Types of Companies that can be incorporated in The Bahamas
In The Bahamas, companies can be incorporated under the Companies Act, 1992 (“Domestic Companies”) and under the International Business Companies, Act (“IBC’s”).
Advantages of incorporating a company
Some of the advantages of incorporating a company are to facilitate investments, to minimize risk, to purchase and hold property, including real property and other assets. Likewise, a company can enter into contracts and commence action to defend those contracts on its own behalf. A company can also be used for the purpose of establishing an investment fund.
Most importantly, a company can be incorporated with limited liability in that the liability of its members may be limited to the amount unpaid on their shares.
Process for incorporating a Domestic Company
Two or more persons are required to sign or subscribe to a memorandum (which is known as the company’s memorandum of association) in the presence of a witness. This memorandum (which is required to contain certain prescribed information) must be submitted to the Companies Registry for filing along with the requisite fees in order to incorporate the company. Upon the filing of the said memorandum and the payment of the requisite fees, the company will be issued a certificate of incorporation which certificate is conclusive evidence of the incorporation of the company.
process for incorporating an IBC
An international business company is incorporated when the certificate of incorporation is issued, after the memorandum and articles of association have been filed at the Companies Registry. The memorandum of association is required to be subscribed by two persons in the presence of a witness. It is from the date of the certificate of incorporation that a body corporate comes into existence.
No person other than a bank or trust company licensed under the Banks and Trust Companies Regulation Act can incorporate an international business company unless such person is a Financial and Corporate Service Provider.