A number
of offshore jurisdictions exist to serve the needs of those individuals
seeking to form a tax exempt company structure.
As we mentioned earlier, each jurisiction
may have some positive attributes and detractions as well. One positive
about the
Bahamas is that the language of the country
is English. If someone is interested in using an offshore company
to actually operate
a business or conduct business with another
English speaking country, then the benefits are obvious. In addition,
the Bahamas
has a well devloped and modern banking
system. Since the Bahamas is a English speaking, and therefore common
law country,
a trust certainly can formed to complement
an IBC. An offshore incorporated company from the Bahamas or The
Bahamas IBC
is easy to form and simple to operate.
In addition, the Bahamas offers a long standing status as an English speaking
tax haven
jurisdiction.
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Language
– English is the official language
of The Bahamas and therefore all legal documents are drafted in English.
For some individuals, this in and of itself
is an important point when looking for a jurisdiction.
Name of the Company
- Any name can be selected that is
of course not currently in use or registered to another company.
The words “Limited”, “Corporation”, “Societe
Anonyme”, “Gesellschaft Mit Beschrankter Haftung”, “Incorporated” or the
related
abbreviations for above terms may be used
to indicate that the Bahamas IBC is in fact an incorporated entity.
However, no company name or title can contain
the terms “Assurance”, “Bank”, “Building Society”, “Chamber of Commerce”,
“Chartered”, “Cooperative”, “Imperial”,
“Insurance”, “Royal”, “Municipal” or “Trust”.
Directors
– One unique aspect of the Bahamas
IBC is that only one natural person or juridical person is required for
a directors
position. Unlike some other jurisdictions
that may require three persons to be named as directors, the Bahamas require
that
there be only one. Of course, it
is permitted to have as many directors as may be desired. The names
of directors or officers
are not public record.
Shares
– Shares may be issued in bearer or
registered form. Regardless of the method desired, there is no registration
process with respect to shares nor is
there disclosure in the public record of the company shareholders.
Bank Accounts
and Banking Secrecy -
Many clients may wish to establish
a bank account in the name of their Bahamas IBC
and of course this can be easily accomplished.
Like most modern banking jurisdictions, the client will be required to
submit a
photocopy of their passport and a banking
reference.
One important point regarding Bahamian
banking secrecy is that banking institutions are prohibited from divulging
a clients
or accountholders information to a third
party without the express consent of the account holder or under a Bahamian
court order.
However, banking institutions are permitted
to divulge that a particular client or company does in fact have an account
with
that bank. While the bank cannot,
under Bahamian law, divulge details or account balances, they certainly
can divulge who
their account holders are. This
is an important difference between what banking secrecy actually means
in the Bahamas in
comparison to other jurisdictions.
Other
Key Points regarding the Bahamas IBC
While we generally have some
positive things to say about the Bahamas IBC, in reality, it may not be
for everyone.
One key point to be highlighted
regarding the Bahamas IBC legislation, is that the IBC structure may not
engage in a
business enterprise in the
Bahamas. It also may not own real estate in the Bahamas.
The Bahamas IBC does enjoy
the right to earn interest from local bank accounts ~ tax free. It
also has a special exemption
from Bahamas taxes ~ but
only for twenty years. After twenty years are up, the all around
tax exempt status disappears.
So, if your time horizon
is very long term, the Bahamas may not be the place.
The fact that only one director
is required is a positive. In addition, since the director or directors
are not disclosed in the
public record, this may
also be more appealing for those clients seeking true privacy.
For additional assistance
with a Bahamas Incorporation or for a consultation as to which jurisdiction
may be best for you,
please contact us.
For
Additional Information Regarding the Use of Trusts and other vehicles for
asset protection, please send us an Email.