Your work in The Bahamas all culminates in one necessity — a subsidiary. You need a registered entity to stay compliant, hire employees, and work in a new country. Unfortunately, your entity can take weeks or months to create, which will set back your time frame for forming other important business relationships and growing your company.
Globalization Partners understands this unique challenge, and we offer Bahamas subsidiary outsourcing to help you work faster and smarter. We’ll even manage the risk for you as the Employer of Record. No more slaving over learning The Bahamas’ subsidiary laws. No long wait times. No additional stress.
How to Set Up a Bahamas Subsidiary
You can’t set up your Bahamas subsidiary until you look at several factors that impact the incorporation process. Start by finding the right location for your company in a particular city or region within The Bahamas. Different locations within the country can have different Bahamas subsidiary laws, just like states in the U.S. have their own regulations. Working with a consultant, lawyer, or accountant can ensure you find a place friendly for incorporation.
Next, you need to examine your company’s goals and planned activities for The Bahamas. While you can incorporate as one of several entities, you’ll find that many companies decide to use the limited liability company (LLC) structure. The LLC will mean that each of your shareholders is limited in liability by how much they contribute. Plus, your parent company will have limited liability from the subsidiary, meaning it will be protected from litigation and fines.
The steps to set up your Bahamas subsidiary as an LLC include:
- Obtaining approval from The Bahamas Investment Authority (BIA)
- Submitting a comprehensive project proposal
- Paying the minimum capital investment of 50,000 Bahamian dollars
- Registering your business with The Bahamas’ Registrar General Department
- Providing the Registrar with the company name, jurisdiction in which it was incorporated, date of incorporation, and more
- Paying the annual fee each year after you register
- And more
Bahamas Subsidiary Laws
The Bahamas subsidiary laws you must follow change depending on what type of entity you choose and where you incorporate. LLCs usually owe 50,000 Bahamian dollars, but there is no statutory requirement to pay the capital fully or partly on incorporation. Your company will need at least one shareholder who can be a natural or legal person.
You’ll need at least one director who can be either a natural person or a legal entity. Although it’s optional to appoint a secretary, many companies do. This secretary can be an individual or a corporation, resident, or non-resident.
Benefits of Setting Up a Bahamas Subsidiary
Completing the subsidiary setup process means you get to start working in The Bahamas. You won’t have to worry about your parent company incurring any liability, and you can also run your subsidiary using a different process than what your parent company uses.
Although these are great benefits, your company won’t receive any until months after you learn how to set up a Bahamas subsidiary. Globalization Partners offers Bahamas subsidiary outsourcing as a quick alternative. You won’t have to establish your own subsidiary because you can use our existing option. We’ll also handle compliance with The Bahamas subsidiary laws, hire employees, manage payroll, and provide compensation and benefits on behalf of your company.
Other Important Considerations
The biggest thing you’ll need for a successful expansion is knowledge of The Bahamas’ subsidiary laws. If you don’t already have an expert in global compliance working for your company, we recommend finding a consultant or third-party expert who can make sure you stay compliant.
It’s also a good idea to work with your finance department before setting up your subsidiary. They can advise on all expenses involved in the process and make sure you have enough funds for each part. Once you understand the financial and time commitments involved, work with your other executives to discuss how to split up tasks and divide your time.
Let Globalization Partners Help With Your Expansion
Globalization Partners will help your company succeed in expanding to The Bahamas and across the globe. Contact us today to learn more about Bahamas subsidiary outsourcing and our global expansion solution.