http: // www.formacompany.c om/en/bahamas/bahamas-branch-off ice [email protected] Bahamas Branch Office A branch is one way for a company to set up a business in The Bahamas. Opening a branch has many drawb acks, mainly that the foreign parent carries full liability for the branches ope rations and that lengthy and complicated d ealings with the tax authorit ies may be needed regarding the branches tax obligations. Opening a Bahamas Branch of a Fo reign Company The disadvantages of a branch o ffic e are: The parent company is fully liable for the lia bilities of the branch The branches representatives may be held jo intly and severally liable for tax debts The financial statement s of the parent must be lodged at the Companies R egistry The branches obligations are the same as the parent, including filing VAT ret urns, employees returns and corporation tax returns, s o there are few savings in administering a branch Banks and clients may prefer dealing with a Bahamas company rather than a foreign branch A branch is rarely idea l for substantial projects because the parent company runs the entire risk Upon registration of a branch, evidence has to be provided of the legal existence of t he parent Any public act by the branch, is likely to need ratification by the board of the foreign parent. A company that signs contract s in front of a notary on a regular basis, should in corporate for administrativ e ease The advantages are: Less obligations to present accounts than with corporations Features of a branch office in Th e Bahamas A branch is usually a n adequ ate vehicle for low cost projects. However, it is not the ideal choice for substantial projects because the paren t company and branch o ffic es activit ies are not differentiated, the parent company is fully liable for the branches liabilities. From a tax point of view, branches are permanen t establishments of non-resident companies an d a Baha mas branch is not a separate lega l company from its parent. The branch must have the same name as the parent company. A branch of a non-resident company must appoint a resident individual or a company to represent it in its dealings with the tax authorities. T he representatives may be held jointly and severally liab le for the tax debts of the permanent establishments of non-resident entities, which they represent. To register a branch, evidence has to be provided of the existence of the parent, certif ied copies of the Articles or Stat ues, the names of the directors, t he share capital, the registered office, and the names of the representatives who will act for you. Various documents will nee d to be translated, the documents include: Your parent's registration certificate Your company's articles of association The names of the company's directors and secretary After your branch is register ed All stationery, order forms and similar do cuments used by your branch are required to show: The place of registration of the parent The number with which it is registered The legal classif ication of the company The address of its registered office The place of registration of the branch, and its registration number

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http://www.formacompany.com/en/bahamas/[email protected]

Bahamas Branch Office

A branch is one way for a company to set up a business in The Bahamas. Opening a branch has many drawbacks,mainly that the foreign parent carries full liability for the branches ope rations and that lengthy and complicated dealingswith the tax authorities may be needed regarding the branches tax obligations.

Opening a Bahamas Branch of a Foreign Company

The disadvantages of a branch o ffice are:

The parent company is fully liable for the liabilities of the branchThe branches representatives may be held jo intly and severally liable for tax debtsThe financial statements of the parent must be lodged at the Companies RegistryThe branches obligations are the same as the parent, including filing VAT returns, employees returns and

corporation tax returns, so there are few savings in administering a branchBanks and clients may prefer dealing with a Bahamas company rather than a foreign branchA branch is rarely idea l for substantial projects because the parent company runs the entire riskUpon registration of a branch, evidence has to be provided of the legal existence of the parentAny public act by the branch, is likely to need ratification by the board of the foreign parent. A company that signscontracts in front of a notary on a regular basis, should incorporate for administrative ease

The advantages are:

Less obligations to present accounts than with corporations

Features of a branch office in The Bahamas

A branch is usually an adequate vehicle for low cost projects. However, it is not the ideal choice for substantial projectsbecause the paren t company and branch o ffices activities are not differentiated, the parent company is fully liable for thebranches liabilities.

From a tax point of view, branches are permanen t establishments of non-resident companies and a Bahamas branch isnot a separate lega l company from its parent.

The branch must have the same name as the parent company.

A branch of a non-resident company must appoint a resident individual or a company to represent it in its dealings withthe tax authorities. The representatives may be held jointly and severally liab le for the tax debts of the permanentestablishments of non-resident entities, which they represent.

To register a branch, evidence has to be provided of the existence of the parent, certified copies of the Articles orStatues, the names of the directors, the share capital, the registered office, and the names of the representatives who willact for you.

Various documents will need to be translated, the documents include:

Your parent's registration certificateYour company's articles of associationThe names of the company's directors and secretary

After your branch is registered

All stationery, order forms and similar documents used by your branch are required to show:

The place of registration of the parentThe number with which it is registeredThe legal classification of the companyThe address of its registered officeThe place of registration of the branch, and its registration number