Bahamas companies are administered by the International Business Companies Act of 1990.  Living so close to the United States makes the Bahamian business development really popular for Americans and others seeing to form offshore limited companies. One cause for its reputation as an offshore corporation jurisdiction are the stringent privacy laws that benefit keep information about Bahamas corporations confidential and private. The Bahamian IBC is an organization that can be utilized to run a business outside of the Bahamas or to holds an offshore bank account or investment account.

Overview

Bahamas PSPs may involve in various activities including the fulfilling of payment transactions, publishing and/or acquiring of payment devices as well as money remittance.

The Central Bank of The Bahamas is bound for the licensing of entities giving payment services under the Payment Systems Act, 2012 and the Payment Instruments Regulations 2017, as well as for administration and guidance of payment instruments, including electronic money products.

The Central Bank has a responsibility to develop and maintain high types of administering and management of payment services. The Central Bank, through the Research Departments, watches the acquiescence of licensed entities in terms of usage of payment instruments, including electronic money products and similar services provided by all entities licensed for that purpose.

You will benefit from following when incorporating in the Bahamas:

  • No corporate tax
  • Payment companies enjoy less stringent regulatory
  • Advantageous tax remedy for shareholders of PSPs
  • A steady political environment
  • A cost-effective jurisdiction
Notable features

General information

Company structure

  •     At least one director required. Can be only natural persons, no nationality or residency limitations.
  •     At least one shareholder required. Can be natural or legal persons, no nationality or residency limitations.

Taxation

  •     No corporate tax
  •     No withholding tax (Returns, Interests, Royalties etc.)
  •     Other taxes – 0% (capital gains tax, stamp duty on offshore instruments)

Local office – Needed

Physical presence – Needed.  At least 3 local workers: Chief Executive Officer (CEO), Compliance Officer, Money Laundering Reporting Officer**.

Accounting and Audit requirements

  • All Payment Institutions Providers are expected to produce annual audited economic statements. Such reports are to be prepared in accordance with International Financial Reporting Standards (IFRS) and must be submitted to the Central Bank within three months of the end of the financial year
  • The Central Bank can further think a necessary to submit audited financial reports prepared in accordance with the simplified form of International Financial Reporting Standards for Small and Medium Enterprises (IFRS for SMEs)
  • Every Payment Business must yearly furnish a copy of the settled management letter from the external auditor to the Central Bank within ten days of its acceptance by the Payment Institution and not later than forty-five days after the close of the deadline for the submission of the financial statements
  • All providers are asked to submit periodically unaudited financial reports within twenty-one days of quarter end.

Company name

Language: English

Letters: From the Roman alphabet

Names that are misleading or tricky are banned

The company name is restricted to be alike or similar that of an existing company

Offensive names are prohibited

Procedure

In order to receive a license, the following steps will be carried out:

  • Application for booking of the company name
  • Preparation and submission to the Central Bank of the application for particular License
  • Preparation and submission of the paper and incorporation reports to the Registry
  • Incorporation of the company
  • Opening of the local bank account
  • Obtaining the PSP License
Important Documents
  • For local regulatory authority:
  • CV
  • A notarized copy of valid passport
  • Notarized 2nd ID
  • A copy of evidence of residential address
  • Bank Reference Letter
  • Bank Statement Leller
  • A notarized proof of a University Diploma