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International Business Companies Powers and Restrictions in the Bahamas |
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Over thirty six thousand IBCs (International Business Company) have been set up in The Bahamas since 1990. An IBC normally exists as a private company limited by shares, and is the most widely used means of carrying out offshore ventures. An IBC in the Bahamas is permitted to carry out lawful dealings without having to state in its Memorandum a specific purpose for the company. It is allowed to hold board meetings anywhere: the members don't have to reside locally and may communicate with each other through electronic means.
The International Business Companies Acts of 1989, 2001, with amendments in 1994 and 2004, are meant to provide a means through which a person or a group may conduct business under the protection of a corporate entity that also covers anything an individual may do. Under the Act, they are allowed to pursue foreign exchange commerce without the restrictions imposed by the Bahamian Exchange Control. An IBC is allowed to issue a multitude of types of shares (except for bearer shares) under any currency, as long as a share register is maintained. An IBC can purchase or redeem its own shares. It is also able to guarantee liabilities and obligations through the mortgaging or pledging of its assets.
A company's IBC status is dependent on certain conditions. It must keep a share register and copies of minutes of meeting and resolutions in its Bahamian office. It also cannot provide business management services or own registered facilities for the use of companies incorporated in the Bahamas. It can't own any real property, and can only lease office properties. It can't engage in banking or insurance. It can't transact with people living in the Bahamas but this does not include the hiring of professionals, nor does it include creating or keeping deposits with someone who is carrying on business in the Bahamas.
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