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.
General reference only
This skill is general tax/accounting reference material for AI-assisted workflows. It has not been reviewed for your personal facts, documents, elections, deadlines, residency, filing status, or local procedures. Do not rely on it to file, pay, amend, or take a tax position without review by a qualified professional in the relevant jurisdiction.
Source-cited draft. This skill is source-cited but has not been reviewed by a licensed practitioner. It may be incomplete, outdated, or wrong.
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| Common entity types | 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 | |
| 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 ActExempted 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 | |
| Government incorporation fee — standard capital | USD 350 for authorised share capital of US 50,000 or lessInternational Business Companies Act, 2000 | |
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.
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.
Other Bahamas computations in the OpenAccountants library.
| Government incorporation fee — high capital |
| USD 1,000 where authorised share capital exceeds US 50,000International Business Companies Act, 2000 |
| Incorporation timeline | Typically 3 to 5 business days to issue the Certificate of IncorporationRegistrar General's Department |
| 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 |
| 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 |
| 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 |
| Economic substance compliance | Relevant entities must meet economic substance requirements and file an annual economic substance reportCommercial Entities (Substance Requirements) Act, 2018 |
| Business licence tax (turnover tax) | 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 |
| 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 |
| Business licence tax — turnover BSD 50,001 to 500,000 | 0.50% of turnoverBusiness Licence Act, 2023 |
| Business licence tax — turnover BSD 500,001 to 5,000,000 | 0.75% of turnoverBusiness Licence Act, 2023 |
| Business licence tax — turnover above BSD 5,000,000 | 1.25% of turnoverBusiness Licence Act, 2023 |
| Business licence renewal and payment deadlines | Licence expires 31 December; renew by 31 January; tax payable by 31 MarchBusiness Licence Act, 2023 |
Rendered from the facts database. General reference only — confirm with a qualified professional before acting.
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