Company Formation in Bahamas

Company formation & entity choice for Bahamas (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.

Bahamas · tax year 2025 · changed 25 Jun 2026

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Key figures: Bahamas, 2025

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Common entity types overview

The most common vehicles are companies incorporated under the Companies Act, 1992 (domestic companies) and International Business Companies under the International Business Companies Act, 2000. Partnerships, exempted limited partnerships, and foundations are also available.

International Business Company (IBC)

Most common vehicle for non-resident/offshore business; governed by the International Business Companies Act, 2000International Business Companies Act, 2000 (https://www.rgd.gov.bs/service/incorporation-of-an-international-business-company)

Domestic company

Company incorporated under the Companies Act, 1992 for business conducted within The BahamasCompanies Act, 1992

Partnership / Exempted Limited Partnership

Available under the Partnership Act and the Exempted Limited Partnership Act ((approx — confirm))Exempted Limited Partnership Act

Minimum share capital (IBC)

No minimum share capital; standard authorised capital of US 50,000 (or 50,000 shares) keeps the company within the minimum government fee bandInternational Business Companies Act, 2000 (https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/The_Bahamas_-_International_Business_Company.aspx)

Government incorporation fee — standard capital

USD 350 for authorised share capital of US 50,000 or less ((approx — confirm))International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html)

Government incorporation fee — high capital

USD 1,000 where authorised share capital exceeds US 50,000 ((approx — confirm))International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html)

Incorporation timeline

Typically 3 to 5 business days to issue the Certificate of IncorporationRegistrar General's Department (https://www.bycpa.com/Html/news/20252/3041.html)

The full skill

Common entity types

Common entity types overview — The most common vehicles are companies incorporated under the Companies Act, 1992 (domestic companies) and International Business Companies under the International Business Companies Act, 2000. Partnerships, exempted limited partnerships, and foundations are also available.
International Business Company (IBC) — Most common vehicle for non-resident/offshore business; governed by the International Business Companies Act, 2000 (International Business Companies Act, 2000 (https://www.rgd.gov.bs/service/incorporation-of-an-international-business-company))
Domestic company — Company incorporated under the Companies Act, 1992 for business conducted within The Bahamas (Companies Act, 1992)
Partnership / Exempted Limited Partnership — Available under the Partnership Act and the Exempted Limited Partnership Act ((approx — confirm)) (Exempted Limited Partnership Act)
Minimum share capital (IBC) — No minimum share capital; standard authorised capital of US 50,000 (or 50,000 shares) keeps the company within the minimum government fee band USD (International Business Companies Act, 2000 (https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/The_Bahamas_-_International_Business_Company.aspx))
Government incorporation fee — standard capital — USD 350 for authorised share capital of US 50,000 or less ((approx — confirm)) USD (International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html))
Government incorporation fee — high capital — USD 1,000 where authorised share capital exceeds US 50,000 ((approx — confirm)) USD (International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html))
Incorporation timeline — Typically 3 to 5 business days to issue the Certificate of Incorporation (Registrar General's Department (https://www.bycpa.com/Html/news/20252/3041.html))
Incorporation steps — Reserve a name, prepare and file the Memorandum and Articles of Association with the Registrar General, appoint a registered agent and registered office in The Bahamas, and pay government fees (International Business Companies Act, 2000 (https://www.rgd.gov.bs/service/incorporation-of-an-international-business-company))
Registered agent / office — Every IBC must maintain a Bahamian-licensed registered agent and a registered office in The Bahamas (International Business Companies Act, 2000)
Annual government / renewal fee — Annual registration fee payable to the Government each January after incorporation (International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html))
Annual business licence — Companies carrying on business in The Bahamas must hold and annually renew a business licence and file an annual business tax return (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))
Economic substance compliance — Relevant entities must meet economic substance requirements and file an annual economic substance report ((approx — confirm)) (Commercial Entities (Substance Requirements) Act, 2018)

Business licence tax (turnover tax)

Business licence tax overview — In place of corporate income tax, businesses operating in The Bahamas pay an annual business licence tax assessed on the prior year's turnover under the Business Licence Act, 2023.
Business licence tax — turnover up to BSD 50,000 — BSD 100 flat BSD (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))
Business licence tax exemption — Businesses with turnover of BSD 250,000 or less are exempt from business licence fees but must still file an annual return BSD (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))
Business licence tax — turnover BSD 50,001 to 500,000 — 0.50% of turnover % (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))
Business licence tax — turnover BSD 500,001 to 5,000,000 — 0.75% of turnover % (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))
Business licence tax — turnover above BSD 5,000,000 — 1.25% of turnover % (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))
Business licence renewal and payment deadlines — Licence expires 31 December; renew by 31 January; tax payable by 31 March (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))

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Common entity types

Common entity types overview — The most common vehicles are companies incorporated under the Companies Act, 1992 (domestic companies) and International Business Companies under the International Business Companies Act, 2000. Partnerships, exempted limited partnerships, and foundations are also available.

International Business Company (IBC) — Most common vehicle for non-resident/offshore business; governed by the International Business Companies Act, 2000 (International Business Companies Act, 2000 (https://www.rgd.gov.bs/service/incorporation-of-an-international-business-company))

Domestic company — Company incorporated under the Companies Act, 1992 for business conducted within The Bahamas (Companies Act, 1992)

Partnership / Exempted Limited Partnership — Available under the Partnership Act and the Exempted Limited Partnership Act ((approx — confirm)) (Exempted Limited Partnership Act)

Minimum share capital (IBC) — No minimum share capital; standard authorised capital of US 50,000 (or 50,000 shares) keeps the company within the minimum government fee band USD (International Business Companies Act, 2000 (https://multilaw.com/Multilaw/Multilaw/Global_Business_Entities_Guide/The_Bahamas_-_International_Business_Company.aspx))

Government incorporation fee — standard capital — USD 350 for authorised share capital of US 50,000 or less ((approx — confirm)) USD (International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html))

Government incorporation fee — high capital — USD 1,000 where authorised share capital exceeds US 50,000 ((approx — confirm)) USD (International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html))

Incorporation timeline — Typically 3 to 5 business days to issue the Certificate of Incorporation (Registrar General's Department (https://www.bycpa.com/Html/news/20252/3041.html))

Incorporation steps — Reserve a name, prepare and file the Memorandum and Articles of Association with the Registrar General, appoint a registered agent and registered office in The Bahamas, and pay government fees (International Business Companies Act, 2000 (https://www.rgd.gov.bs/service/incorporation-of-an-international-business-company))

Registered agent / office — Every IBC must maintain a Bahamian-licensed registered agent and a registered office in The Bahamas (International Business Companies Act, 2000)

Annual government / renewal fee — Annual registration fee payable to the Government each January after incorporation (International Business Companies Act, 2000 (https://www.bycpa.com/Html/news/20252/3041.html))

Annual business licence — Companies carrying on business in The Bahamas must hold and annually renew a business licence and file an annual business tax return (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))

Economic substance compliance — Relevant entities must meet economic substance requirements and file an annual economic substance report ((approx — confirm)) (Commercial Entities (Substance Requirements) Act, 2018)

Business licence tax (turnover tax)

Business licence tax overview — In place of corporate income tax, businesses operating in The Bahamas pay an annual business licence tax assessed on the prior year's turnover under the Business Licence Act, 2023.

Business licence tax — turnover up to BSD 50,000 — BSD 100 flat BSD (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))

Business licence tax exemption — Businesses with turnover of BSD 250,000 or less are exempt from business licence fees but must still file an annual return BSD (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))

Business licence tax — turnover BSD 50,001 to 500,000 — 0.50% of turnover % (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))

Business licence tax — turnover BSD 500,001 to 5,000,000 — 0.75% of turnover % (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))

Business licence tax — turnover above BSD 5,000,000 — 1.25% of turnover % (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))

Business licence renewal and payment deadlines — Licence expires 31 December; renew by 31 January; tax payable by 31 March (Business Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax))