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.

Token Issuance for Airdrops

The VASP law in the Bahamas allows projects to distribute tokens by Airdrops. This makes the Bahamas IBC a great option to issue a token through an Airdrop.

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

The core documentation is the Memorandum of Association and the Articles of Association. The Memorandum covers the company’s purpose and objectives, and the Articles cover internal regulations for managing the company. These are registered with Bahamas Company registry as a part of the setup process. There must be a registered office address in the Bahamas as well as a local filing agent.

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.

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.

Costs

Registration costs are reasonable from $330 with annual renewal costs from $350, with some variation related to the company size.

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

Annual

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.