The Bahamas offers tax neutrality with no corporate income tax or capital gains tax. However, Value-Added Tax (VAT) applies to taxable supplies in The Bahamas at a standard 10% rate, with certain zero-rated items.
To register a company, you work with a licensed registered agent who files incorporation documents with the Registrar General’s Department (often via the CARS online system), pays the required government fees, obtains the Certificate of Incorporation, and helps you meet ongoing compliance obligations.
Privacy is not absolute. The Register of Directors and Officers must be filed and can be searched for a fee, while the Register of Members is not publicly filed. Beneficial ownership information is kept in a secure, non-public system accessible to competent authorities.
Bahamas IBCs commonly transact in foreign currencies, while dealings in Bahamian Dollars (BSD) remain subject to exchange control, with some recent liberalisations by the Central Bank of The Bahamas.
From 1 January 2025, the Economic Permanent Residence (EPR) programme requires a minimum investment of BSD/USD 1,000,000 (in qualifying real estate or Central Bank zero-coupon bonds). EPR does not grant a general right to work in The Bahamas.
Congratulations on taking the first step toward launching your business! But before you dive into operations, there's one critical decision to make: Where will you register your company?
The jurisdiction you choose can significantly impact your company’s taxation, compliance requirements, international reputation, and long-term growth. One location that consistently stands out for entrepreneurs is The Bahamas, and not just for its stunning beaches.
The Bahamas is a top choice for registering an International Business Company (IBC), thanks to its business-friendly environment, strong legal framework, and efficient incorporation process.
Why Register in The Bahamas
- Bahamas IBCs must issue registered shares only (no bearer shares) under the International Business Companies Act, 2000, which supports bank-friendly transparency.
- There is no minimum paid-up capital, and companies need only one director (individual or corporate), with no residency requirement; board and shareholder meetings may be held anywhere, including electronically if the memorandum and articles allow.
- The Corporate Administrative Registry Services (CARS) platform also enables online name reservation, filings, and company searches, making ongoing administration more efficient.
What You Must Comply With
Accounting Records and Retention
- Keep reliable accounting records and supporting documents that explain transactions and the financial position.
- Maintain records for at least 5 years and ensure your registered agent can access them.
- No public filing of annual accounts for IBCs.
Registers and Filings
- The Register of Directors and Officers must be filed with the Registrar and can be obtained via a paid company search (but is not freely browsable)
- Members are kept by the company or its registered agent and are not publicly filed.
- Beneficial ownership information is maintained in a non-public secure search system accessible only to competent authorities, with recent reforms tightening response times and verification requirements.
Economic Substance (CESRA)
If you conduct “relevant activities” under the Commercial Entities (Substance Requirements) Act, 2018 (CESRA) (e.g., banking, insurance, fund management, financing & leasing, headquarters, distribution & service centre, shipping, pure equity holding, IP), you must:
- Be directed and managed in The Bahamas,
- Have adequate people, premises, and expenditure (or supervised local outsourcing), and
- Report as required (penalties apply for non-compliance).
Exchange Control
- IBCs are generally treated as non-resident for exchange control and may use foreign currency freely.
- BSD transactions are subject to Central Bank rules; note the phased liberalisations since 2018–2019.
Immigration Note (EPR)
- From 1 January 2025, the Economic Permanent Residence (EPR) programme requires a minimum investment of BSD/USD 1,000,000, either in qualifying real estate or Central Bank zero-coupon bonds with a minimum 10-year holding period.
- EPR does not by itself grant a general right to work in The Bahamas, so separate work permissions may still be required.
Reasons Why Companies Register in The Bahamas
1. No Minimum Paid-Up Capital
Flexible capital structures under the International Business Companies Act, 2000.
2. No Bearer Shares
Only registered shares permitted, improving transparency and bank acceptance.
3. Flexible Corporate Governance
Minimum one director (individual or corporate). No residency requirement. Meetings can be held anywhere, including electronically per the Memorandum and Articles.
4. Modern Filing Systems (CARS)
Online access through Corporate Administrative Registry Services (CARS) for filings and certified extracts.
How to Register an Offshore Company in the Bahamas
To register an offshore company in the Bahamas, you typically follow these steps:
1. Choose a Licensed Registered Agent
Only licensed agents can act as registered agent.
2. Select and Reserve a Company Name
Check availability and restricted words.
3. Prepare Constitutional Documents
Memorandum and Articles of Association and Registered Office details.
4. Complete KYC/AML
Proof of identity and proof of address for directors and shareholders, plus business particulars.
5. File Incorporation and Pay Government Fees
File with the Registrar General’s Department (often via CARS). Receive the Certificate of Incorporation.
6. Post-Incorporation Compliance
- File the Register of Directors and Officers within statutory timelines.
- Put accounting records and five-year retention in place, accessible to the registered agent.
- Assess CESRA-relevant activities, substance, and reporting duties.
- Pay annual government fees to maintain good standing.
Business Licence/VAT registration are required only if you carry on business in or from within The Bahamas or make taxable supplies for use in The Bahamas.
- Certificate of Incorporation
- Memorandum and Articles of Association
- Proof of Identity and Proof of Address (KYC/AML) for directors and shareholders
- Registered Office details in The Bahamas
- Share Certificates (if issued)
- Certificate of Good Standing (as needed)
- Business Licence where required for activities in The Bahamas
Directors, Shareholders, and Meetings
| Topic | Position |
|---|---|
| Directors | Minimum one; can be an individual or a corporate entity; no residency requirement. A Register of Directors and Officers must be filed and is publicly accessible. |
| Shareholders | Minimum one shareholder required; only registered shares permitted; bearer shares are prohibited. |
| Company Secretary | Not legally mandatory for an IBC, but commonly appointed as a matter of best practice or due diligence. |
| Meetings | Board and shareholder meetings may be held anywhere globally; electronic meetings are allowed if provided for in the Memorandum and Articles of Association. |
Costs, Taxes, and Fees (High-Level)
- Government fees: payable at incorporation and annually, based on authorised capital band. Confirm current fees with your registered agent at filing.
- Taxes: No corporate income tax or capital gains tax for IBCs. VAT 10% applies to taxable supplies in The Bahamas. Some goods and services may be zero-rated or reduced rate.
Risks of Incorporating In the Bahamas and How to Mitigate Them
| Risk | Why it matters | Mitigation | Authority / Law |
|---|---|---|---|
| Economic substance gaps | Non-compliance can trigger penalties and reputational risk. | Run a relevant-activity assessment, document people/premises/expenditure, and complete required reporting. | CESRA (Commercial Entities (Substance Requirements) Act) |
| Privacy misunderstandings | Assuming total anonymity can lead to missed filings (the directors/officers register is public). | Remember the Register of Directors and Officers is public; beneficial ownership is recorded in a non-public secure system available to authorities. | Registrar General’s Department; BO system via registered agents |
| Exchange-control delays | BSD payments may be slower or require permissions. | Prefer foreign-currency flows and pre-clear BSD needs with your bank per guidance from the Central Bank of The Bahamas. | Central Bank of The Bahamas |
So What are My Options for Registering an Offshore Company?
While setting up a company in the Bahamas can look attractive on paper thanks to tax neutrality and a degree of financial privacy, there are also regulatory, banking, and substance-related challenges to navigate.
That doesn’t mean you’re out of options.
Hong Kong has become one of the leading choices for entrepreneurs who want a company to run international or “offshore” operations, combining a simple incorporation process with a strict rule of law and access to Mainland China.
Hong Kong is consistently ranked among the world’s most competitive economies and currently places third globally in the 2025 IMD World Competitiveness Ranking. It offers a low, territorial profits tax regime, political and legal stability, high-quality infrastructure, and a skilled workforce.
For a straightforward private company limited by shares, you can usually incorporate online with the Companies Registry in about an hour once the name and documents are ready, especially if you use a provider like Air Corporate.
It only takes a few hours to register a company and open a corporate bank account, and you don't even need to travel to Hong Kong to get everything organized.
FAQs
The Registrar General’s Department (RGD) incorporates companies, maintains the corporate register, and provides paid access to company information (for example, certified copies and searches via CARS). For International Business Companies (IBCs) there is no annual return filing; instead, IBCs pay annual government fees and must maintain accounting records. Annual return/statement filings apply to Companies Act domestic companies (and to foreign companies registered under that Act), not to IBCs.
If you incorporate a company in The Bahamas (e.g., an IBC), you receive a Certificate of Incorporation from the RGD. A Certificate of Registration is issued when a foreign company registers under the Companies Act to carry on an undertaking in The Bahamas.
Common options at the corporate registry include companies under the Companies Act (Cap. 308), International Business Companies (IBCs) under the IBC Act 2000, Segregated Accounts Companies (SACs) (designation under the SAC legislation), and Exempted Limited Partnerships (ELPs). Sole proprietorships are possible but are handled primarily through the Business Licence regime rather than as companies on the RGD register. A “joint venture” is typically a contract or a JV company using one of the foregoing forms.
