The Bahamas are a chain of islands lying approximately 50 miles off the coast of Florida. The archipelago comprises about 100,000 square miles with more than 4,000 islands, islets and cays and enjoys a marine tropical climate characterised by persistent easterly trade winds. Nassau is the capital city where more than half of the population live.

The Bahamas is a constitutional Monarchy with a Parliamentary system of Government and retains the Queen as its head of state. The population of The Bahamas is in the region of 250,000.

Apart from tourism, the Banking and Finance sector is the second most important aspect of the Bahamian economy. The Bahamas is one of the largest offshore financial centers in the hemisphere with over 400 banks, trust companies and other licensed financial institutions. The Bahamas is renowned for its tax haven status and banking secrecy. Since the International Business Companies Act 1989 came into effect in 1990 The Bahamas has become one of the most popular areas to register an I.B.C.

INTERNATIONAL BUSINESS COMPANIES

Through its sister Company Mossack Fonseca & Co (UK) Limited RM provide a professional IBC Company Formation and administration service in The Bahamas and have a stock of ready-made Companies at their London office. IBC Companies offer a host of benefits to the offshore investor looking for a safe and cost effective haven for funds and assets. Some of the I.B.C benefits are:

TAXATION

IBC's are exempt from all local tax and stamp duty.

ASSET PROTECTION

Maximum security of assets includes the ability to transfer domicile.

CONFIDENTIALITY

There is no requirement for an IBC to file accounting information with the Registrar of Companies.

FLEXIBILITY

IBC's can re-acquire and re-issue shares for a consideration other than cash denominated in any currency.

APPLICATIONS

Applications include; investment, property holding, financial management, general trading and copyrighting or licensing.

Formation: Only two subscribers (which may be our nominees) may incorporate the IBC. Memorandum and Articles of Association are standard.

Incorporation

 We incorporate companies on the same date instructions are received, provided the requested name is available.

Shelf Companies: We have a number of already existing companies for sale. These have never traded or engaged in any transaction whatsoever.

Name

 Use of the following words is restricted: "Assurance," "Bank", "Building Society", "Chamber of Commerce", "Chartered", "Cooperative", "Imperial", "Insurance", "Municipal", "Royal", "Trust", or any word conveying a similar meaning. Endings such as "Limited", "Corporation", "Incorporated", "Societé Anonyme", or "Sociedad Anønima" or its abbreviations may be used.

Objects

Ultra vires doctrine is applicable.

Shareholders

There are no limitations as to number or nationality. We can assist clients with nominee shareholders.

Shares

Nominative, par or no par value shares, as desired.

Capital

No minimum or maximum authorised share capital. Our standard authorised share capital amounts to US$5,000.00.

Directors/Officers

There are no requirements in respect of nationality. It could be one or more. Companies may be directors. We can assist you with the provision of two nominee companies to serve as directors upon our receiving acceptable references from the relevant parties. We would like to point out that our nominee directors cannot act as authorised signatories of bank accounts.

Director's Meetings

Director's meetings may be held in any part of the world. Copy of minutes of same must be sent to the Registered Office. (*)

Shareholders' Meetings

Shareholders' meetings may be held in any part of the world. The quorum will depend on what is set forth in the Articles of Association.

Resolutions

No special formalities need to be followed.

Company Seal

The Company Seal is mandatory. An imprint of the seal must be sent to the Registered Office.

Accounting

There is no need to file annual accounts or tax returns.

Auditing

Not applicable.

Registered Agent/Registered Office

There is no special qualification in respect of the Registered Agent. Registered Office should be in The Bahamas.

Taxation

Full exemption from taxation.

Note: I B C COMPANIES MAY NOT

1. Carry on Business with persons who are resident in the Bahamas

2. Own real estate in the Bahamas

3. Conduct Banking or Insurance Business.

Whilst every precaution has been taken to check the accuracy of the information contained in this page, no responsibility can be taken for any inaccuracies contained herein. Please also note that we are not tax advisors. Professional tax advice should always be taken if in doubt.

Copyright © The Raymond Morris Group Limited. 1997. All rights reserved.