Bahamas, The

Starting a Business in

Bahamas, The

Below is a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Bahamas, The. It examines the procedures, time and cost involved in launching a commercial or industrial firm with up to 50 employees and start-up capital of 10 times the economy's per-capita gross national income.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 189 economies. The most recent round of data collection was completed in June 2014.

Compare Bahamas, The to 188 other economies.

  • Standardized Company

  • Legal form: Limited Liability Company (LLC)
  • Paid in minimum capital requirement: BSD 0
  • City: Nassau
No. Procedure Time to Complete Associated Costs
1 Search for a company name and reserve the proposed name online
Agency: Registrar General's Department

The online name search system has been in place since 2004 and it is estimated that less than 50% of all applicants use it while the rest still request the search in person. It is mainly used by lawyers and service providers who include the name fees in their fees. The name reservation expires after 90 days.
Less than one day (online procedure) no charge
2 A lawyer prepares and notarizes the company documents (memorandum and articles of association)
Agency: Lawyer

Legally, only the memorandum has to be filed at the moment of the incorporation. Standard articles of association are available and the memorandum has to be a statutory declaration. Therefore, the most common scenario is to prepare both. Since 2001, the Bahamas has issued many provisions on anti-money laundering and since then the information requested from the client has increased. Usually, a client has to provide the law firm with a financial and a character reference as well as a copy of his or her passport. Affidavit must be executed by witness to subscribers to Memorandum and Articles of Association and a Statutory Declaration must be executed by Notary Public that has notarized the affidavit before another Notary Public. Lawyer should be a notary (at the same time).

The memorandum and articles of association can also be prepared by a licensee under the Financial and Corporate Services Providers Act. However, notarization of the Statutory Declaration is still required.
1 day on average Usually about USD 650 (USD 100 to public treasury + USD 550 register of company)
3 Stamp duty on the memorandum paid to the Public Treasury
Agency: Public Treasury

The fees includes USD 100 stamp duty is payable on the first USD 5,000 authorized capital of the company and USD 5 for every additional USD 1,000 authorized capital.
1 day USD 100 stamp duty is payable on the first USD 5,000 authorized capital of the company and USD 5 for every additional USD 1,000 authorized capital
4 File the company documents at the Companies Registry
Agency: Companies Registry

The registration is usually done by a lawyer. The company is incorporated on the date that the incorporation documents are submitted to the Companies Registry. A registration fee of USD 330 is paid at the Registrar General’s office (USD 300 for the Memorandum and USD 30 for the articles of association). Once the final incorporation certificate is ready, an additional fee of USD 4 per page is charged to obtain a certified copy of the memorandum and articles of association.
10 days USD 300 for the memorandum + USD 30 for the articles of association + USD 4 (per page) for a copy of the memorandum and the articles
5 Obtain the National Insurance Number from the National Insurance Board
Agency: National Insurance Board

The National Insurance Number is a requirement to obtain business license. According to the National Insurance Act, every employer has to have a national insurance employer’s number. This could be obtained at no cost and it can be done in a day (by mail or in person). The document required for registration is a certificate of incorporation.

Employer also registers the employees if they have not been registered already. Where an employee is being registered with the National Insurance Board they must provide a copy of a document that verifies their birth, i.e. a birth certificate, passport or affidavit.
1 day no charge
6 Register the company for a business license at the Valuation/Business License Department of the Ministry of Finance
Agency: Valuation/Business Licence Department of the Ministry of Finance

Under the Business License Act all persons carrying on business in The Bahamas must have a business license before operations commence, whether or not the business is owned by Bahamians. Since the coming into force of the Business License Act, 2010 there is no longer a requirement to separately register the trading name of the company. The requested trading name is indicated on the Business Registration Form.

When the Business Registration Form is submitted it must be accompanied by: (i) proof of citizenship of the beneficial owners of the company; (ii) a copy of the Certificate of Incorporation of the company; (iii) a copy of the Certificate of Registration from the National Insurance Board; (iv) a copy of the lease for the property; (v) a copy of the Certificate of Sanitation from the Department of Environmental Health Services; and (vi) the licensing fee of USD 100.
10 days USD 100 (flat fee)
* 7 Obtain a company seal
Agency: Registry Agency 

A proof of seal has to be provided at the time of filing the first annual statement. Under Section 26 of the Companies Act of 1992, every company must have a common seal. Seals are locally manufactured and can usually be obtained within 2-3 business days at a cost of USD 30- USD 35.
2 days on average (simultaneous with previous procedure) USD 35
  * Takes place simultaneously with another procedure.

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