Payment Service Provider License - Bahamas

About Bahamas

The Bahamas’ financial services sector is well-developed and well-regulated. It is well-known for its stability, offshore banking expertise, and favourable regulatory framework.

The Bahamas offers entities the opportunity to get licences as payment service providers. In The Bahamas, a payment service provider typically provides payment processing, money transmission, e-wallets, remittances, and merchant acquisition.

To enable internal and international transactions, the Bahamas has built efficient and secure payment systems. Automated Clearing House (ACH) for electronic fund transfers, card payment networks, and other electronic payment platforms are examples of these systems.

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 404,058 as of Monday, May 22, 2023.

While English is the official language of the Bahamas, people talk in a Bahamian dialect that has given rise to a plethora of distinctive slang words and phrases.

The legal system in the Bahamas is based on English common law, which has been supplemented since 1964 by an American style of constitutionalism that states the presence of certain fundamental principles that must be obeyed and enforced. The Constitution guarantees certain rights.

  1. No corporate tax
  2. Payment institutions enjoy less stringent regulatory
  3. Advantageous tax treatment for shareholders of PSPs
  4. A stable political environment
  5. A cost-effective jurisdiction


License: Payment Service Provider
Timeframe for Approval: Within 6 months
Regulator: The Central Bank of The Bahamas

Company Structure

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 Office: Required
Local Staff: Required
Compliance Officer: Required
AML/KYC: Required
Audit: Required
Economic Substance: Required
Corporate Tax Rate: In general, the corporate tax rate for listed corporations is 25%, whereas unlisted public and private limited companies pay 35%. The corporate tax rate for banks, insurance companies, and other financial firms is 37.5% if listed and 40% if not listed.
Currency: Bahamian Dollar
Minimum Paid-up Capital: $100 000
Capital Requirement: $100 000
Tax Structure: 0% Tax on Offshore Profits
  1. Application for reservation of company name
  2. Preparation and submission to the Central Bank of the application for respective License
  3. Preparation and submission of the application and incorporation documents to the Registry
  4. Incorporation of the company
  5. Opening of the local bank account
  6. Obtaining the PSP License
  1. Money Transmission
  2. Payment Processing
  3. E-Wallet Services
  4. Remittance Services
  5. Currency Exchange
  6. Merchant Acquiring Services
  7. Prepaid Card Services
  8. Compliance and Risk Management

For that reason, please provide us with the following documents.

  • A notarized copy of valid passport of all directors and shareholders (2 sets)
  • A copy of proof of residential address of all directors and shareholders (2 sets). Can be utility bills or bank statements
  • Bank reference letter
  • Lawyer’s / auditor / notary reference letter
  • Bank balance confirmation for a shareholder – letter stating a minimum balance
  • CV for directors and shareholders
  • Educational qualification certificate for directors and shareholders

In the case if the shareholder is a company, needs to provide:

  • Passport of an Authorized Person of the Company (to be certified as a true copy by Commissioner of Oath, Notary Public or Embassy)
  • Utility Bill as a proof of residency of an Authorized Person for the body Corporate (to be certified true copy by Commissioner of Oath, Notary Public or Embassy)
  • Latest CV detailing Educational background and Working Experiences of an Authorized Person for the body Corporate
  • M&A to include the clause on the establishment of the Bahamas Company or allowing to do so
  • 2 Reference letters for the Authorized Person that are to be issued by a Professional such as a Lawyer, Accountants, Company Secretary or Bank
  • Registries of Company listing down the name of Director, Shareholder, Auditor, Company Secretary (to be certified as a true copy by the Company Secretary)
  • Certificate of Incorporation (to be certified as a true copy by the Company Secretary)
  • Certificate of Registered Address of the Company (to be certified as a true copy by the Company Secretary)
  • Resolution by the Company to appoint the Authorized Person to act on behalf of the Company (to be certified as a true copy by the Company Secretary)
  • Resolution of the Company to invest in Bahamas branch (to be certified as a true copy by the Company Secretary)
  1. Incorporation of Bahamas offshore corporation
  2. Arrange for local registered officer and local directors, if required
  3. Draft corporate bylaws, minutes and owner share issuances
  4. Establishment of corporate bank account suitable for forex operations
  5. Establishment of merchant service account for accepting credit and debit cards
  6. Draft requisite business plan, financial statements and financial projections
  7. Draft requisite Anti-Money Laundering & Know-Your-Customer policies
  8. Responses to regulatory authorities are prepared and written.
  9. Prepare and process application for The Bahamas Payment Service Provider License
  10. Representation before licensing regulatory authority, banks and liquidity providers