What steps does a new business in The Bahamas follow to obtain a Business Licence?

Choose the legal structure, register a Trade Name or company through the Registrar General’s Department and CARS, obtain required agency approvals, and submit the online Business Licence application to the Department of Inland Revenue. A Trade Name costs $25, a new Business Licence costs $100, and a complete application normally takes about seven working days.

Can a non-Bahamian entrepreneur start any type of business in The Bahamas?

No. A non-Bahamian entrepreneur generally needs Bahamas Investment Authority approval before applying for a Business Licence, and access depends on the sector. Tourism, maritime services, information technology, e-commerce, and selected processing activities receive priority, while several domestic retail, real-estate, media, security, transport, beauty, construction, fishing, and service activities are reserved mainly for Bahamians.

When must a business in The Bahamas register for VAT and National Insurance?

VAT registration is generally required when taxable activity exceeds $100,000 in the previous or coming 12 months, with the application usually due within 14 days after the obligation arises. Self-employed workers register directly with the National Insurance Board and currently contribute 10.3% of reasonable projected insurable earnings up to $810 per week, with payment due by the 15th of the following month.

How does a business in The Bahamas end its Business Licence and company obligations?

The business reports inactivation or cessation online within 14 days and no later than 31 December of the licence year, after paying outstanding taxes and fees. This ends the Business Licence record but does not dissolve a company; company closure requires a separate Registrar General’s Department winding-up, dissolution, or strike-off process.

Business in Bahamas

Entrepreneurship in The Bahamas covers starting, operating, developing, transferring, and closing a self-employed activity or business. Most business activity requires a Business Licence, while the legal form, location, nationality, sector, turnover, and staff affect the required registrations and approvals. Formal businesses can use structures such as sole proprietorships, partnerships, companies, limited liability partnerships, limited liability companies, or home-based businesses.

Tip

Treat the Business Licence as the central operating checkpoint for your business in The Bahamas. Confirm your ownership status, sector, location, legal structure, turnover expectations, and staffing needs before committing money, because each can change the approvals, costs, and ongoing duties that apply.

byShanice&Andre

A new business in The Bahamas usually begins by choosing a legal structure and registering either a Trade Name or a company with the Registrar General’s Department through CARS. A registered company name removes the separate Trade Name step. A Trade Name costs $25, and email confirmation usually arrives within about 24 hours. After registration, the business obtains any required agency approvals and applies online for a Business Licence through the Department of Inland Revenue. The Business Licence application should be submitted within 90 days of registration; otherwise, the name can be removed from the Registrar General’s database. Normal processing for a complete application is about seven working days, and a new Business Licence costs $100. A Business Licence is generally required for every person carrying on business activity in The Bahamas. The available structures include sole proprietorships, partnerships, privately or publicly trading companies, limited liability partnerships, limited liability companies, and home-based businesses. A home-based business requires permitted residential zoning and approval from the Department of Physical Planning. Industrial activity is not permitted in a residential zone. On Family Islands, the Local Administrator commonly handles local business matters, while Abaco, Exuma, and Grand Bahama also have online arrangements for Business Licence applications. Non-Bahamian entrepreneurs need approval from the Bahamas Investment Authority before applying for a Business Licence. The proposal normally describes the venture, location, expected start, staffing and work-permit needs, capital, financing, and environmental or economic effects. Foreign access depends on the sector. Priority areas include tourism and resorts, marinas, aircraft and maritime services, information technology, data processing, e-commerce, agro-processing, food processing, and alternative energy. Several activities are reserved mainly for Bahamians, including wholesale and retail, domestic real estate and property management, domestic media, advertising and public relations, security, most construction, beauty services, public transportation, and certain fishing and service activities. A foreign-owned business and a Bahamian-owned business therefore do not have identical access. Each island and each specific business location requires its own Business Licence, and each branch needs a separate licence. The business can submit turnover information on a consolidated basis. Licences renew annually, expire on 31 December, and normally have a grace period until 31 January. Current Department of Inland Revenue rates are $100 for turnover up to $50,000, 0.50% for turnover above $50,000 up to $500,000, 0.75% above $500,000 up to $5 million, and 1.25% above $5 million. Late payment adds 10% tax, followed after more than 30 days by an additional 5% per year. A late renewal filing costs $100. Businesses with turnover above $250,000 need an accountant’s report, while businesses from $5 million need audited financial statements prepared by a BICA member. The business must also maintain records, report turnover, and obtain a Tax Identification Number. A Tax Compliance Certificate may be required for work with the Government or a public body. It is valid for six months and checks compliance across the Department of Inland Revenue, Customs, Immigration, the National Insurance Board, real property tax, road traffic obligations, and VAT. VAT registration is required when taxable activity exceeds $100,000 in the previous or coming 12 months, with the application generally due within 14 days after the obligation arises. Voluntary registration may be available to a business with a fixed place, taxable activity, proper records, and reliable returns. The current standard VAT rate is 10%, with a 0% zero-rated category. A business that is not VAT-registered may not charge or collect VAT and must follow the applicable invoicing and display rules once registered. Self-employed workers register and contribute directly to the National Insurance Board. The current self-employed contribution rate is 10.3% from 1 July 2024, applied to reasonable projected insurable earnings up to a ceiling of $810 per week. Payment is due monthly by the 15th of the following month. Access to benefits depends on contributions, and the NIB leaflet states that self-employed workers do not receive unemployment benefits. A business with employees has a separate employer-registration duty, generally within 10 days; employment-law requirements are a separate subject. The Small Business Development Centre, also known as SBDC or Access Accelerator, has operated since 2018 and serves MSMEs across the islands. It provides advice, incubation, mentoring, training, advocacy, and connections to capital, but it is not itself a direct lender. Funding partners may offer programmes such as guaranteed loans, equity, and matching grants. Current programme information has cited amounts up to $500,000 for a guaranteed loan, $250,000 for equity, and $20,000 for a matching grant, while an FAQ has cited a lower guaranteed-funding amount and a 75% guarantee. Programme limits and eligibility must therefore be checked before applying. Targeted support may cover women, young entrepreneurs, creative businesses, persons with disabilities, Family Islands, the blue economy, food and farming, and inner-city businesses. The Business Development Incentives Programme Act 2025 may provide incentives to an eligible licensee conducting a qualifying investment activity, but approval requires an application to the Minister and compliance with evidence and record-retention duties. FIDEA, Family Island, and sector-specific concessions depend on the island, activity, and current programme period and do not apply automatically. To stop trading, the business reports inactivation or cessation online as a change of circumstance, settles outstanding taxes and fees, and submits the notification within 14 days after stopping and no later than 31 December of the licence year. A late notification costs $100. Cancelling a Business Licence does not dissolve a company; company closure requires a separate Registrar General’s Department process under the applicable Companies Act or IBC Act, such as winding-up, dissolution, or strike-off.