BAHAMAS INVESTMENT POLICY

Economic Policy

The Government of the Commonwealth of The Bahamas is committed to building an economic environment in which free enterprise can flourish; where the Government assumes its proper role as regulator and facilitator of economic development; where the ideals of transparency, fair play and equality of treatment are paramount; and a policy that maintains a stable society in which all people are afforded the opportunity to realize their maximum potential.

In this regard, the National Investment Policy is designed to support an investment friendly climate; guarantee the complimentarity of Bahamian and overseas investments; foster appropriate linkages with all sectors of the economy, in particular, the tourism and financial services sectors; encourage the exploitation of our natural resources in an environmentally sound and sustainable manner; provide for the maximum level of employment; guarantee an acceptable level of economic security and generally foster the economic growth and development of The Bahamas.

To undergrid the National Investment Policy the Government provides:

· A politically stable environment conducive to private investment

· An atmosphere where investments are safe and the expropriation of investment capital is not a considered option

· A legal environment based on a long tradition of parliamentary democracy, the rule of constitutional and statute laws and where security of life and personal property are guaranteed

· A stable macroeconomic environment bolstered by a prudent fiscal policy, a stable exchange rate, flexible exchange control rules and free trade

· An environment in which freedom from Capital Gains, Inheritance, Withholding, Profit Remittance, Corporate, Royalties, Personal Income, Dividends, Payroll and Interest taxes is ensured

· Essential public services, an adequately equipped police constabulary, modern health and education facilities and other social services

· Dependable public utilities; and

· Essential public infrastructure such as roads, ports and airports.

 

International Financial Centre

The Government is committed to enhancing the image of The Bahamas as an international financial centre. To this end the Government will:

Investment incentives under the relevant Acts include exemption from the payment of customs duties on: building materials, equipment and approved raw materials, business licensing fees and real property taxes, for periods up to twenty years:

Executive management of the Investment Policy is resident in the National Economic Council (NEC), headed by the Prime Minister; operational activities are the responsibility of the Bahamas Investment Authority (BIA).

An international investor seeking to do business in The Bahamas should be prepared to submit to BIA, through his attorney or other Bahamian representative, a detailed project proposal, along with supporting documents, as follows:

* Name

* Address –include telephone/fax 

* Description of Proposal:
   an executive summary of project

* Type of Business: state whether entity is
  share company, partnership, individual
  or joint venture

*Principals – persons investing in the
  venture or major beneficial shareholders

* Proposed Location

* Land or Factory Space

* Requirements

* Proposed Start Up Date

* Management/Personnel Requirement – years of experience, training, success of
  similar previous or current activity; work permits (if any) required for key
 personnel Employment Projections – number of Bahamian and non-Bahamian
  employees

* Financial Arrangement – for project include Bank Reference

* Environmental Impact – toxic waste, disposal procedures; toxic input

* Concessions Sought – Customs Duty Exemptions

* Investment Incentive – if applying under a particular Act or programme

* Local Representative – attorney, accountant or agent.

Holowesko & Company is experienced in the presentation of such proposals to Government, and is committed to the promotion of its clients' projects, through to acceptance by Government.

General

To ensure the maximum benefit to The Bahamas from the National Investment Policy, certain immigration provisions will apply: