Starting a Business - Bahamas

Foreigners may incorporate an IBC (offshore/international operations) or a domestic company under the Companies Act 1992. IBCs are self-contained, tax-neutral vehicles not permitted to trade within The Bahamas; domestic companies may conduct local business but face additional regulatory hurdles for non-Bahamians.

The IBC Act imposes no requirement for Bahamian shareholders or directors. Non-residents may hold 100% of shares; one shareholder and one director suffice (same person allowed). A licensed registered agent in The Bahamas is mandatory.

Non-Bahamians or non-Permanent-Residents wishing to operate a business locally must submit a Project Proposal to the Bahamas Investment Authority. The BIA forwards it to the National Economic Council (which meets bimonthly); approval is communicated in writing and is valid for 12–18 months.

Foreign investors in locally-operating businesses must demonstrate a minimum capital investment of BS$500,000. The proposed activity must also fall outside sectors reserved exclusively for 100% Bahamian participation (e.g., certain retail and service industries).

IBCs have no statutory minimum issued capital requirement; the standard authorized share capital is BS$50,000 but is not mandatory. Once documents are submitted to the Registrar General's Department, incorporation typically completes within 2–5 business days.

The International Business Companies (Amendment) Act, 2025 was enacted to align with FATF Recommendation 24, restricting nominee director/shareholder arrangements and requiring enhanced beneficial-ownership disclosure. Foreign-ownership rights themselves remain unrestricted.