Source-cited draft: company formation & entity choice for Bahamas (tax year 2025) — rates, thresholds and rules with primary-source citations. Unverified; pending local-accountant review.
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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)
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 feesInternational 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 BahamasInternational Business Companies Act, 2000
Annual government / renewal fee
Annual registration fee payable to the Government each January after incorporationInternational 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 returnBusiness 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 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 flatBusiness 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 returnBusiness 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 turnoverBusiness 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 turnoverBusiness 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 turnoverBusiness 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 MarchBusiness Licence Act, 2023 (https://www.mof.gov.bs/about-business-licence-and-real-property-tax)
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