A visit to the Bahamas is not essential for the incorporation. However, it is required to register a company through a registered agent, according to the Companies Section of the Registrar General’s Department.

Obliged to the Exchange Control Regulations, IBCs in Bahamas are not subject to any exchange controls. The transactions can be conducted in any currency.

Absolutely not. The Bahamas welcome foreign investors; therefore, the company formation is flexible for any nationality.

An IBC registered under a limited company must have its name end with words such as “Limited”, “Limited Liability Company”, “Corporation”, “Incorporated”,etc… or their respective abbreviations.

Furthermore, a company name must satisfy the followings: Not identical or similar to the names of existing companies;

Not offensive, misleading in the opinion of the Registrar;

Names containing special words like “Bank”, “Insurance”, “Trust”, “Royal” have to obtain prior permission from the Registrar.

The incorporation of offshore companies in Bahamas is fairly straightforward and can be completed in 4 steps:

Step 1: Choose and reserve a company name

Select a name that is qualified as per the law in the Bahamas. You can research suitable names via the Bahamas Companies Registry website. Make sure to reserve your chosen name so that it won't be taken by someone else.

Step 2: Seek a registered agent

To set up an offshore company in the Bahamas, individuals are required to engage a third-party registered filing agent to do the application.

Step 3: Prepare and fulfill incorporation documents

You'll need to prepare personal documents such as notarized passport copies and proof of residence, bank and professional character references, as well as due diligence forms.

Step 4: File the incorporation documents

File all of the above documents with the Bahamas Companies Registry, along with your business Memorandum and Articles of Association, and the compliance certificate from your chosen registered agent.

It usually takes around 3-5 business days to process your application, after which a Certificate of Incorporation will be issued.

A Bahamas Limited Liability Company (LLC) is permitted under Bahamian law and may be incorporated under two forms:

Domestic limited liability companies as per the Companies Act 1992; or

International business companies (IBC) as per the International Business Companies Act 2001.

A Bahamas domestic LLC normally carries on local business and is allowed to transact with residents in the Bahamas. It can be formed by filing a Memorandum with the Registrar.

There is no requirement to file financial statements for a domestic LLC; however, you must file and keep on record an annual return that details all company members.

A Bahamas IBC is a more popular structure for offshore operations in the Bahamas. In setting up an IBC, you only need one director and one shareholder, who do not have to be Bahamian residents or citizens. In addition, there are no requirements to file annual returns, and financial records can be either kept domestically or outside of the jurisdiction.

By using an IBC, shareholders can rest assured that their personal information will remain confidential. There is no requirement to keep or publicly disclose the names of any shareholder without prior consent. This ensures a high level of data protection and privacy for the concerned parties.