When starting a new business, you have many issues to think about in order to make your business as successful as possible. For example, consider how to structure and form your business, your banking needs, and any taxes the business may owe.
People who start new businesses should always consider which type of structure to use. In The Bahamas, you could form a partnership, a Bahamian company, or an international business company (IBC), among other options. A company can have limited liability or unlimited liability. Moreover, you can use techniques such as forming segregated account companies to protect company assets from creditors.
Once you choose an appropriate structure, you need to follow legal formalities to create the business. You may need to have a partnership agreement or articles of incorporation prepared by a lawyer, and a lawyer will need to sign your statutory declaration and affidavit. Depending on the type of business, you and your business partners may need to hold regular meetings or complete accountings of the business's financial dealings. Also, you need a business licence to operate in The Bahamas, as well as other licences for certain industries.
New businesses should think about their banking needs as they get started making money. For example, some businesses need loans or mortgages to get started. Banks may offer lending services as well as checking and savings accounts that are specifically tailored to business needs. Some kinds of businesses may need investing help as well. You might want to set up a retirement fund for employees or have cash on hand that you want to grow.
Every business should investigate whether they need to pay taxes. While The Bahamas does not have a “corporate tax” on any businesses, you might need to pay national insurance contributions if you have employees. You also might owe value-added tax. Businesses should plan ahead so that they have cash on hand to pay taxes without going into debt.
As always, you should seek legal advice for your business to provide peace of mind that you are following the law.
To find out more about business formation in The Bahamas, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.
The hiring of an attorney is an important decision that should not be based solely upon the information contained in this website. This website is designed for general information purposes only and the information provided should not be construed to be formal legal advice nor the formation of an attorney/client relationship.