Frequently asked questions regarding the incorporation of domestic companies and International Business Companies in The Bahamas

The post below merely answers various questions which are commonly asked regarding the incorporation of domestic companies (i.e. companies incorporated under the Companies Act) and International Business Companies (i.e. companies incorporated under the International Business Companies Act).  The information contained below is fairly basic.  I will post more detailed information regarding companies and other special purpose vehicles soon.  Don't forget, if you have specific questions that are not answered here, please post your comments and I will do what I can to answer them.  If you require specific advice, please do not hesitate to contact a Bahamian corporate lawyer or a Bahamian corporate services provider.  You can do so by clicking here. 1. How long does it take to incorporate an International Business Company (IBC)? 2. How much does it cost to incorporate an IBC? 3. How much does it cost to incorporate a Company under the provisions of the Companies Act? 4. How many directors must an IBC have? 5. Are the names of the shareholders of an IBC on a public register? 6. Are the names of the directors and officers of an IBC on a public register? 7. Does an IBC require a registered agent in The Bahamas? 8. How much does it cost to maintain an IBC? 9. How much does it cost to maintain a Company incorporated under the provisions of the Companies Act? 10. How long does it take to liquidate an IBC?

1. How long does it take to incorporate an International Business Company (IBC)?     It usually takes 24 to 48 hours to incorporate an IBC. 2. How much does it cost to incorporate an IBC?     The typical incorporation fee is around $700 (exclusive of disbursements).  Incorporation fees can vary slightly between corporate service providers. 3. How much does it cost to incorporate a Company under the provisions of the Companies Act?     The typical incorporation fee is around $1000 (exclusive of disbursements).  Again, incorporation fees can vary slightly between corporate service providers. 4. How many directors must an IBC have?     An IBC must have at least one (1) Director. 5. Are the names of the shareholders of an IBC on a public register?     The names of the shareholder(s) of an IBC do not appear on a public register. 6. Are the names of the directors and officers of an IBC on a public register?     The register of directors and officers must be filed at the Companies Registry. 7. Does an IBC require a registered agent in The Bahamas?     Yes, an IBC must have a registered office and registered agent in The Bahamas. 8. How much does it cost to maintain an IBC?     The typical annual fee to maintain an IBC is around $850 (authorised capital $50,000 or below) or $1500 (authorised capital more than $50,000). 9. How much does it cost to maintain a Company incorporated under the provisions of the Companies Act?     The typical annual fee to maintain a Company under the provisions of the Companies Act is around $950 (if Company more than 60% Bahamian owned) or $1600 (if Company less than 60% Bahamian owned).  Again, these fees can vary between corporate service providers. 10. How long does it take to liquidate an IBC?       A simple liquidation can be accomplished in approximately four (4) weeks.