Free tool · Starting out

Starting a business in The Bahamas: the checklist.

Every official step from idea to open door, in order: business name, licence, BIN, NIB, VAT and, if you’re in Freeport, the Port Authority. Tick them off as you go.

Your checklist

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About your business

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Before you register

  1. Bahamian citizens and permanent residents can apply for a business licence directly. Non-Bahamians must first get approval from the Bahamas Investment Authority, which asks for a project proposal (the published guide gives a minimum investment of BS$500,000). Many small service and retail activities are reserved for Bahamians.

    Only if an owner is not a Bahamian citizen or permanent resident

    Bahamas Investment Authority (Office of the Prime Minister) · Official page ↗

  2. The Small Business Development Centre (Access Accelerator) offers one-on-one business advice, training, mentoring and help reaching financing, including its Guaranteed Loan Programme. It is optional, but useful before you spend money.

    Optional

    Small Business Development Centre (Access Accelerator) · Official page ↗

  3. Before you sign a lease, check that your location and activity are allowed. Some businesses need approvals from other agencies before the licence is issued, for example Physical Planning (zoning), Building Control, Environmental Health Services, or the Royal Bahamas Police Force for alcohol sales.

    Depends on your activity and premises (e.g. retail, food, alcohol, building work)

    Department of Physical Planning, Building Control, Environmental Health Services (as required) · Official page ↗

Register the business

  1. You can trade in your own name as a sole trader, or form a domestic company that is a separate legal entity. A company costs more to set up and needs an attorney, but separates business debts from your personal assets.

    Registrar General’s Department · Official page ↗

  2. Under the Registration of Business Names Act, an individual trading under any name other than their own true name, or a firm not using the partners' own names, must register the name with the Registrar General. Particulars must be filed within 14 days of starting business, and the certificate must be displayed at the place of business.

    Only if you trade under a name other than your own name (e.g. 'Sparkle Car Wash')

    Registrar General’s Department · Official page ↗

  3. Companies are incorporated online through the government portal’s Registry Services: reserve the name, complete the incorporation form and pay by card. Standard service takes about 48 hours (express about 1 hour), and an attorney must sign the statutory declaration and affidavit.

    Only if you choose a company

    Registrar General’s Department · Official page ↗

  4. Since September 1, 2026, the Department of Inland Revenue issues a 10-digit Bahamas Identification Number (BIN) through the One Tax Bahamas portal, which is replacing older systems. Each legal entity needs its own BIN. Business Licence and VAT modules are scheduled to move to the portal in November 2026; until then some filings still use vat.revenue.gov.bs and the 9-digit TIN.

    Department of Inland Revenue · Official page ↗

  5. A business licence application needs your National Insurance card and an NIB letter of good standing. Self-employed people register and contribute on their own earnings; employers must register within 10 working days of starting operations (see 'Once you hire').

    National Insurance Board · Official page ↗

Licence and tax

  1. Business licences are issued by the Business Licence Unit of the Department of Inland Revenue under the Business Licence Act, 2023. The government services page lists a flat BS$100 fee for a new licence (confirm the current fee with the Unit) and processing normally takes about 7 working days once all documents are in: proof of citizenship, NIB card and letter of good standing, certificate of incorporation if any, and other agency approvals.

    Department of Inland Revenue, Business Licence Unit · Official page ↗

  2. Businesses in the Port Area of Grand Bahama are licensed by the Grand Bahama Port Authority. Bahamian applicants pay a non-refundable BS$250 processing fee, go through Licensing Committee review, pay the first year’s licence fee and a premises inspection, and sign a licence agreement; processing is about 2 to 4 weeks. Ask the GBPA and Inland Revenue what central government filings also apply to you.

    Only if the business operates in the Freeport Port Area

    Grand Bahama Port Authority (Customer Relations / Licensing) · Official page ↗

  3. You must register for VAT when your taxable sales in the past or next 12 months exceed BS$100,000. The standard rate is 10%. Businesses below the threshold can register voluntarily if they keep proper records and can file regular returns.

    Only if taxable sales exceed BS$100,000 in 12 months (or by voluntary choice)

    Department of Inland Revenue (VAT) · Official page ↗

Once you are open

  1. Business licences expire on December 31. The renewal application is due by January 31. By March 31 you file the return showing last year’s turnover, pay any tax still owed for last year, and pay the estimated tax for the new year (in full or in four instalments starting March 31). Turnover under BS$100,000 is exempt from business licence tax (0.5% from BS$100,000 to BS$500,000), and a business in its first year of operation pays no licence tax. Late filing carries a BS$100 penalty, late payment 10% plus interest.

    Department of Inland Revenue, Business Licence Unit · Official page ↗

  2. VAT-registered businesses with turnover under BS$5 million file quarterly (monthly on request); larger businesses file monthly. Returns and payment are due within 21 days after the end of each period.

    Only if registered for VAT

    Department of Inland Revenue (VAT) · Official page ↗

Once you hire

  1. Employers must register with NIB within 10 working days of starting operations and pay contributions for every employee. Contributions (employee 4.65% and employer 6.65% of insurable wages, up to the ceiling) are due by the 15th of the month after the wages were paid, on the monthly contribution schedule.

    Only if you have employees

    National Insurance Board · Official page ↗

Your progress
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steps done

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Checked October 2026. Fees and rules change: confirm each step on the official page.

How the numbers are worked out

This checklist covers the usual official steps to open a small service business in The Bahamas, such as a car wash, cleaning company, contractor or shop. Some steps apply only in certain cases, for example to non-Bahamian owners, companies, businesses in the Freeport Port Area, or employers. Fees and procedures change, so confirm each step with the agency listed before you rely on it.

Sources

Questions

How much is a business licence in The Bahamas?

The government services page lists a flat B$100 fee for a new licence (confirm with the Business Licence Unit), and processing usually takes about 7 working days once all documents are in. Turnover under B$100,000 is exempt from business licence tax, and so is a business in its first year.

When do I renew my business licence?

Licences expire on 31 December. The renewal application is due by 31 January; the turnover return, any tax owed for last year and the estimated tax for the new year are due by 31 March.

Do I need to register for VAT?

Only once taxable sales pass B$100,000 in 12 months, though you can register voluntarily below that.

Is this legal advice?

No. It is a plain-language summary of public information, checked October 2026. Confirm each step with the agency linked, or with an attorney or accountant.

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