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BACKGROUND
Geographical Location
The Bahamas extends in a 760 mile arc from 60 miles east of Palm Beach, Florida, to just north of Haiti. The
Bahamas consists of an archipelago of nearly 700 islands and 2,000 cays scattered over 100,000 square miles of
the brilliant blue waters of the Atlantic Ocean. New Providence Island, site of the capital city of Nassau, has
an area of 83 square miles. The second largest city, Freeport, is on Grand Bahama Island, which has an area of
530 square miles. It is less than 40 miles from Miami. The three largest islands in the chain are Andros, 2,300
square miles; Abaco, 650 square miles and Inaguas, 600 square miles.
Climate: tropical marine; moderated by warm waters of Gulf Stream.
Religions: Baptist 32%, Anglican 20%, Roman Catholic 19%, Methodist 6%, Church of God 6%, other Protestant
12%, none or unknown 3%, other 2%.
Population
The population of the Bahamas is approximately 283,705 (July 1999 est.) the majority of which live on the island
of New Providence and Grand Bahama Island. Many of the islands are uninhabited due to the lack of fresh water.
Political Structure
The Bahamas was initially settled in around 1640 by the Eleutherian Adventurers, a group of Englishmen who
sailed from Bermuda. The Bahamas has had a representative form of Government since the 17th century. In July 1973
the Bahamas achieved its goal of becoming an independent country within the British Commonwealth. A Governor-General
appointed by the British Government is responsible for defence, external affairs and internal security. However,
the real head of the Government is an elected Prime Minister who consults with a Cabinet of sixteen, twelve Cabinet
Ministers and four Ministers of State chosen from the Legislature. There are four political parties, the dominant
Progressive Liberal Party, Free National Movement Party, and Labour Party. The bicameral legislature has a 49 member
House of Assembly and a 16 member Senate.
Infrastructure and Economy
The Bahamas has excellent communications. Twelve airlines including Bahamas Air (the national carrier), Air
Canada, US Air and Delta Airlines, fly to the Bahamas. They offer daily flight schedules to New York and Miami,
weekly flights to Toronto also charter flights between European cities and Nassau. Miami is only 30 minutes away
by jet aircraft and New York is less than three hours away. British Airways has regular flights from the United
Kingdom to the Bahamas via Miami. In addition to Nassau International on New Providence, an airport with a runway
for jets serves Freeport, the Nation's second city and there are 41 other commercial airports and landing strips.
Excellent overseas telephone service includes direct dialling to the United States and Canada. A new telex system
has been installed and transmission of cable has been improved by an underground cable line extending to West Palm
Beach, Florida. There are also excellent postal and courier services.
Language
The official and spoken language is English. Creole (among Haitian immigrants)
Currency
The Bahamas Dollar which is on a par with the U. S. Dollar.
Exchange Control
Residents are subject to Exchange Control, but International Business Companies are exempted.
Type of Law
Statute Law and Common Law based on English Common Law.
Principal Corporate Legislation
International Business Companies Act 1989 (No. 2 of 1990) as amended.
KEY FEATURES TABLE
| General |
| Political Stability |
Good |
| British Based Legal System |
Yes |
| Type of Company |
IBC |
| Disclosure of Beneficial Owner |
No |
| Migration of Domicile Permitted |
Yes |
| Tax on Offshore Profits |
Nil |
| Non-English Language Names Allowed |
Yes |
| Corporate Requirements |
| Minimum Number of Shareholders |
One |
| Minimum Number of Directors |
One |
| Bearer Shares Allowed |
Yes |
| Corporate Directors Permitted |
Yes |
| Secretary Required |
No |
| Standard Authorised Share Capital |
US$5,000 |
| Local Requirements |
| Registered Office/Agent |
Yes |
| Company Secretary |
No |
| Local Directors |
No |
| Local Meetings |
No |
| Government Register of Directors |
No |
| Government Register of Shareholders |
No |
| Annual Requirements |
| Annual Return |
No |
| Audited Accounts |
No |
| Recurring Government Costs |
| Annual Tax/Licence Fee |
US$100 |
| Annual Return Filing Fee |
Nil |
COMPANY FORMATION
Type of Company for International Trade and Investment
International Business Company (IBC)
Procedure to Incorporate
Registered Agent delivers the Memorandum of Association to the registry. The Articles of Association can
either be filed at the same time as the Memorandum of Association or within 30 days from the date of incorporation.
Restrictions on Trading IBCs cannot Trade within the Bahamas or undertake Banking or Insurance business. They
cannot solicit funds from the Public.
Powers of Company
An International Business Company has all the powers of a natural person.
Language of legislation and corporate documents
English
Shelf Companies available
Yes.
Time Scale to Incorporate
24 Hours, but a further five working days should be allowed for the release of documentation from the
Registry.
Name Restrictions
Any Name that has already been incorporated, or a name that is so similar as to cause confusion. Names
such as "royal" or "imperial", etc. or any name which suggests the patronage of the Bahamas
Government.
Language of Name
The name can be in any Language, although the documents will be in English.
Names requiring Consent or a Licence
"Bank", "Trust" and "Insurance"
Suffixes to denote Limited Liability
"Limited", "Corporation", "incorporated", "Societe Anonyme", "Sociedad
Anonima", "Gesellschaft mit beschrankter Haftung" or the relevant abbreviations.
Disclosure of Beneficial Ownership to Authorities
No
SHARE CAPITAL, TAXATION, LICENCE FEES AND COMPLIANCE MATTERS
Authorised Share Capital
The normal authorised share capital, which is the maximum capital for the minimum duty, is US $5,000.
Classes of Shares Permitted
- Registered Shares
- Bearer Shares
- Shares of no par value
- Preference Shares
- Redeemable shares
- Shares with or without voting rights
Bearer Shares Permitted
Yes
Taxation
An International Business Company does not pay any tax on its worldwide profits to the Bahamas authorities.
Double Taxation Agreements
The Bahamas is not a party to any Double Taxation Treaties.
Licence Fees
Licence Fees are payable by 31st July in the year following incorporation, and then annually. Companies
with an Authorised Capital, with a par value, up to $5,000 pay the sum of $100. 00 per year, which is fixed for
a period of twenty years. Companies with a share capital between $5,001 and $50,000 pay $300. 00 per year, and
Companies with Share Capitals in excess of $50,001 pay the sum of $1,000 per year.
The duty on a company, whose authorised share capital does not exceed $50,000, and where some or all of the
shares have no par value, is $350. A company which does not have an authorised share capital and all of the shares
have no par value also pays $350.00
Financial Statement
Requirements Whilst there is no requirement to file Audited Accounts with the authorities, a Company is
required to keep financial records which reflect the financial position of a Company.
STRUCTURE OF MANAGEMENT
DIRECTORS
Minimum number of Directors
One.
Nationality and residence of Directors
The Directors can be of any nationality and resident in any country.
COMPANY SECRETARY
Company Secretary Required
Not a Requirement under the Act, but a Secretary is normally appointed to facilitate signing obligations.
SHAREHOLDERS
Minimum number of Shareholders
Two Subscribers, but the shares can be transferred to a single person.
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