What does it take to do business in The Bahamas?

Last week we looked at the being able to start up a business in 10 days in Grand Bahama/The Bahamas, but we were talking about Bahamians.

So, what does it take for a foreigner to set up a business?

Here is what I found from the World Bank - International Finance Corporation:

1	Search for a Company name and reserve the proposed name online  The online name search system has been in place since 2004 and it is estimated that less than 50% of all applicants use it while the rest still request the search in person. Since the majority of people cannot search it, it is mainly done by lawyers and service providers who include the name fees in their fees. The name reservation expires after 90 days.	Less than one day (online procedure)	no charge (included in procedure 2)
2	A lawyer prepares and notarizes the company documents (memorandum and articles of association).  Legally, only the memorandum has to be filed at the moment of the incorporation. Standard Articles of Association are available and the memorandum has to be a statutory declaration. Therefore, the most common scenario is to prepare both. Since 2001, the Bahamas has issued many provisions on anti-money laundering and since then the information requested from the client has increased. Usually, a client has to provide the law firm with a financial and a character reference as well as a copy of his or her passport. Affidavit must be executed by witness to subscribers to Memorandum and Articles of Association and a Statutory Declaration must be executed by Notary Public that has notarized the affidavit before another Notary Public. Lawyer should be a notary (at the same time). The memorandum and articles of association can also be prepared by a licensee under the Financial and Corporate Services Providers Act. However, notarization of the Statutory Declaration is still required.  The memorandum and articles of association can also be prepared by a licensee under the Financial and Corporate Services Providers Act. However, notarization of the Statutory Declaration is still required.	1-2 days	Usually about B$610 = B$100 to public treasury +B$510 register of company
3	Stamp duty on the Memorandum paid to the Public Treasury  The fees includes $100 stamp duty is payable on the first $5,000 authorized capital of the company and $5 for every additional $1,000 authorized capital.	1 day	USD 100 stamp duty is payable on the first USD 5,000 authorized capital of the company and USD 5 for every additional USD 1,000 authorized capital
4	File the company documents at the Companies Registry  The registration is usually done by the lawyer. The company is incorporated on the date that the incorporation documents are submitted to the Companies Registry. A registration fee of $330 is paid at the Registrar General’s office ($300 for the Memorandum and $30 for the Articles of Association). Once the final incorporation certificate is ready, an additional fee of $4 per page is charged to obtain a certified copy of the Memorandum & Articles of Association.	10 days	USD 300 for the Memorandum + USD 30 for the Articles of Association + USD 4 (per page) for a copy of the Memorandum and the Articles.
5	Obtain the National Insurance Number for the Company from the National Insurance Board  The National Insurance Number is a requirement to obtain business license. According to the National Insurance Act, every employer has to have a national insurance employer’s number. This could be obtained at no cost and it can be done in a day (by mail or in person). The document required for registration is a certificate of incorporation. Employer also registers the employees if they have not been registered already. Where an employee is being registered with the National Insurance Board they must provide a copy of a document that verifies their birth, i.e. a birth certificate, passport or affidavit.	1 day	no charge
6	Register the company for a business license at the Valuation/Business License Department of the Ministry of Finance.  Under the Business License Act all persons carrying on business in The Bahamas must have a business license before operations commence, whether or not the business is owned by Bahamians. Since the coming into force of the Business License Act, 2010 there is no longer a requirement to separately register the trading name of the company. The requested trading name is indicated on the Business Registration Form. When the Business Registration Form is submitted it must be accompanied by: (i) proof of citizenship of the beneficial owners of the company; (ii) a copy of the Certificate of Incorporation of the company; (iii) a copy of the Certificate of Registration from the National Insurance Board; (iv) a copy of the lease for the property; (v) a copy of the Certificate of Sanitation from the Department of Environmental Health Services; and (vi) the licensing fee of $100.	10 days	USD 100 (flat fee)
* 7	Company Seal  A proof of seal has to be provided at the time of filing the first annual statement. Under section 26 of the Companies Act, 1992 every company must have a common seal. Seals are locally manufactured and can usually be obtained within 2-3 business days at a cost of $30-$35	2-3 days (simultaneous with previous procedure)	USD 35

* Takes place simultaneously with another procedure.

I like this chart because it also gives you the amount the time and the amount of money. But this really only takes into account The Bahamas.

In Freeport, Grand Bahama there is a vetting process that can take a bit longer as the licensing goes through the Grand Bahama Port Authority who has their own time schedule on getting back to the investor. However long it takes the vetting of persons involved in the business will determine the length of time. And if all goes well, there is still the further registration with the Bahamas Government in the Ministry of Finance to register the name of the company.

The order for the business is not necessarily in the order set out by the World Bank as it would be fruitless to be denied and have National Insurance.

How important is it for us to streamline this process to be able to bring business in?  When there is such a demand.

Things to think about as we await the "Super hero's" to take us out of the doldrums in Freeport.

What are you doing for you today?