As of 1st January 2015, The Bahamas implemented a Value Added Tax on many goods and services. The new Value Added Tax or VAT is a consumption tax on goods and services which affects individuals as well as businesses. Both Bahamian residents and travelers to The Bahamas should be aware of how the ...
Blog Posts
The Role of Precedent in the Common Law System
The Bahamas follows the British common law system, which uses precedent as an important tool for making legal decisions. “Precedent” as used by courts and attorneys refers to following a court's decision in an earlier court case because that earlier case is similar to the current case that the co...
When Is a Person Considered a Company’s Agent?
A company's agent can act for the company and in some cases legally bind it. “Agency” is a legal term that describes the relationship between a principal (a person or business) who engages an agent (other person or business) to act for the principal. For example, a company acting as a principal m...
The International Persons Landholding Act
The International Persons Landholding Act describes how non-Bahamians and permanent residents may acquire and hold property in The Bahamas. As used in the Act, the term “non-Bahamian” means a person who is not a citizen of The Bahamas, a company incorporated in The Bahamas with any shares or capi...
Can My Trust Have a Trust Protector?
Many trusts provide for the appointment of a trust protector. A trust protector carries out strategic and administrative duties not held by the other traditional trust roles. Unlike the traditional trust roles (settlor, trustee, and beneficiary), the trust protector role adds flexibility and adap...
Conflicts of Interest for Company Directors in The Bahamas
Company directors in The Bahamas may have conflicts of interest that influence their decisions relating to their company. The term “conflict of interest” refers to a situation in which a director may derive a personal benefit, or a benefit to another company with which the director is associated,...
Is There a Minimum Wage in The Bahamas?
Like many other nations, The Bahamas has a minimum wage for employees. The statutory minimum wage was enacted in 2002 as $150 per week or $30 per day or $4 per hour. In 2015, the government raised the minimum wage to $210 per week or $42 per day or $5.25 per hour. Minimum Wages (Increase in Minim...
De Facto and Shadow Directors of Companies
In addition to directors appointed under the law, companies may have de facto and shadow directors. Someone who acts as a director but who has not been validly appointed is called a de facto director. In re Canadian Land Reclaiming and Colonising Co.: Coventry and Dixon's Case(1880) 14 Ch. D. 660...
Bahamian Arbitration: What Is It and How Do I Use It?
Bahamians' interest in arbitration as a method for resolving disputes has grownin the past few years. Arbitration is an alternative method of dispute resolution outside the court system. Instead of filing a lawsuit and appearing in court before a judge, people who choose to arbitrate present thei...
Requirements to Become an Insurance Manager
Insurance managers oversee the administrative requirements of running an insurance company or captive in The Bahamas. They manage underwriting, make sure that audits are completed, see that the company makes required annual reports, and ensure that the company is in compliance with the law. Under...
Protecting Your Business After a Natural Disaster
Following the string of hurricanes that affected the area in 2016 and 2017, Bahamian businesses should have a recovery plan for their businesses after a natural disaster. Here are a few legal and practical suggestions for recovering from a natural disaster. Consult Your Insurance Policies D...
Bahamian Private Trust Companies
Bahamian Private Trust Companies act as trustee for a particular trust or group of trusts. These trusts usually are formed by and benefit a wealthy family. Families have begun using Private Trust Companies to structure estate planning and inheritances. The Private Trust Companies balance families...
Mediation in Complex, Multiple-Party Disputes
Mediation works very well in many complex, multiple-party disputes to resolve competing claims and priorities among the parties. Since mediation is by nature more informal than court proceedings, the parties have greater opportunities to craft creative solutions for their problems and to confront...
Captive Insurance: The Basics
Captive insurance refers to the situation where a parent company or a group of companies creates a licensed insurance company to insure itself. If you are not familiar with captive insurance, this may sound strange, but actually it is a legal and effective means of gaining tax benefits, asset pro...
Unsecured Creditors’ Order of Priority for Claims in Insolvency Proceedings
In insolvency proceedings in The Bahamas, different unsecured creditors may recover different amounts (or nothing at all) to satisfy debts according to an order of priority. Creditors' claims against the insolvent company's assets are ranked pari passu (meaning equally). Despite the pari passu ru...
Is Investor-State Dispute Settlement Available in The Bahamas?
Investor-state dispute settlement allows aggrieved foreign investors to more readily resolve disputes with the government in the country in which the investment was made. This article describes how it works and how The Bahamas uses it. When investors choose investments in countries foreign to th...
Protecting Assets Against Judgment Creditors – What Not To Do
Protecting your assets against judgment creditors requires professional advice to set up irrevocable, discretionary trusts, gift money to others, or use other common asset protection techniques. You should understand that completely sealing off assets from creditor access often is difficult if yo...
Regulatory Hearings Before the Securities Commissions of The Bahamas: What You Need to Know
The Securities Commission of The Bahamas may conduct regulatory hearings regarding the conduct of people and businesses falling within the ambit of the Investment Funds Act. The reasons for conducting a regulatory hearing and the powers of the Securities Commission to take action as a result of s...
Operating a Subsidiary or Branch Office in The Bahamas
Are you planning to establish a subsidiary or a branch office of your company in The Bahamas? Learn about the local laws as you set up your business, including how to register, fees to pay, operating requirements, and more. Probably the simplest way to get started if your business is incorporate...
Which Types of Security Interests in Property Are Recognized in The Bahamas?
The Bahamas recognizes several different types of security interests in property. Learning about the different security interests can be helpful for businesspeople, creditors, investors, and even people taking out home or car loans. Essentially, security interests in property give one person (t...
Reporting Obligations of Investment Fund Administrators
Investment funds and their administrators have obligations to report certain information to the Securities Commission of The Bahamas under the Investment Funds Act, 2003. Financial reporting must occur on an annual basis, while reporting of problems with the investment fund must occur as soon a...
The Bahamian Executive Entity and Why to Use It
Executive entities are a type of business organization that can be used as part of private wealth management and development. These entities carry out “executive functions,” defined in the Executive Entities Act, 2011 as “any powers and duties of an executive, administrative, supervisory, fiduc...
What is a SMART Fund?
SMART funds are a type of investment fund with flexible structures and reporting requirements. “SMART” stands for Specific Mandate Alternative Regulatory Test, meaning that each of several “templates” used for SMART funds is designed with a specific purpose in mind, regulation of the fund is ad...
How the Central Bank of The Bahamas Regulates Corporate Governance for its Licencees
The Central Bank of The Bahamas regulates banks and trust companies operating in and from The Bahamas by directing them to follow certain licensing, supervisory, and reporting policies. This article summarizes some of the key policies in the Central Bank's Corporate Governance Guidelines and expl...
Notarization, Legalization, or Apostille: What Is the Difference?
In The Bahamas, legal documents may be authenticated by several different methods depending on your use for the authenticated document: notarization, legalization, or apostille. This article explains what these three methods are and the differences between them. Notarization Notarization refers...