Forming a company in Bahamas is commendable. Investors are left with room to decide on whether to form the company through incorporation or through branch operation.
Bahamas has repealed the obsolete Companies Act of 1866 and ushered a new dawn in the business sector with the introduction of a new companies Act which became operational from August 1992. The new law is business friendly and has created more room for companies to thrive.
You can now incorporate your company with as little as two people as opposed to the previous requirements which put the number at five.
Investors have a reduced workload in terms of paper requirements and will only require the inclusion of a standard form of Articles of Association, which will be needed for mere reference.
And in an elaborate strategy to safeguard investments by ordinary people, companies including their shareholders are required to maintain a higher degree of transparency and accountability. This has resulted in higher returns and a remarkable growth in the economy.
Company’s that are struck off for one reason or another can reincorporate again without being subjected to the extraneous legal process at the Supreme Court of Bahamas.
However, investors will be required to file a Memorandum of Association with the Registrar General prior to the formation of a company. This can be filed jointly with the Articles of Association but new companies are left with the discretion to either file it immediately or within six months of incorporation. The Articles of Association must be signed and certified by another person. As a general rule, the Memorandum is also signed by two people and witnessed by a third party.
The law stipulates that individuals who append their signatures must declare ownership of the company through one share. Also, the law allows for the participation of non resident in the process as a way of ensuring that the new company has binding exchange control permission.
The number of bona fide members must be certified by counsel and attorney in the form of a signed declaration and submitted together with the Memorandum. The investors must also specify the level at which the liability of shareholders or members is limited.
In the event that the new company is a product of merger with an existing company or companies in Bahamas, incorporators will be required to submit articles of merger or consolidation to the Registrar General. However the law prohibits a company to merge with a subsidiary. Nevertheless, the affected parent company is required to submit articles of merger to the Registrar General. Also regulated under this Act are companies undergoing any form of reorganization or reconstruction which are required by the law to file articles of arrangement with eth Registrar General.
Importantly, incase you form a private company, this status will be retained in the register of Registrar General’s Office until such a time when you want to revert to public a company. Public Companies have a wider discretion in terms of ownership and its shares are open for public distribution.
CCLOGIC.COM offer services to incorporate in the Bahamas, please visit our site : Bahamas Company Formation for more information.
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