however it is possible to use nominees for improved privacy. Shareholder details are not filed with the registrar or publicly disclosed. The same applies to the Ultimate Beneficial Owners (UBO's) of the entity. Bearer shares are not permitted.
Onboarding
Getting onboarded to register your Bahamas IBC is a fairly straight forward process. We will need to know some information regarding the new company as well as a KYC and KYB check for all natural and corporate participants.
The following documents are required:
| KYC Documents | KYB Documents |
|---|---|
| Certified Copy of Photo ID | Certificate of Formation |
| Certified Copy of 2nd Photo ID | Register of Directors |
| Certified Proof of Address | Register of Members |
| Professional Reference | Share Certificates |
| Resume that is up to date | M&AA |
| Source of Wealth declaration | Consent to act as Director |
Company Name Options
- Purpose of the entity
- Country
- Source of Funds
- Financial Year End
- Legal Opinion (optional)
- Org Chart (optional)
- Nominee Participants (if applicable)
- Corporate Participants (if applicable)
- Natural Participants
- Share Capital
- Corporate Participant Information
Once this is all declared, you move on to the KYC verification process.
KYC Verification Process
The KYC Verification process is very straight forward and smooth thanks to our friends at SumSub. After submitting the online form with all the new company information all natural participants will receive a KYC invitation to upload the needed documents along with the required information.
Read more on how to use SumSub here.
Time to incorporate
The time to incorporate a Bahamian IBC generally takes 7-10 business days from the moment that all due diligence is completed. This means that all information about the new company along with all KYC and KYB details have been provided and all information is complete.
Entity Maintenance
Good accounting records are required to be kept, but do not need to be submitted or audited. There is no annual filing, but there is an annual renewal fee.
KYC Verification Process
The Bahamas do require that the KYC is followed and that proofs of address and ID are certified.
Entity Maintenance
Meetings are not required and submission of annual account records is not required. Transactions may be conducted in any currency.
Renewal Period
The Bahamas IBC is renewed annual on the 31st of March.
Reporting
Some companies operating in the Bahamas in very specific sectors fall under increasingly stringent regulations for Economic Substance. For those company types who
a) fall within the categories of banking, insurance, fund management, headquarters, shipping, holding, distribution, finance and leasing, and IP,
and who also
b) are directed and controlled in the Bahamas and c) has more than a certain level of activity in the Bahamas, then these regulations apply. The regulations do not apply to other companies.
KYC and AML Regulations
The Bahamas does comply with international protocols on anti money laundering and the incorporation of a company requires the members to undergo a KYC process. Documents used a proofs of ID and address need to be certified.
Updated about 2 months ago