Company formation in Bahamas

At a glance

Entity

International Business Company (IBC) — the standard limited-liability vehicle for foreign founders, governed by the International Business Companies Act; a domestic 'company' under the Companies Act also exists but the IBC is the usual offshore form.

Corporate tax

0% corporate income tax, no capital gains, dividend or withholding tax (2026). The only exception is the OECD Pillar Two 15% top-up tax, which applies solely to multinational groups with EUR 750M+ in annual revenue. Domestic trading is instead subject to turnover-based Business Licence fees and 10% VAT.

Incorporation time

~1-2 business days once documents and KYC are in order (the Registrar offers a 1-hour express option and a standard ~48-hour service); allow longer for agent onboarding and bank account opening.

Minimum capital

No minimum share capital. Standard authorised capital is US$50,000 (typically 50,000 shares of US$1), which keeps the annual government fee at the minimum band; capital is fully at the founders' discretion.

Resident director

Not required. A minimum of one director is needed; directors and shareholders may be individuals or corporate entities of any nationality and need not reside in the Bahamas. A licensed local registered agent and a registered office in the Bahamas are mandatory.

Audit

No general statutory audit or public filing of accounts for an ordinary IBC. Audit obligations arise via the Business Licence regime for entities trading in the Bahamas — companies above the higher turnover thresholds (roughly BS$5M) must file audited financial statements. Adequate accounting records must be kept regardless.

Remote set-up

Yes — formation is handled entirely through a licensed Bahamian registered agent with no need to travel. Expect full KYC/CDD and beneficial-ownership disclosure to the agent under AML rules; documents are typically certified/notarised and, for foreign documents, apostilled. Beneficial ownership is filed to a non-public register.

Government fee

US$350 government fee at incorporation (and annually) where authorised capital is US$50,000 or less; US$1,000 where it exceeds US$50,000. Agent/registered-office fees are additional and charged separately.

Best for

For foreign founders and family offices who want a zero-tax, well-established offshore holding or asset-holding vehicle. Be ready for ongoing scrutiny around registered agents, economic substance, and bank onboarding.

The process

1. Engage a licensed Bahamian registered agent and complete KYC/CDD and beneficial-ownership disclosure.
2. Reserve the company name and prepare the Memorandum and Articles of Association, appointing at least one director and the registered agent/office.
3. File incorporation documents with the Registrar General's Department and pay the government fee (express or standard service).
4. Receive the Certificate of Incorporation, then complete post-incorporation steps: register/share issuance, Business Licence if trading locally, economic-substance assessment, and bank account opening.