What is an IBC?
Published 15 October 2026 · 2 min read
An IBC, or International Business Company, is a company formed under The Bahamas' International Business Companies Act, 2000, typically used to hold investments or run business outside The Bahamas. It needs at least one director and one shareholder, a licensed registered agent and a registered office in The Bahamas, and can usually be incorporated within a couple of working days once due diligence is complete.
What an IBC is used for
Founders and families use IBCs as:
- Holding companies for shares in other businesses, investments or property abroad.
- International trading or service companies that invoice clients outside The Bahamas.
- Investment vehicles for funds, securities or digital assets, subject to the relevant licensing.
- Family and succession structures, often alongside a trust or foundation.
An IBC can carry on any lawful activity its memorandum allows. Some activities, such as banking, insurance and fund management, need their own licence on top of incorporation.
Key features
- People: at least one director and one shareholder. They can be any nationality and need not live in The Bahamas, and a company can act as director.
- Local presence: every IBC must have a registered office and a registered agent in The Bahamas. The agent must be licensed under the Financial and Corporate Service Providers Act.
- Shares: issued in registered form.
- Name: must end with a suffix such as Ltd., Inc., Corp., LLC, GmbH or S.A.
- Speed: registered agents typically incorporate within two working days once identity and source-of-funds checks are complete.
Taxes
The Bahamas has no corporate income tax, capital gains tax or withholding tax on dividends. Owners may still owe tax where they personally live, so take advice in your home country.
FAQ
Can an IBC do business inside The Bahamas? Yes. It needs a business licence and must be designated “resident” for exchange control purposes. Turnover earned inside The Bahamas is taxed at different rates from overseas turnover.
Do I need to travel to The Bahamas to set one up? Not usually. Registered agents generally work with notarised copies of ID and proof of address, so incorporation can be done remotely.
Is the list of shareholders public? No. Shareholder and beneficial ownership details are held by the registered agent and in a secure government database that only authorised officials can access.
Is an IBC the same as a registered office or virtual office? No. The registered office is a legal requirement provided by your registered agent. A virtual office is a separate service giving you a business address, mail handling and a local phone number.
Thinking about an IBC? Corallium can talk you through the options and connect you with the right people. Contact us.
This article is general information, not legal, tax or immigration advice. Rules and fees change; confirm current requirements with a licensed professional before acting.
Sources
- Securities Commission of The Bahamas: Financial and corporate service providers
- H&J Corporate Services: Memorandum on the formation of an IBC, 2020
- PwC Bahamas: The new Business Licence Act, 2023 and IBCs, December 2023
- PwC Worldwide Tax Summaries: The Bahamas, taxes on corporate income, reviewed July 2026
- PwC Worldwide Tax Summaries: The Bahamas, withholding taxes, reviewed July 2026