Bahamas (BS)
An English-speaking Caribbean archipelago close to Florida, known for high-end tourism, no personal income tax, strong financial services, second-home communities, turquoise water and very high island living costs.
Capital: Nassau
Region: Americas
Language: English
Currency: BSD ($)
Cost of living: Expensive (index 75)
Emergency: 911
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Business Setup
Start a business or go freelance in Bahamas.
🧑💻 Freelancer / Self-Employed Guide
Steps to register:
- 1 1. Confirm your immigration status permits commercial activity in the Bahamas — Bahamian work permits are required for non-Bahamian nationals working for Bahamian businesses or providing services to local clients. The BEATS permit (Bahamas Extended Access Travel Stay) permits remote work for an overseas employer only — not local client work.
- 2 2. Apply for a Business Licence from the Department of Inland Revenue (bahamas.gov.bs) — required for all businesses operating in the Bahamas. Minimum fee: BSD 100 (scales with annual turnover). Apply online or at the Inland Revenue office.
- 3 3. Register your business or company name with the Registrar General's Department (bahamas.gov.bs) if operating as a company or partnership — company incorporation takes 2–4 weeks.
- 4 4. Register for VAT (Value Added Tax) with the Department of Inland Revenue if annual taxable supplies will exceed BSD 100,000. VAT rate: 10% on most goods and services. Register within 30 days of exceeding the threshold.
- 5 5. Register with the National Insurance Board (NIB — nib-bahamas.com) as an employer or self-employed person — mandatory for all workers. Register within 2 weeks of commencing employment or self-employment.
- 6 6. Open a business bank account at Commonwealth Bank, Scotiabank Bahamas, or Fidelity Bank — requires Business Licence, company incorporation documents, and satisfying bank KYC requirements.
- 7 7. Maintain proper financial records for annual Business Licence renewal and VAT filing (if registered). Business Licences must be renewed annually.
Tax registration
Department of Inland Revenue (DIR) at bahamas.gov.bs. Apply online or in person for your Business Licence and VAT registration. A Taxpayer Identification Number (TIN) is issued upon Business Licence approval. No income tax registration is required — the Bahamas has no personal or corporate income tax.
VAT threshold
BSD 100,000 annual taxable supplies triggers mandatory VAT registration at 10% (standard rate effective January 2022). Voluntary registration is permitted below this threshold. VAT returns filed monthly or quarterly via the DIR online portal. Hotels and short-term rentals may attract a higher composite rate including tourism taxes.
Invoicing
Invoices must include: business name, TIN or VAT registration number (if VAT-registered), client name, sequential invoice number, date, description of goods or services, amount in BSD or USD (BSD is pegged 1:1 to USD), and VAT amount shown separately (if applicable). VAT-registered businesses must issue compliant tax invoices within 21 days of supply. Retain all records for at least 6 years.
Social security
NIB (National Insurance Board) contributions are mandatory for all workers. Employee contribution: 4.65% of insurable wages. Employer contribution: 6.65% of insurable wages. Weekly insurable wage ceiling: BSD 810/week (approx. BSD 3,510/month — contributions are capped at this wage ceiling). Self-employed persons pay the combined rate of 8.8% of insurable wages. Register at nib-bahamas.com within 2 weeks of starting work or self-employment.
💡 The Bahamas has no income tax, capital gains tax, wealth tax or inheritance tax — the principal mandatory deduction from gross pay is NIB. The Bahamian dollar (BSD) is pegged 1:1 to the US dollar. The BEATS permit (12-month renewable) allows digital nomads and remote workers to live in the Bahamas while employed by a non-Bahamian employer — BEATS holders cannot provide services to or work for Bahamian clients without a separate work permit and Business Licence. The Bahamas is a signatory to OECD Common Reporting Standards (CRS) — financial accounts are reported to home-country tax authorities.
🏢 Business Structures
Sole Proprietor · Sole Proprietor with Business Licence
Sole Trader
No statutory minimum
Min. capital
1–3 weeks (Business Licence application via Department of Inland Revenue)
Setup time
Liability: Unlimited personal liability — personal assets not separated from business debts
Setup cost: BSD 100 minimum Business Licence fee (scales with annual turnover); trade name registration at Registrar General: BSD 50–100
Best for: Low-risk local service businesses, consultants and tradespeople where immigration status permits commercial activity. Simplest structure — Business Licence is the primary operating permit.
Partnership · General Partnership
General Partnership
No statutory minimum
Min. capital
2–4 weeks including Business Licence
Setup time
Liability: Partners can be jointly and severally personally liable for all partnership debts
Setup cost: BSD 200–500 (Registrar General registration + legal partnership agreement)
Best for: Small professional ventures between trusted partners. Simple structure but high personal liability — a Company Limited by Shares is preferred for liability protection in most cases.
Company Limited by Shares · Bahamian Company Limited by Shares
Private Limited Company
No high practical minimum; capital should support bank account and permit requirements
Min. capital
2–8 weeks including company registration, Business Licence and bank account
Setup time
Liability: Limited to company assets; shareholders protected from personal liability subject to director duties
Setup cost: BSD 500–2,000 (Registrar General incorporation fee + legal/corporate services)
Best for: Local operating businesses, property management companies and employers. Provides liability protection and is the standard structure for Bahamian businesses with multiple owners or employees.
International Business Company (IBC) · International Business Company
Offshore / International Business Company
Flexible — no statutory minimum
Min. capital
1–4 weeks plus bank account and KYC compliance
Setup time
Liability: Limited liability to company assets
Setup cost: BSD 750–2,000+ via a licensed registered agent (annual government fee plus agent fee)
Best for: International holding structures, investment vehicles and offshore activities. IBCs cannot conduct business within the Bahamas with Bahamian residents. Must have a licensed registered agent. Subject to OECD economic substance requirements — seek professional tax advice before using.
Branch / External Company · Foreign Company Registered to do Business in the Bahamas
Foreign Company Branch
Parent company dependent — no local minimum
Min. capital
3–10 weeks
Setup time
Liability: Parent company bears full liability for all Bahamian branch obligations
Setup cost: BSD 1,000–3,000 (Registrar General registration + legal costs for apostilled parent company documents)
Best for: Established overseas firms undertaking specific Bahamian projects or seeking a local presence without incorporating a separate entity. Must register as an External Company at the Registrar General and obtain a Business Licence.
Business Setup
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