The Bahamas: Caribbean Financial Center with Privacy Tradition

The Bahamas, an archipelago of 700 islands near Florida's coast, has built a substantial financial services sector alongside its tourism industry. The country's proximity to the United States and established company registration framework make it an accessible choice for business setup in a tax-neutral environment.

Living in The Bahamas

With a population of 400,000, predominantly on New Providence (Nassau) and Grand Bahama, The Bahamas offers island living with modern amenities. English is the official language. The subtropical climate provides warm temperatures year-round, though hurricane season brings annual risk.

Healthcare is adequate for routine care, with Princess Margaret Hospital in Nassau serving as the main facility. Serious cases often require medical evacuation to Miami. The cost of living is high due to import dependence, though no income tax partially offsets this.

Safety varies by location, with Nassau experiencing higher crime rates than the Family Islands. The lifestyle appeals to those comfortable with island living who value proximity to the United States.

Doing Business in The Bahamas

The Bahamas imposes no corporate income tax, personal income tax, capital gains tax, or inheritance tax. Revenue comes primarily from import duties, VAT at 10%, and license fees. This tax-neutral status has historically attracted wealth management, insurance, and holding company structures.

The Central Bank of The Bahamas regulates financial services. The country maintains appropriate international standards while preserving legitimate privacy for lawful structures. The US dollar circulates alongside the Bahamian dollar at parity.

Company Formation and Registration

Company registration is efficient through the Registrar General. International Business Companies (IBCs) offer simple incorporation with minimal disclosure requirements. Standard IBCs require minimum one shareholder and one director, who may be the same person.

Company formation typically completes within 1-2 business days. No minimum capital requirement applies to IBCs. Bearer shares are no longer permitted. Annual requirements include license fee payment and registered agent maintenance. Nominee services remain available.

Crypto License Opportunities

The Bahamas enacted the Digital Assets and Registered Exchanges Act, establishing one of the Caribbean's more developed crypto license frameworks. The Securities Commission of The Bahamas oversees digital asset businesses.

FTX's high-profile collapse brought scrutiny to the jurisdiction, prompting regulatory enhancement. The framework now emphasizes compliance and governance, though the jurisdiction continues to attract legitimate digital asset businesses seeking regulated status.

Gambling License Framework

The Gaming Board of The Bahamas regulates casinos, primarily in resort properties. The framework focuses on land-based gaming integrated with tourism. Online gambling license availability is limited, with the jurisdiction not positioning itself as an internet gaming hub.

Operators seeking online gambling licenses typically look to other jurisdictions with more developed remote gaming frameworks.

Considerations

Banking has become increasingly challenging, with international correspondent relationships under pressure. Some offshore structures face difficulty opening accounts both locally and internationally. Due diligence requirements have increased substantially.

The proximity to the United States brings both opportunity and regulatory attention. Professional services are well-developed for the financial sector but concentrated in Nassau. Operational costs on the islands are substantial.

The Bahamas suits high-net-worth individuals and established financial businesses with legitimate purposes seeking a tax-neutral base near the United States for their business setup.