Starting a Business in the Bahamas

This table summarizes the procedures and costs associated with setting up a business in Bahamas, the.

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Legal Form: Limited Liability Company (LLC)
City: Nassau

	Procedure	Time to complete:	Cost to complete:
1	Search for a Company name and reserve the proposed name online	1 day	no charge (included in proceduer 2)
2	A lawyer prepares and notarizes the company documents (memorandum and articles of association).	1-2 days	B$500-800
3	A stamp duty has to be obtained from the Public Treasury for the Memorandum.	1 day	$60 stamp duty is payable on the first $5,000 authorized capital of the company and $3 for every additional $1,000 authorized capital
4	File t company documents at the Companies Registry	10-11 days	USD 300 for the Memorundum+ USD 30 for the Articles of Association + USD 4 for a copy of the Memorundum and the Articles.
5	Obtain the National Insurance Number for the Company from the National Insurance Board	1 day	no charge
6	Register the company for a business license at the Valuation/Business License Department of the Ministry of Finance.	2-3weeks	USD 100 (flat fee)
*7	Company Seal	2-3 days (simultaneous with previous procedure)	USD 30-35

* Takes place simultaneously with another procedure.

Procedure 1.: Search for a Company name and reserve the proposed name online
Time to complete:: 1 day
Cost to complete:: no charge (included in proceduer 2)
Name of Agency:
Comment:: The online name search system has been in place since 2004 and its estimate that less than 50% of all applicants use it while the rest still request the search in person. Since the majority of people cannot search it, it is mainly done by lawyers and service providers who include the name fees in their fees. The name reservation expires after 90 days.

Procedure 2.: A lawyer prepares and notarizes the company documents (memorandum and articles of association).
Time to complete:: 1-2 days
Cost to complete:: B$500-800
Name of Agency:
Comment:: 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 prepares 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)

Procedure 3.: A stamp duty has to be obtained from the Public Treasury for the Memorandum.
Time to complete:: 1 day
Cost to complete:: $60 stamp duty is payable on the first $5,000 authorized capital of the company and $3 for every additional $1,000 authorized capital
Name of Agency:
Comment:: the fees includes $60 stamp duty is payable on the first $5,000 authorized capital of the company and $3 for every additional $1,000 authorized capital.

Procedure 4.: File t company documents at the Companies Registry
Time to complete:: 10-11 days
Cost to complete:: USD 300 for the Memorundum+ USD 30 for the Articles of Association + USD 4 for a copy of the Memorundum and the Articles.
Name of Agency:
Comment:: The registration is usually done by the lawyer. The company is incorporated on the date that the incorporation documents are submitted to the Companies Registry. A registration fee of $330 is paid at the Registrar General’s office($300 for the Memorandum and $30 for the Articles of Association). Once the final incorporation certificate is ready, an additional fee of $4 per page is charged to obtain a certified copy of the Memorandum & Articles of Association.

Procedure 5.: Obtain the National Insurance Number for the Company from the National Insurance Board
Time to complete:: 1 day
Cost to complete:: no charge
Name of Agency:
Comment:: 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). Employer also registers the employees if they have not been registered already. The documents required for registration are birth certificate, photograph, and certificate of incorporation.

Procedure 6.: Register the company for a business license at the Valuation/Business License Department of the Ministry of Finance.
Time to complete:: 2-3weeks
Cost to complete:: USD 100 (flat fee)
Name of Agency:
Comment:: By law, companies has to have a business license but only non-Bahamians have to have it before starting a business. To obtain the license, the following documents have to be provided: proof of citizenship, copy of the certificate of incorporation, Registration of the business/trade name, a simple copy of the lease agreement of the office space or proof of ownership if owned, and a national insurance number. Flat fee of $100 for the first time registration is charged. Moreover, annual fees are levied as a percentage on the turnover of the company from the second year onwards.

Procedure 7.: Company Seal
Time to complete:: 2-3 days (simultaneous with previous procedure)
Cost to complete:: USD 30-35
Name of Agency:
Comment:: A proof of seal has to be provided at the time of filing the first annual income statement. The seal is required from every company according to Art. 26 of the Companies Act. Seals are locally manufactured and can usually be obtained within 2-3 days for $30-35.