The Bahamas
Bahamas Fund Services & Offshore Formation
Launch your fund in a jurisdiction that blends 300 years of common-law stability with some of the most forward-thinking fund statutes on the planet. Our Bahamas practice delivers turnkey formation and ongoing governance for SMART, Professional, ICON and digital-asset funds—leveraging zero-tax efficiency, fast-track licensing under the Investment Funds Act 2019, and the fintech-ready DARE 2024 framework. From structuring memos and offering documents to Securities Commission filings and economic-substance compliance, we give emerging and established managers a friction-free runway to raise capital and deploy strategies in one of the Caribbean’s premier financial centres.
Why the Bahamas?
The Bahamas marries a 300‑year common‑law tradition with innovative legislation that welcomes both traditional and digital‑asset strategies. Key advantages include:
- Tax neutrality – no income, capital‑gains, or withholding taxes on fund profits.
- Regulatory flexibility – the Specific Mandate Alternative Regulatory Test (“SMART”) regime offers template‑based structures with lighter reporting obligations.
- Digital‑asset leadership – the Digital Assets & Registered Exchanges Act (“DARE”) 2024 positions Nassau as a regulated crypto‑finance hub.
- Global recognition – comprehensive AML/CFT framework aligned with FATF standards, enhancing investor confidence.
Fund Vehicles at a Glance
Vehicle | Ideal For | Key Features |
|---|---|---|
SMART Fund | Family offices, boutique managers | Pre‑approved templates; max 50 investors; audit waiver possible. |
Professional Fund | Sophisticated investors ≥ US $100k | Fast‑track approval (72 hours); annual audit required. |
Standard Fund | Retail distribution | Full prospectus; heightened SCB oversight. |
ICON (Investment Condominium) | Latin‑American investor pools | Contractual fund structure; no legal personality; managed by an Administrator. |
Segregated Accounts Company (SAC) | Multi‑strategy platforms | Statutory ring‑fencing of assets and liabilities. |
Exempted Limited Partnership (ELP) | Private‑equity & VC funds | “Pass‑through” vehicle paired with a SMART/Professional master. |
Digital‑Asset Fund under DARE 2024 | Crypto, DeFi, tokenised strategies | Licensing pathway integrated with the Securities Industry Act 2024. |
Regulatory Framework
- Investment Funds Act 2019 – primary statute governing collective investment vehicles.
- Securities Commission of the Bahamas (SCB) – licensing and ongoing supervision.
- DARE 2024 – updated digital‑asset regime replacing DARE 2020, broadening token‑issuance and custody rules.
- Financial & Corporate Service Providers Act 2020 – regulates administrators, custodians and directors.
Our Bahamas Formation Services
Jurisdiction & Vehicle Selection – Comparative memo aligning your strategy, investor base and tax profile with SMART, Professional or ICON structures.
Pre‑Incorporation Structuring – Name reservation, draft term‑sheet, director/administrator short‑list, registered office.
Offering Document Drafting – Information Memorandum, subscription docs, AML supplements and FATCA/CRS self‑certification.
SCB Licensing & Regulatory Filings – Complete electronic submissions, liaison with SCB officers, fast‑track review for Professional and SMART Funds.
Banking & Brokerage On‑Boarding – Introduction to Bahamas‑licensed banks and Level‑1 prime brokers; compliance pack preparation.
Substance & Governance – Economic‑substance analysis, physical office/board‑meeting solutions, appointment of independent directors.
Ongoing Compliance – Annual audit coordination, quarterly statistical returns, FATCA/CRS reporting, DARE 2024 digital‑asset disclosures.
Cost Transparency
Our Bahamas fund‑formation packages begin at US $22,500 (SMART/Professional) and include:
- Legal drafting & submission fees
- Registered office & statutory filings (year 1)
- SCB licence application and license fee
- Compliance policies (AML/CTF, FATCA/CRS)
- First‑year independent directorship (optional add‑on)
Custom quotes are available for ICONs, Standard Funds, or multi‑vehicle master‑feeder complexes.
Ready to structure your Bahamas fund?
Book a 20‑minute strategy call and receive a personalised roadmap to launch.