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Bahamas
| Type of Company Available
There are two types of companies in the Bahamas. Companies incorporated under the 1866 Act are used now principally by residents for carrying on a business in the Bahamas. The International Business Companies Act of 1989 allows companies (IBC’s) to carry on business worldwide, untaxed, as long as they do not carry on a Business in the Bahamas. Other than in the support of an office they cannot own real estate in the Bahamas and may not be a bank, an insurance or re-insurance company nor a Trust company. An IBC can be incorporated with any name that is not considered undesirable by the Registrar and may not include words such as Bank, Building Society, Chamber of Commerce and any word that may indicate a connection with the Royal family or Government. An IBC name can be in English or any foreign language and can use the following suffixes to denote limited liability, "Limited", "Corporation", "Incorporated", "Societe Anonyme", "Sociedad Anonima" or the relevant abbreviations. The Memorandum of Association must state the name of the company, the registered office address in the Bahamas, the name and address of the registered agent, the value of the authorized share capital and the currency in which the shares are to be issued, the classes of shares, the number of shares that are to be in registered and bearer form and whether registered shares can be exchanged for each other. There should also be a notice provision for bearer shares. (It is recommended that Bearer Shares be issued for added confidentiality) The Articles of Association govern the internal affairs of the company. A Bahamian IBC must maintain a registered office address in the Bahamas and there must also be a registered agent who must be either a Lawyer, Solicitor or law firm, a licensed trust or Management Company. ( When an IBC is purchased from Sabourin and Sun Inc., a registered office address and registered agent is provided and included in the price of the IBC) There must be at least two Officers, who may be natural persons or Corporations. They can be either a Director and a Secretary, or if no Secretary is appointed, two directors. The names and addresses of the directors and officers are not available to the public, although this information may be lodged with the Registry if an official Certificate is required. The company must, however, maintain a register of Directors at the registered office. (When an IBC is formed through Sabourin and Sun Inc., Directors are provided, along with signed resignations - this is included in the set-up fee) The share capital of the company may be of nominal or par value and may be issued in any currency. There is no minimum capital requirement although it is normal to incorporate a company with an authorized capital of US $5,000 which is the maximum authorized capital of nominal value for the minimum initial and annual duty of US $100. For an Authorized Capital with a par value between $5,001 and $50,000 or a capital with no Par value the Initial and Annual duty is $300. For an Authorized Capital with a par value over $50,000 the Initial and Annual duty is $1,000. The minimum number of shareholders is two and may be individuals or corporations. All issued shares must be paid for in full. The company must maintain a register of members at the registered office although this information is not available to the public. The company is not required to file accounts nor file any annual returns. The company is totally exempt from any form of Bahamian taxes for a period of 20 years but is required to pay an annual license fee of US $100 on a share capital of US $5,000 or US $300 if the Share Capital is between $5.001 and $50,000 or $1,000 if the Share Capital is greater than $50,001. Subject to the Memorandum and Articles of Association the directors may hold meetings in the Bahamas or in any other country and there is no requirement for an Annual General Meeting. (The registered agent assigned to the company carries out all corporate custodial duties) Company Availability Subject to name approval, a company can be incorporated within 24 hours. Ready made companies are available for immediate use. Special Features The International Business Companies Act of 1989 offers total corporate flexibility with little if any compliance work and the directors and shareholders can enjoy local confidentiality if required. This, combined with total tax exemption for twenty years, make the Bahamian IBC a world leader in the offshore industry. Summary The attractions of the Bahamas and the Bahamian International Business Companies Act can be summarized as:
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