Incorporate in the Bahamas. The close-to-US offshore hub.
A Bahamas IBC is the classic Caribbean holding company, seventy miles from Miami and built on almost a century of financial-centre history. Zero corporate income tax, the Bahamian Dollar pegged one-to-one with the US Dollar, and a full common-law legal system with final appeals to the Privy Council. For US-adjacent clients, it is the most convenient offshore base in the region.
Used by US-adjacent clients, regional holding companies, and family offices that want a close-to-home offshore jurisdiction with US Dollar banking, English common law, and a long financial-centre track record.
Why form a Bahamas IBC?
The Bahamas has been a financial centre since the 1930s. It is the closest mainstream offshore jurisdiction to the United States, uses the US Dollar in practice through a 1:1 peg, operates English common law, and keeps the Privy Council as the final court of appeal. The modern IBC regime sits on top of that foundation.
Zero direct taxation
The Bahamas imposes no corporate income tax, no capital gains tax, no withholding tax, and no personal income tax. The fiscal regime runs on VAT and customs duties, not on taxing income. For a Bahamas IBC earning only foreign-source income, the local corporate tax bill is zero.
USD-pegged currency
The Bahamian Dollar is pegged one-to-one with the US Dollar. Corporate accounts for a Bahamas IBC are routinely denominated in USD, which eliminates FX conversion drag for cross-border flows.
Seventy miles from Miami
The Bahamas is the closest mainstream offshore jurisdiction to the United States. English-speaking, common law, direct flights from every major US city, US Eastern Time. For US-adjacent clients, it is the most convenient offshore base in the region.
English common law and Privy Council
The Bahamas inherits English common law and keeps the Judicial Committee of the Privy Council as the final court of appeal. The Supreme Court of the Bahamas has a Commercial Division for high-value corporate disputes.
Private shareholder register
The Registrar General's Department holds only the IBC's name, registered office, and director. Shareholder information is recorded privately with the registered agent and disclosed only on lawful authority request.
Off the EU blacklist, fully cooperative
The Bahamas was removed from the EU list of non-cooperative jurisdictions in 2018 after passing economic substance legislation. It now sits as a cooperative jurisdiction with active CRS and FATCA exchange, preserving correspondent banking access.
What is included in your Bahamas IBC formation
The headline price of US$2,795 covers the entire formation cycle, not just the government filing. No surprise invoices. No advisory line items that should have been free.
Bahamas IBC vs other offshore jurisdictions
The Bahamas is the close-to-US option. Here is the honest comparison against the other mainstream offshore jurisdictions.
| Feature | Bahamas IBC | BVI BC | Cayman | Belize IBC |
|---|---|---|---|---|
| Base formation cost | US$2,795 | US$2,195 | US$4,275 | US$1,995 |
| Setup time | ~7 days | ~10 days | ~14 days | ~5 days |
| Tax on corporate income | 0% | 0% | 0% | 0% |
| Annual renewal | US$1,195 | US$1,295 | US$2,495 | US$995 |
| Currency | BSD (USD pegged 1:1) | USD (legal tender) | KYD (USD pegged) | BZD (USD pegged) |
| Distance from Miami | ~80 km | ~2,100 km | ~740 km | ~2,000 km |
| Public shareholder register | No | No | No | No |
| Common-law and Privy Council | Yes | Yes | Yes | Yes |
| Bank account accessibility | Good | Good | Excellent | Moderate |
The bottom line: if you want a 0% jurisdiction within day-trip range of Miami, with USD-pegged currency and Privy Council finality, the Bahamas is the natural pick. If you need deeper banking and institutional acceptance, Cayman. If price matters more than convenience, Belize.
How to incorporate in the Bahamas, step by step
Seven business days is the realistic door-to-door timeline. Here is how the process actually runs.
Name reservation and paperwork
We reserve your name of choice and submit the paperwork for the directors and shareholders.
Filing and registration
Memorandum and articles of association filed with the Bahamas Registrar General's Department. Certificate of incorporation issued within 3 to 5 business days.
Certificate and document pack
Certificate of Incorporation issued and digital document pack delivered. You now have a working Bahamas IBC ready to operate or open a corporate bank account.
Optional Bahamas IBC add-ons
The base formation is enough for most clients. These are the extras our clients add most often.
Nominee director
Licensed Bahamas nominee director under a private mandate agreement. Your name stays off public filings.
Nominee shareholder
Shares held by a licensed nominee under a declaration of trust. Full beneficial control retained, zero public disclosure.
Bank account introduction
Warm introduction to a Bahamian or regional correspondent bank we regularly place IBCs with. Multi-currency USD accounts available.
Bahamas Executive Entity (BEE)
Set up a Bahamas Executive Entity under the Executive Entities Act 2011. A BEE has no shareholders and exists to act as a corporate officer (trustee, protector, enforcer) in multi-entity private wealth structures.
Economic substance filing
Annual economic substance classification, filing, and status-change monitoring. Required for in-scope Bahamian entities.
Annual compliance pack
Registered agent renewal, government annual fee, beneficial-ownership register maintenance, and economic substance return. Covers year two and onward.
Bahamas IBC: frequently asked questions
If you are researching whether to incorporate in the Bahamas, these are the questions we hear most often on strategy calls.
How long does it take to incorporate in the Bahamas?
About seven business days from the moment paperwork is cleared to the moment the certificate is issued. The Registrar General's Department processes filings in three to five business days. Name reservation, document preparation, and courier legs take care of the rest of the timeline.
Do I need to visit the Bahamas to form the company?
No. Everything is handled remotely. Documents are signed electronically where permitted and couriered for wet-ink signatures where the registrar or bank requires. The certificate is delivered digitally as part of your document pack.
Does a Bahamas IBC have to pay tax?
Not in the Bahamas. The jurisdiction has no corporate income tax, no capital gains tax, no personal income tax, and no withholding tax. The tax system runs on VAT and customs duties. For an IBC earning only foreign-source income, the local corporate tax bill is zero. Your home-country tax residence is a separate question.
Can I open a bank account for a Bahamas IBC?
Yes. Bahamas IBCs bank with a mix of local Bahamian banks and regional correspondents. Bank onboarding is more rigorous than it was ten years ago, but accounts are available for a Bahamas IBC with a clean KYC package. Our formation includes one bank introduction.
What is the advantage of the Bahamas over other Caribbean jurisdictions?
Proximity to the US. The Bahamas is eighty kilometres from Miami, uses the US Dollar in daily commerce through a 1:1 peg, operates in US Eastern Time, and has direct flights from every major US city. For US-adjacent clients, it is the most convenient offshore base in the region. It also has a longer history as a financial centre than most of its neighbours.
What is a Bahamas Executive Entity?
A Bahamas Executive Entity (BEE) is a private-wealth vehicle introduced under the Executive Entities Act 2011. It has no shareholders and no members. It exists to hold offices in other structures (trustee, protector, enforcer, director) within multi-entity family office setups. BEEs often pair with a Bahamas IBC underneath.
What are the annual renewal costs for a Bahamas IBC?
Plan on US$1,195 per year from year two onward. That covers registered agent, registered office, government annual fee, beneficial-ownership register maintenance, and an economic substance classification check. Nominee services and additional bank accounts come on top.
Does the Bahamas comply with CRS and FATCA?
Yes. The Bahamas signed the Common Reporting Standard multilateral agreement and has a FATCA IGA with the United States. Reportable account information flows to the respective tax authorities. Privacy in the Bahamas is about staying off public registers and creditor radar, not about hiding from tax authorities.
What is the Bahamas economic substance regime?
The Commercial Entities (Substance Requirements) Act 2018 requires Bahamian entities conducting "relevant activities" such as banking, insurance, fund management, financing and leasing, headquarters, shipping, IP holding, distribution and service centres, or holding-company business to meet local substance tests. Pure passive holding companies have a simplified test. We classify on the application.
Was the Bahamas removed from the EU blacklist?
Yes. The Bahamas was removed from the EU list of non-cooperative jurisdictions in 2018 after passing economic substance legislation. It now sits as a cooperative jurisdiction with active CRS and FATCA exchange, preserving full correspondent banking.
Can I redomicile a Bahamas IBC to another jurisdiction?
Yes. Bahamas IBCs can be continued (redomiciled) into any compatible jurisdiction (BVI, Cayman, Nevis, etc.) and vice versa, without dissolving and re-incorporating. The corporate identity, contracts, and bank accounts continue under the new flag. We handle the paperwork on both sides.
Is forming a Bahamas company legal?
Fully legal. A Bahamas IBC is a compliant offshore entity as long as you report ownership correctly in your country of tax residence (FBAR and Form 5471 for US persons, controlled-foreign-company reporting in most other jurisdictions) and pay tax where you are due. We handle the formation. Your tax adviser handles the reporting.
Ready to form your Bahamas IBC?
Seven business days, fixed US$2,795, everything included. Or book a strategy call first and we will pressure-test the structure against your actual situation before you commit.
Sources and references
- Registrar General’s Department (Bahamas), Companies Registry
- Central Bank of the Bahamas, Banking Regulator
- International Business Companies Act, 2000 (Bahamas, as amended).
- Commercial Entities (Substance Requirements) Act, 2018 (Bahamas).
- Executive Entities Act, 2011 (Bahamas).
- European Council, EU list of non-cooperative jurisdictions for tax purposes (Bahamas removed 2018).
- Judicial Committee of the Privy Council (final appellate authority for the Bahamas).