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Business Permits & Incorporation for Foreigners in Long Island Bahamas

Good to know

Good to Know

  • The path you need depends entirely on whether the business will actually trade on Long Island (guesthouse, tour company, shop, restaurant) versus being a pure offshore holding vehicle — an IBC is fast and cheap but legally cannot transact business with Bahamian residents or operate on the ground locally.
  • If you're setting up a real operating business on Long Island, expect a Family Island Local Government consultation as part of the BIA review — this is a genuinely distinct step from Nassau-based projects, not just paperwork.
  • The BS$500,000 minimum capital investment threshold for non-Bahamians is an investment-size trigger, not a deposit you hand to the government — but it does mean very small solo ventures by foreigners can run into friction with the official process.
  • No blanket law forces you to take on a Bahamian co-owner, but a local partner is explicitly viewed favorably in the approval process and can speed things along — worth factoring into your planning even though it's optional outside reserved sectors.
  • Multiple independent sources (US State Department, US Department of Commerce) flag the NEC/Cabinet approval stage as a recurring source of real-world delay beyond the official 60-day figure — budget contingency time.
  • There's no personal or corporate income tax in the Bahamas, but almost every business — sole proprietor or company — still owes an annual Business Licence Tax based on gross revenue (turnover), not profit, so a business can owe tax even in a loss-making year.
  • If you set up shop physically on Long Island rather than Nassau, your Business Licence needs to be issued for that specific island and location — you can't rely on a licence obtained elsewhere in the Bahamas.
  • Most remote-work digital nomads who simply work online for overseas clients and don't serve local Long Island customers generally don't need any Bahamian business licence or entity at all, since the licence requirement is triggered by 'carrying on business in or from within The Bahamas.'
  • If you do form an IBC, be aware that since January 2024 IBCs now pay a new annual levy on foreign-sourced revenue — the old idea that Bahamian offshore companies pay zero fees regardless of income is outdated.
  • A sole proprietorship is simple to set up but gives you no liability protection; forming an IBC or LLC is the standard route for foreigners who want liability protection or plan to hire locally.

Business Licence Tax General

Who Must Get One
Any person or entity 'carrying on business in or from within The Bahamas' — this includes IBCs, LLCs, ordinary companies, and sole proprietors, with limited exemptions (e.g. pure equity-holding entities, regulated investment funds).
Issuing Authority
Department of Inland Revenue (Ministry of Finance)
Filing And Renewal
Licences expire December 31 each year; renewal applications (with turnover figures for the prior year) are due by January 31 of the following year. Businesses with turnover above roughly $250,000 must file a Business Licence Return, and those above $5 million must submit audited financial statements.
Island Specific Requirement
A separate Business Licence is required for each island and each specific location where the business operates — a licence issued for Nassau/another island does not cover operations set up on Long Island.

Rate Schedule Official

  • Flat fee
    Visa fee
    BSD 100
    Turnover Band Local
    New business (first year)
  • 0.50% of turnover
    Turnover Band Local
    BSD 50,001 – 500,000
  • 0.75% of turnover
    Turnover Band Local
    BSD 500,001 – 5,000,000
  • 1.25% of turnover
    Turnover Band Local
    Over BSD 5,000,000

Structure Comparison For A Foreigner

Reserved Sectors Caveat
Certain sectors (e.g. retail distribution, construction, fishing) are reserved for Bahamian ownership under the National Investment Policy; foreigners entering other, open sectors typically still need approval from the Bahamas Investment Authority / National Economic Council before starting operations.

Ibc Or Company

Best For
Anyone wanting liability protection, a credible international invoicing entity, or planning to eventually hire staff or hold local assets.
Legal Nature
Separate legal entity with limited liability. The most commonly used vehicle for non-resident entrepreneurs is the International Business Company (IBC); an LLC under the Limited Liability Company Act 2016 is a similar alternative.
Tax Treatment
If the IBC does not carry on business in or from within The Bahamas (i.e. no local Bahamian clients or operations — purely serving overseas clients), it is generally not subject to the domestic Business Licence regime, but since January 2024 it does face the separate foreign-sourced-revenue levy described above. If it does operate locally (e.g. a shop, rental property, or service business physically based on Long Island), it must hold a Business Licence and pay the turnover-based tax like any local company.
Foreign Ownership
Full 100% foreign ownership is permitted for IBCs, LLCs and branches, with no resident-director or resident-shareholder requirement — a single individual can be sole director and sole shareholder.
Setup Requirements
Requires a licensed local registered agent and a registered office address in the Bahamas; incorporation is fast, typically 1-3 business days once documents are ready.

Sole Proprietorship Freelancer

Best For
Very small-scale, low-liability local activity (e.g. a single freelancer serving a handful of local clients on the island).
Legal Nature
No separate legal personality — the owner and the business are the same person, so personal assets are fully exposed to business liabilities.
Tax Treatment
Pays the same turnover-based Business Licence Tax as a company, plus self-employed National Insurance contributions; there is no personal income tax to layer on top.
Registration Steps
Register a business name with the Registrar General's Department (only required if trading under a name other than your own), then obtain a Business Licence from the Department of Inland Revenue.
Foreign Owner Note
A non-Bahamian applying for a new Business Licence must supply approval from the Bahamas Investment Authority / National Economic Council as part of the application, in addition to the usual registration documents.

Ibc Specific Levy On Foreign Sourced Revenue

Summary
As part of moving away from 'ring-fenced' tax-exempt status for offshore companies, IBCs now pay a separate annual levy on revenue attributable to operations outside The Bahamas (on top of, or instead of, the domestic Business Licence Tax depending on where the revenue is earned).
Exemptions
Regulated investment funds and pure-equity-holding companies are exempt from this levy.
Effective Date
January 1, 2024

Rates

  • Foreign-sourced revenue up to BSD 1,000,000
    Visa fee
    BSD 2,500
    Note
    flat fee
  • Foreign-sourced revenue over BSD 1,000,000
    Rate
    0.25% of revenue, capped at
    Cap
    BSD 100,000

Entity Types

  • Domestic Company (Operating a Real Business in The Bahamas, E.g. on Long Island)
    Detail
    Foreign investors are required to submit project proposals for the consideration of the BIA, which then submits a recommendation to the NEC, and all applications for foreign investment must be approved by the National Economic Council.
    Governing Law
    Companies Act, 1992
    Who It Is For
    A foreigner wanting to run an actual on-the-ground business (guesthouse, restaurant, tour operation, retail, etc.) on Long Island or anywhere else in The Bahamas.
    Foreign Investor Approval Required
    Yes
  • International Business Company (IBC)
    Detail
    Foreigners can open an IBC but are required by Bahamian company law to do so through a registered agent, and only attorneys, licensed public accountants, or licensed banks/trust companies are qualified to act as that agent.
    Governing Law
    International Business Companies Act, 2000 (as amended 2014)
    Who It Is For
    A foreigner setting up an offshore holding, trading, or investment vehicle that does NOT transact business with Bahamian residents or operate on the ground locally.
    Foreign Investor Approval Required
    No
    Restriction Note
    An IBC may not transact business with Bahamian residents, may not own real property in The Bahamas beyond office use, and cannot conduct banking or insurance business — so this route does not substitute for the domestic approval process if the actual business (e.g. a Long Island tourism operation) is based and trades locally.

Typical Cost

  • BIA Project Proposal Review (Domestic/foreign-investor Route)
    BIA Project Proposal Review (Domestic/Foreign Investor Route)
    BSD 0.00

    There are no fees associated with this service.

  • BSD
  • Business Registration Fee (Business Licence Division)
    Business Registration Fee (Business Licence Division)
    BSD 100

    Registration is relatively swift, taking about one week, with an associated fee of BS$100, equivalent to US$100.

  • IBC Government Incorporation Fee

VAT

Rate
10% standard rate (raised from 7.5% in 2018)
Status
Fully legal and regulated
Applies To
Most goods, services and imports; a business must register once it exceeds the taxable turnover threshold set under the Business Licence Act/VAT Act.
Exempt Items
Certain essentials such as grocery staples, medicines, and property insurance are VAT-exempt.

Scope Note

The Bahamas taxes businesses uniformly by national statute (Business Licence Act 2023, VAT Act 2014, IBC Act) — there is no Long Island-specific tax rule. The one genuinely location-relevant point is that a Business Licence covers only the specific island/location it was issued for, so a company physically based on Long Island needs its own local licence rather than relying on a Nassau-issued one.

Corporate Income Tax

Status
Fully legal and regulated
Summary
The Bahamas levies no corporate income tax, capital gains tax, withholding tax, or payroll tax on businesses of any ownership structure, foreign or domestic. This is a deliberate, long-standing national policy rather than a Long Island-specific incentive.
Primary Business Tax Instead
Instead of income tax, almost every business (sole proprietor or company) pays an annual Business Licence Tax calculated on gross turnover (revenue), not profit.

Self Employment Social Contributions

Self Employed Rate
10.3% of insurable weekly earnings, capped at BSD 810/week in earnings.
Employer Employee Split If Hiring Staff
Employer contributes 6.65% and employee contributes 4.65%, also capped at BSD 810/week in earnings.
Note
Not personal income tax (Bahamas has none) but a mandatory National Insurance social-security contribution, relevant to anyone operating as a sole proprietor.

The Bahamas (which includes Long Island, a Family Island administered from Nassau) has two very different incorporation tracks for a foreigner, and which one applies depends on whether the business will actually operate/trade within The Bahamas or purely offshore. There is no separate 'Long Island' business registry — all company registration is centralized at the Registrar General's Department in Nassau, though Family Island local government is consulted on on-the-ground projects.

Timeline

Ibc Offshore Route
Government e-filing offers Express Incorporation (1 hour) or Regular Service (48 hours) at the Registrar General's Department, while registered-agent-assisted filings typically report 3-5 business days from document preparation to Certificate of Incorporation.
Domestic Business Foreign Investor Route
A determination on the Project Proposal is communicated within 60 days following submission of a completed proposal, though larger projects needing NEC/Cabinet review and environmental/economic assessments can take considerably longer, and multiple sources note that American and other foreign investors have historically experienced delays and a slow approvals process.

Official Government Links

Steps For An Ibc Offshore Route

Steps For An Ibc Offshore Route

  • 1. Engage a licensed Bahamian registered agent (required by law — only attorneys, licensed public accountants, or licensed banks/trust companies may act as agent).
  • 2. Registered agent reserves the company name and prepares the Memorandum and Articles of Association plus a Letter of Compliance under the IBC Act.
  • 3. File incorporation documents with the Registrar General's Department (Companies Section) in Nassau.
  • 4. Certificate of Incorporation is issued; a visit to The Bahamas is not required for this route.

Local Partner Or Sponsor Mandate

Detail
Foreign and domestic private entities retain the right to establish and own business enterprises in The Bahamas without broad restrictions on foreign ownership and control, though sector-specific limitations remain in place to protect sensitive industries such as real estate, broadcasting, and banking, and non-Bahamians are restricted to owning a maximum of 49% of banks and trust companies.
Status
No blanket legal requirement for a Bahamian co-owner/sponsor for most sectors, but strong government encouragement plus outright reservation of some sectors for Bahamians only.
Minimum Capital Trigger
Non-Bahamians must meet a minimum capital investment of BS$500,000 and the proposed investment must not be in an area reserved for 100% Bahamian participation.
Reserved Sectors Caveat
The government encourages local ownership and/or local equity participation and gives this favorable consideration during the investment application process, and a local partner can simplify business procedures and provide some level of protection to the investor. A specific list of sectors reserved wholly or partly for Bahamians is maintained by the Bahamas Investment Authority.

Steps For A Domestic Business E.G. On Long Island

Steps For A Domestic Business E.G. On Long Island

  • 1. Prepare and submit a Project Proposal to the Bahamas Investment Authority (BIA) in Nassau, covering the nature of the business, investment details, and employment plans — all non-Bahamians or Permanent Residents seeking to do business in The Bahamas must submit a Project Proposal to the BIA.
  • 2. BIA review and referral: depending on the nature of the proposed business activity, the relevant Government Ministry or Agency is consulted for input, including the Ministry of the Environment, Ministry of Works and Transport, Ministry of Housing, and the respective Family Island Local Government — meaning for a Long Island project, the Long Island District/Local Government Council is specifically consulted.
  • 3. National Economic Council (NEC)/Cabinet approval: larger foreign investment projects require approval by the National Economic Council, a sub-committee of the Cabinet, and usually also require environmental and economic impact assessments for review by multiple government agencies prior to NEC consideration.
  • 4. Once approved, incorporate the operating entity (typically under the Companies Act 1992) with the Registrar General's Department: reserve a company name, prepare Memorandum and Articles of Association, and file with supporting documentation.
  • 5. Obtain a Business Licence from the Business Licence Unit, and register employees (Bahamian and foreign) with the National Insurance Board — compulsory under the National Insurance Act, with monthly contributions required from the employer.
  • 6. If hiring foreign staff, apply separately to the Department of Immigration for work permits; employers wishing to employ a foreign worker long-term must first advertise the position locally, and only after that can apply to the Department of Immigration for permission to recruit from abroad.
AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.

  1. 1.bahamas.gov.bs
  2. 2.bahamas.gov.bs

More About Long Island Bahamas

Data last updated July 2026 · Verify anything important.