Economy of Bahamas

Overview

Bahamas has been declared as the richest country, in the community of Caribbean. A new report has been filed on this subject, ranking Bahamas as the richest country in Caribbean community, as per the Gross National Income per Capita calculations.

Bahamas has a gross national income per capita of $ 21.280. This statistic has been furnished by the World Bank, in its report of World Development 2014. Bahamas has also been declared as the third richest country in the Americas.

Economy of Bahamas

Bahamas is a country, whose economy is based on the tourism industry. Bahamas is located ideally in the Caribbean, to attract maximum number of tourists to this country. The entire economy of Bahamas is based on tourism. Bahamas has to depend on other countries for its supply of resources.

Bahamas is a developing nation, having a stable economy. Bahamas also depends much on off shore banking for its economy.

The steady growth in the tourism industry in Bahamas has resulted into a boom in constructions of new hotels, tourist resorts and residential infrastructure. This has, in turn resulted in a very positive growth in national GDP, for a good number of years.

Bahamian economy has the financial sector as the second best important sector, in the national economy. Financial sector contributes about 15% of the national GDP in Bahamas.

Drawbacks suffered by Bahamian Economy-

The September 2001 terrorist attacks on America, affected tourism in Bahamas badly. It took a while for Bahamas to recover and it is still under the process of recovery.

The Bahamian government enacted new rules and regulations on the financial sector, on December 2000. A number of International businesses left Bahamas, since then.

The agriculture sector and the manufacturing sector contribute about 10% in the national GDP of Bahamas. This sector also is not showing the desired growth.

Conclusion

The prospects of Bahamas economy rest heavily on the tourism sector. This industry is again dependent on the economic growth of America, as America provides 80% of the total tourists to Bahamas. The Bahamian government is also now looking towards E Commerce for its economic developments.

Why form an offshore company in Bahamas?

Bahamas is one of the top holiday destination spots for American and European people. It is also a tax free haven for investors and entrepreneurs who are looking to pay minimum taxes to the government. Although Bahamas has agreed to sign the OECD treaty one can take advantage of the Bahamian International Business Company (IBC) to have higher level of privacy and confidentiality. Bahamas banks offer wide array of facilities like offshore accounts and savings account for foreign investors. However both residents and foreigners who are employees do have to pay national insurance.

Form an Offshore Company in Bahamas

Benefits of Forming an Offshore Company in Bahamas

  1. 0% Income tax, corporate tax and capital gains tax
  2. Zero sales tax
  3. One can do business locally and also own local property
  4. 24x7 banking support
  5. You can use Nominee Directors to remain confidential
  6. Availability of Shelf Companies
  7. Incorporate a company within 48 hours
  8. Filing annual returns not required
  9. Require only one director and one shareholder