The Bahamas
The Bahamas comprise over 700 islands and 2,000 cays which are scattered over a 750 mile stretch of the Caribbean from the south east of Florida to just north of Haiti. The Population estimate for The Bahamas for 2002 was 300529 and almost 60% of the population lives on New Providence, which includes the capital city of Nassau. The Islands are a former British colony which obtained independence in 1973, the Government is very stable although it has tended to give into certain OECD and FATF demands which have compromised confidentiality, as far as respectability and infrastructure are concerned, the Islands still have a great deal to offer.
The islands operate under a British based legal system. The
1990 International Business Companies Acts, made Bahamian
legislation quite similar to British Virgin Islands Company
law, but the International Business Companies Act 2000 has
introduced some significant differences.
To an extent the Bahamas have given way to the demands of the OECD, although this is clearly undesirable in some ways it may have advantages in making the Bahamas more desirable to certain types of client's e.g. non-tax paying ex-patriates etc. The main advantages offered by a Bahamian company are zero Taxes and no tax treaties with any other countries. There are mutual assistance treaties with the US, Canada and the UK which include exchange of information provisions; but fiscal information is excluded. Disclosure is limited to criminal matters, and tax evasion is not a crime in the Bahamas. The Bahamian statute Reciprocal Enforcement of Judgements Act 1924 allows Commonwealth judgements to be enforced in the Bahamas, but revenue matters are strictly excluded. When these points are combined with good banking and communications and the close proximity to the US east coast, the Bahamas are still a jurisdiction to be considered, providing your personal tax position is appropriate. If you are keen on forming a Bahamian company, give us a call first to check its suitability because the changes which were introduced in 2001 have reduced its benefits for many clients.
Three
factors might be of concern to some clients, these are:
- Bearer
shares are no longer permitted, all shares must now be registered
shares;
- The
Register of Directors is now on public record;
- For
Americans exchange of information agreements with the US
are potentially worrying.
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