The Bahamas is an offshore financial centre noted for its favourable regulatory framework, modern infrastructure, and reputation as a stable and secure country for Forex licencing. Applicants must meet specific conditions to get a Forex licence in the Bahamas, including having a minimum paid-up capital of $500,000, demonstrating a commitment to compliance with all relevant laws and regulations, and providing a complete business plan.
Typically, the application procedure takes many months and includes numerous stages of assessment and approval by the Securities Commission of the Bahamas (SCB). Once accepted, the licensee must comply with all applicable rules and regulations on an ongoing basis, including filing regular reports and undertaking periodic audits and inspections.
The Bahamas is a country in the northwestern West Indies, lying 80 kilometres (50 miles) south of Florida’s (USA) coast and north of Cuba. The Caribbean island chain comprises of over 700 islands and islets, as well as over 2,000 cays (coral reefs). There are only about 30 inhabited islands.
According to Worldometer’s elaboration of the most recent United Nations data, the current population of the Bahamas is 403,822 as of Saturday, April 29, 2023. According to UN data, the Bahamas 2020 population is predicted to be 393,244 people at the mid-year point.
While English is the official language of the Bahamas, locals speak in a Bahamian dialect that has given birth to an extensive number of unique slang words and phrases.
On July 10, 1973, it declared independence from the United Kingdom and now operates as a constitutional parliamentary democracy as part of the British Commonwealth. Its legal system is based on English Common Law.
The Bahamas provides licencing under its Securities Industry Act, which includes all relevant forex activities, including serving as both an introducing and direct broker. The licence is recognised globally, and many of the world’s leading forex brokers are licenced in the Bahamas.
The Bahamas’ forex licencing regime is deemed mature because the jurisdiction has been providing forex licencing services for several years and has built a robust regulatory framework that promotes openness, accountability, and investor protection. The Securities Commission of the Bahamas (SCB), the regulatory authority in charge of forex licencing in the Bahamas, has established clear and consistent standards for forex brokers and other financial service providers, and has demonstrated a commitment to enforcing these standards through regular inspections, audits, and other compliance measures.
Furthermore, the Bahamas has built a reputation as a reputable and reliable offshore financial centre, attracting a large number of forex brokers and other financial service providers to the jurisdiction. The Bahamas government has also taken initiatives to modernise its financial infrastructure, including the development of electronic payment systems and the expansion of internet and telecommunications services, which has aided the growth of the jurisdiction’s forex industry.
|Gov. Capital Req.||Timing||Tax Rate|
|$120,000 / $300,000||3 months||0 %|
Obtaining a Forex licence in the Bahamas has various advantages, including:
The Bahamas Securities Commission (SCB) has built a comprehensive regulatory framework to promote openness, accountability, and investor protection. The SCB has clear and consistent criteria for forex brokers and other financial service providers, which it is dedicated to implementing through frequent inspections, audits, and other compliance procedures.
The Bahamas is a reputable offshore financial centre with a stable political and economic climate. It possesses a modern infrastructure that can support the growth of the forex business, such as electronic payment systems and superior telecommunications services.
The Bahamas has a favourable tax system, with no income, capital gains, or inheritance taxes. Forex brokers and other financial service firms may earn significantly from this.
Because the Bahamas is strategically located between the Americas and Europe, forex brokers and other financial service providers can gain access to a diverse range of global markets.
Obtaining a Forex licence in the Bahamas can boost a broker’s brand and credibility because the jurisdiction is well-known for its dedication to openness, accountability, and investor protection.
|License:||Securities Industry Act Registration|
|Timeframe for Approval:||3 to 4 months|
|Regulator:||Securities Commission of The Bahamas (SCB)|
|Authorised Activities:||Forex, Tourism, Financial services, Shipping, Fishing, Agriculture, Construction, Manufacturing, Real estate, and Education|
|Corporate Structure:||The Bahamian options of business structure include individual business owner limited liability companies, companies under the Companies Law 1992, and companies under the International Companies Law.|
|Corporate Tax Rate:||15%|
|Currency:||Bahamian Dollar (symbol is B$, code is BSD)|
|Capital Requirement:||Minimum capital requirement: Investment Dealer and Agent – USD 300 000 Investment Agent – USD 120 000|
|Paid-up Capital:||No minimum paid-up capital|
|Local Director:||Minimum 1 director (can be only natural persons, no nationality or residency restrictions)|
|Local Shareholder:||Minimum 1 shareholder (can be natural or legal persons, no nationality or residency restrictions)|
|Local Registered Officer:||Required|
No Corporate Income Tax
No Personal Income Tax
Dividend income from foreign investments is not taxable in the Bahamas
Royalty income is not taxable in the Bahamas
There are no tax returns required
No Information Sharing
Stockholders are Not Public Record
Low Annual Fee
Obtaining a Forex licence in the Bahamas entails multiple processes, which include:
The first stage is to establish a business in the Bahamas. In the jurisdiction, the company must have a registered office and a resident agent.
The applicant must prepare and submit a detailed application to the Bahamas Securities Commission (SCB). The application must include extensive information about the applicant's company, financial situation, management structure, compliance rules and procedures, and other pertinent information.
The SCB conducts background investigations and due diligence on the application, its owners, directors, and senior officers. This involves checking the applicant's financial situation, criminal history, professional qualifications, and other pertinent information.
The SCB may undertake an onsite inspection of the applicant's offices and operations to ensure that all applicable rules and regulations are followed.
If the application is approved, the SCB will issue the applicant a Forex licence. The licence will outline the scope of the licensee's operations, the operating conditions, and the continuing reporting requirements.
After receiving a Forex licence, the licensee must follow all applicable laws and regulations, including anti-money laundering and counter-terrorism financing (AML/CFT) regulations. In addition, the licensee must keep proper records and paperwork and submit frequent reports to the SCB.
In addition to Forex licencing services, the Bahamas can provide a variety of other connected services, such as:
The Bahamas is a popular offshore company formation and corporate services destination. Incorporation, registered office and agent services, business secretarial services, and other related services are examples of these services.
The Bahamas has a thriving banking industry that provides a variety of services to Forex brokers and other financial service providers. Correspondent banking, overseas wire transfers, and other associated services are examples of these services.
The Bahamas has strong AML/CFT standards, which Forex brokers and other financial service companies must follow. AML/CFT risk assessments, compliance policies and processes, training, and other associated services are examples of compliance services
The Bahamas has a robust financial services regulatory framework, and Forex brokers and other financial service providers must undergo regular audits and assurance reviews to guarantee compliance with all applicable laws and regulations. Financial statement audits, internal audits, and other related services are examples of audit and assurance services.
Legal services can include aid with contract design and review, regulatory compliance advice, and other related services.
Bahamas registered company
Physical presence of approved persons
Risk Management, Supervisory, and AML/CFT Manuals
KYC Documents of Relevant Members
* The Commission or the local bank can require additional documentation at any point to certify specific information.
* If the documents are not in English, a notarized translation must accompany them
1. Establish international business corporation.
2. Preparation and drafting of shareholder and officer agreements.
3. Preparation and drafting of narrative business plan.
4. Preparation and drafting of current financial statements.
5. Preparation and drafting of 3 years financial projections.
6. Preparation and drafting of personal financial statements for owners.
7. Preparation and submission of application with appropriate regulatory authority
8. Preparation and drafting of responses to regulatory authority
9. Identification and engagement of auditor and forex prime broker.
10. Facilitate opening of bank accounts and payment processors.
11. Preparation and drafting of AML/KYC policies and procedures.
12. Preparation and drafting of client agreements and disclosures.