Foreigners can open a bank account in the Bahamas. It can be set up for individuals who need them for personal reasons, and for individuals representing companies, which require having a corporate bank account in order to develop a commercial activity.
It is also possible to open an offshore bank account, and this is a recommended pathway for foreigners who do not have their place of habitual residence in the Bahamas. In general, theoffshore accountis set up for business purposes, but it is also available for high net-worth individuals, who want to deposit their finances in banks that offer very good conditions.
Table of Contents
What documents are necessary in order to set up an offshore bank account in the Bahamas?
There are several basic documents that all banks in the Bahamas will require foreign clients who want to open an offshore account. As mentioned above, being a resident of the Bahamas is not a prerequisite for opening the account, as foreign non-residents can easily open it, as long as they meet the basic conditions, which are:
- documents attesting the identity of the applicant (ID, passport);
- proof of residency (requirement imposed regardless of the country of residence);
- a bank statement issued by the bank where the applicant is currently a client (in the Bahamas or elsewhere);
- the minimum deposit (it can vary from one bank to another, and differences can appear based on the type of account the client wants to set up).
The same documentation is required in the case of clients who opt toopen an overseas bank accountfrom their country of residence. It is possible to complete the procedure online, but this does not represent a standard procedure, it is a service offered just by some of the banks; our consultants can present the banks that offer this service.
Open an IBC account in the Bahamas
The IBC stands for International Business Company, which is a business form that can be incorporated here for offshore activities. This is why the offshore bank account for business purposes is known as the IBC account in the Bahamas.
The setup of the bank account can be started after the process of offshore company formation has been initiated by the investors, as the commercial bank of choice will ask for corporate documents, including the company’s statutory papers.
Besides the company’s bylaws, investors must present documents attesting the offshore company’s registered address and the identity documents of the founders. The list of documents can vary from one bank to another, but in general, all banks that set up commercial accounts will need the company’s basic papers, such as:
- the certificate of incorporation;
- the articles of association and memorandum;
- the authorized signatures of the directors and shareholders;
- the company’s registered address (it is attested by various documents, including rental contracts or utility bills), etc.
Investors must also subscribe a minimum deposit – this also depends on the bank preferred by the investor. For instance, a local bank in the Bahamas asks for a deposit ranging from $5,000 to $10,000, while other banks may impose a lower minimum deposit.
For those who are not physically in the Bahamas during the incorporation of their offshore company, the remote application is possible, as local banks (the ones that allow foreigners to open an overseas bank account online) provide this service for individual and corporate accounts.
Of course, you can also grant us with the power of attorney and our team can complete this procedure, in person, at the bank of choice. Once the application is made, the bank may ask for further clarifications and after the background check is completed, corporate clients can subscribe the deposit, after which the account becomes functional.
How long does it take to open an offshore account?
It depends on the type of account, the bank selected (as each may have its own internal procedures) and the documentation provided by the client (in some cases, documents may not contain all the required data or the banks may ask for further papers/clarifications).
The minimum amount of time in which a client can open a bank account in the Bahamas is 2 weeks. The maximum timeframe in which the procedure can be completed is 4 weeks, which is in line with the timeframe that other offshore jurisdictions complete the setup of an offshore account (in some locations the procedure can take up to 5-6 weeks).
The Bahamian banking sector
Banking activities, whether onshore or offshore, are regulated in accordance with the rules of the Central Bank of the Bahamas, which acts as a supervisor and regulator of the entire financial system, not just of banking activities. In the list below,our consultants present a few characteristics of this industry:
- the country’s national currency is the Bahamian dollar, which is maintained at a 1 to 1 ratio with the American dollar;
- according to the data presented by the Central Bank of the Bahamas, there are a total of 245 banks and trust companies that have a license to operate in this country (out of which, only several are commercial banks, where foreign clients can open an offshore bank account);
- the legislative system regulating the financial sector was modernized in 2009, when 9 new laws were enacted with the purpose of establishing better rules against money laundering and other criminal financial activities;
- persons who open the bank account must be at least 18 years old, however, it is possible to set up bank accounts in the name of minors, following specific procedures;
- an onshore bank account can be opened in a period of 3 days, but this is highly influenced by the bank of choice and its internal procedures.
Can foreigners open an offshore merchant account in the Bahamas?
Yes, the merchant bank accountis a necessary tool for any business that sells goods online. Therefore, those who plan to start the process of offshore company formation in the Bahamas for an e-commerce business can also set up a merchant account.
In the Bahamas, the merchant account formalities can be completed with local banks. The documentation required is different than the one necessary for savings or checking accounts, as the account is necessary for e-commerce legal entities, thus, specific documentation must be added to the application file. We invite foreigners to contact our team of consultants for step-to-step guidance.