The Bootstrapper's Guide to Establish Your Fund in the Bahamas.

Working as CEO of Astorts Group, my team and I have received many inquiries about attractive jurisdictionsto establish your fund,so I decide to write this bootstrapper's guide that can be useful for many of you. 

What kind of projects are you going to launch within the fund? Have you already been involved in this business?

I dare to say that there are a lot of jurisdictions that can be attractive for investments but Bahamas, Cayman and Luxembourg as one of prestigious will likely prevail. Every jurisdiction from the above mentioned has it's own benefits and advantages. It goes without saying that this business is risky but at the same time you could have a good dividend, it can help you to find the huge scope of business opportunities and connections. And last but not the least most authorities currently aim at accelerating efforts to attract foreign direct investment and the investment climate is becoming considerably more accommodating. 

In this bootstrapper's guide I have decided to share with you my review about investment environment in the Bahamas, give some tips and recommendations for you within the funds registration process in this country.

From my experience there have been several tricky issues that come in mind when you decide to choose the country of incorporation for your fund:

  1. What the Bahamas could give me from residential and investing point of view?

  2. What are the requirements for the fund registration?

  3. What assistance I will need and what steps and included in the process of registration?

  4. What is the actual situation with the bank accounts opening? What difficulties I can face when a fund starts to operate?

Astorts Bahamas.jpg



The Bahamas speaks English...

This is the main reason why you are so welcome to run your business here.

The Bahamian dollar is equal to the U.S. dollar and you can easily use the U.S. dollars across the island as they are freely accepted as cash. 

The Bahamas archipelago is an ecological oasis sprinkled over 100,000 square miles of ocean, starting just 50 miles off the coast of Florida.

It comprises 700 breathtaking islands, over 2,000 rocks and cays, and boasts the clearest water on the planet— with a visibility of over 200 feet. You can see your toes as easily as you can the world’s third largest fringing barrier reef.

What advantages for you in the Bahamas?

  • The Bahamas is an import-oriented economy. However, substantial tourism activities and financial services provided by the country bring in a lot of foreign exchange to balance the economy. Bahamas economy is said to be developing and stable by CIA;

  • the Bahamas has the world’s third largest registry of ships;

  • there is no income or sales tax for Bahamas residents. Majority of the government revenue comes from tariffs and import fees;

  • gambling is made legal for non-Bahamians visiting the Bahamas.

With the Bahamas’ stable “free-market” oriented government, and excellent income tax policy-no income taxes-means the Bahamas is the perfect place to do business. To make things even better, Bahamian real estate is prime, as thousands of Americans, Europeans, and Asians are discovering that this sub-tropical heaven is the best place to buy their second home.

The Bahamas is perfectly located, being less than 100 miles of the coast of Florida. Only a few hours by ship or twenty minutes by plane, the Bahamas serves as the perfect location to build your second home and under new legislation, it is easy for foreigners to become permanent Bahamian residents.

The Bahamas has gained considerable credibility and recognition as a properly regulated environment for establishing and operating funds. Global fund managers recognize that the fund industry in The Bahamas is not only growing substantially, but it is considered one of the most competitive funds jurisdictions in the world in terms of quality of service, flexible legislation and tailor-made solutions for the client.


The Bahamas offers:

  • speedy registration procedures;

  • low establishment costs;

  • and minimal corporate or trust incorporation fees. 

The ability to launch new funds without the risk of bureaucratic delay has proven to be a major advantage for the Bahamas. Also there is the wide variety of investment fund vehicles types there. 

In the last five years the Bahamas has seen upwards of 60% growth in the number of investment fund registrations. According to the Investment Funds Act 2003,  The Bahamas goals to decrease the modern investment fund administration. The Bahamas is the heaven to more licensed investment funds than many of the leading hedge funds jurisdictions, and has no class of investment funds which is exempt from licensing or registration.

Usually the most popular solutions to register your fund are the following:

I. Bahamas Standard Fund (an investment fund where the investors could not redeem their interest or to require the fund to repurchase their interest)

Typical Package Includes:

  • company formation as a fund;

  • registered address;

  • registered agent fees;

  • government fees;

  • offering memorandum and subscription agreement;

  • ISIN number

Fund Registration Terms:

  • setup time 2-3 months;

  • no audit requirement;

  • no minimum investment required;

  • no restriction on number of investors.

From $30,000  

II. Bahamas Standard Segregated Accounts Company (SAC) Fund (with 1 SP)

Typical Package Includes:

  • company formation as a fund;

  • registered address;

  • registered agent fees;

  • government fees;

  • offering memorandum and subscription agreement;

  • ISIN number

Fund Registration Terms:

  • setup time 2-3 months;

  • no audit requirement;

  • no minimum investment required;

  • no restriction on number of investors.

From $33,500

 

III. Bahamas Standard Fund (Licensed)

Our services include:

  • company formation as a fund;

  • registered address;

  • registered agent fees;

  • licensing;

  • government fees;

  • offering memorandum and subscription agreement;

  • ISIN number

Fund Registration Terms:

  • setup time 2-3 months;

  • no audit requirement;

  • no minimum investment required;

  • no restriction on number of investors.

From $37,000 

IV. Bahamas Standard Segregated Accounts Company (SAC) Fund (with 1 SP) Licensed

Our services include:

  • company formation as a fund;

  • registered address;

  • registered agent fees;

  • licensing;

  • government fees;

  • offering memorandum and subscription agreement;

  • ISIN number

Fund Registration Terms:

  • setup time 2-3 months;

  • no audit requirement;

  • no minimum investment required;

  • no restriction on number of investors.

From $40,500

Astorts Bahamas 2.jpg



My company can provide the assistance with the Investment Manager Company formation for your Fund. The cost starts from $4,500. 

They may provide additional SP, nominee services, additional class of shares and registration for each class, bank account introducing, Fund Management Director services.

Undoubtedly, they have the strong and faithful connections with banks in all jurisdictions we work in and help you with the company account opening. Often the bank account can be opened without visiting of the country. 

To sum up, I dare to say that under the conditions of the changing and developing global market funds industry faces the huge demand and show growth in the number of investment fund registrations. And the Bahamas have all chances to become the great destination for you! Also our team could advise you about the fund management and tax systems in accordance with the law systems of the most attractive funds heaven. The journey to conquer this market is not an easy one, it requires a lot of time, effort and hard work, my team will be glad to help you cover all obstacles you can face on the road to success. 

ARP_3.jpg

Do you need my team help?

Please write me an email with your specific case or book a call, my team and I will be more than happy to help you to chose the best solution for your Investment Fund.