Starting a business in Bahamas: foreigner's guide (2026)

A new standalone Registrar of Companies Act replaced legacy registry provisions, consolidating company-registration rules and anchoring a modernised digital portal for registered agents. The Act expands online capabilities, streamlines certificate issuance, and improves response times for business formation.

CESRA 2023 replaced the 2018 substance law and requires all non-resident entities incorporated in the Bahamas to demonstrate genuine economic presence through core income-generating activities conducted locally. Newly formed entities conducting 'relevant activities' must file annual declarations within nine months of fiscal year-end, adding a material compliance obligation that attaches at incorporation.

The Business Licence Act 2023 came into force on 1 July 2023, replacing the Business Licence Act 2010 and modernising the universal licensing requirement for every person conducting business in the Bahamas. The Act introduced clearer turnover-based fee rules, digital administration, and aligned licensing with new substance-reporting obligations under CESRA 2023.

An interim amendment to the 2010 Business Licence Act took effect 1 July 2022, revising turnover-tax rates and compliance requirements ahead of the wholesale 2023 replacement. The amendment also required 2022 filings to be re-submitted through a newly implemented online portal, marking the first phase of digital registry modernisation.

The World Bank's final Doing Business report scored the Bahamas 59/100 and ranked it 119th globally, exposing weaknesses in business-start procedures, costs, and time-to-register relative to peer economies. The report (the last before the index was discontinued) catalysed the government's subsequent legislative push to digitise the registry and simplify licensing.

The Register of Beneficial Ownership Act entered into force on 20 December 2018, requiring every Bahamian domestic and international business company to disclose beneficial owners to its registered agent within 15 days of incorporation or any subsequent change. The Act added a mandatory transparency step at the point of company formation, directly responding to OECD and FATF expectations.

The Commercial Enterprise Act came into force on 12 December 2017, creating a fast-track approval pathway for qualifying startups in designated sectors such as fintech, agribusiness, and manufacturing. Approved entities receive a Commercial Enterprise Certificate granting streamlined business licensing, immigration facilitation for key personnel, and import-duty concessions, materially reducing time-to-market.

The Business Licence Act 2010 replaced the original 1980 Act, consolidating and modernising the mandatory licensing regime for all businesses operating in the Bahamas and establishing the turnover-based tax structure that endured (through amendments) until the 2023 Act. It formed the legal backbone of business-formation compliance for over a decade.

The IBC Act 2000 (Chapter 309) came into force on 29 December 2000, replacing the 1989 IBC regime and establishing the modern framework for offshore company formation: full corporate personality, limited liability, exemption from local taxation on foreign income, and confidentiality protections. Over 40,000 IBCs have been incorporated under these rules, cementing the Bahamas as a leading offshore jurisdiction.

The Companies Act 1992 (Chapter 308) commenced on 1 August 1992, repealing the Companies Act of 1866 and consolidating the law on incorporation, management and control of domestic companies. Key changes reduced the minimum number of incorporators from five to two and required only a Memorandum of Association filed with the Registrar General, still the foundation of domestic company formation today.

The Registration of Business Names Act 1989 established the requirement for sole traders and partnerships operating under a trade name to register with the Registrar General's Department, creating the foundational public record of non-corporate business entities. It complemented the corporate registry and remains the basis for partnership and sole-trader formation in the Bahamas.

The Business Licence Act 1980 introduced the statutory requirement for every person conducting business in the Bahamas to hold a government-issued licence, with fees tied to turnover. This foundational legislation made business licensing a universal prerequisite to lawful commercial operation and shaped the compliance landscape for four decades until replaced in 2010.