Trading in the Bahamas? The Advantages Of Trading Through an Offshore Company

Trading in the Bahamas? The Advantages Of Trading Through an Offshore Company

Offshore companies enjoy many benefits, in particular exemption from tax, anonymity and a high level of privacy.  And yet they are able to operate on a global scale and trade internationally. It’s not surprising, then, that many organizations are choosing to incorporate their companies offshore.  

If you are setting up in business or rethinking your existing business model, Parris Whittaker has years of experience advising companies and guiding them through the advantages of operating through off shore companies.

Your choice of legal model for your business is critical to its success. Let our expert company lawyers help you make the right decision: we are available to explain the benefits and pitfalls of the options available to you.

The Law

Company law in the Bahamas is governed primarily by the Companies Act 1992; and the International Business Companies Act 2000 for companies formed for offshore purposes. International Business Companies (IBC) may operate in the Bahamas or anywhere in the world. Critically, an IBC is not required to file annual returns.  But they are, however, legally required to pay an annual fee calculated on the size of its authorized capital. In practice, most will be private companies limited by shares.

Under the current legislation, companies will be granted IBC status so long as the organization follows strict requirements including:

  • The IBC must refrain from any local business activities unless permission is obtained;
  • The company can own (subject to approval) Bahamian real property - an IBC can also lease property for business purposes;
  • The IBC must not undertake in the Bahamas the business of banking, insurance, re-insurance, company management or registered facilities for Bahamian incorporated companies.
  • Further advantages of IBC offshore companies include:
  • Only one director is required;
  • There are no accounting or reporting requirements, so no accounting costs;
  • High levels of privacy protection.

Our expert International Business Companies lawyers can explain all the advantages of an IBC and how they can help your business.  We will also advise you of the legal requirements necessary to set up an IBC.  It is a relatively simple process and takes around 3-5 days: we are happy to organise the administrative requirements on your behalf. 

If you need advice on setting up in business or are thinking of incorporating a company for your existing business – whether or not as an IBC -  contact the experienced corporate lawyers at ParrisWhittaker for expert advice.