Earning Bahamian currency
The Business License Act in the Bahamas provides the laws and statutes governing the process of starting a business within the Bahamas, and the necessary fees associated with obtaining a license. Any individual wanting to start a business within the Bahamas will need a business license, or risk being convicted of a crime under the Bahamas Business License Act.
An Introduction to the Bahamas
The Bahamas is a country located between the United States and Cuba, and is made up of at least 30 islands. The chief island is called New Providence and it has the capital city Nassau. The main economy of the Commonwealth of the Bahamas is related to banking and tourism. Since the country has had a stable government and economy as compared to other Caribbean nations, establishing a business under the Business License Act in the Bahamas can be a hassle-free process.
The History of the Business License Act
Before the Business License Act was created, the only laws governing the establishment of a business within the Bahamas was found in the Companies Act of 1866 and the Foreign Companies Act 1891. The laws within these articles of legislation were suitable at the time they were drafted; however, by the early 1980s to 1990s the prosperity of the Bahamas increased as more North American and European foreigner investors wanted to establish offshore businesses in this country. Therefore, the statutes located within these were combined and ratified into the Companies Act of 1992. This also included updates to information on the Business License Act.
The Business License Act In The Bahamas
In the Bahamas, the Business License Act is used to provide information on the criteria needed for both Bahamian citizens and foreign nationals to obtain a business license. Any individual who opens a business without the necessary business license can be convicted of an offense under the Bahamas Business License Act.
Submitting a Business License Application
In general, someone residing within the capital city of Nassau must submit an application to the Ministry of Finance for approval of a business license. Other Bahamian residents not residing in the capital city of Nassau must submit an application to the District Board of the island the person resides on. Foreign nationals will need legal representation to prepare the Bahamas business license application, and this will be submitted on the island the foreign national plans to establish a business.
Doing Business Under the Business License Act
Under these statutes within the Bahamas Business License Act, an annual fee must be paid to the government of the Bahamas by April 30th. Unlike a set business license fee, the license fee is paid at a percentage of the gross profit. Therefore, a business with a profit of less than $50,000 BSD will not pay a business license fee, whereas a very large business with a very high profit over $280,000 BSD can expect to pay whichever is higher of at least 1 prcent of the company profit or $500,000 BSD. To encourage formation of jobs, companies can reduce their business license fees by 3 to 5 percent by hiring new employees throughout the year.
