Is Your Contract Enforceable in The Bahamas?

If you have a written contract for business services, you will want to make sure that your contract is legally enforceable in The Bahamas. You can enforce a contract through the court if the other party is not following the contract terms. Without a written contract or with only a verbal contract, you may face difficulties in trying to enforce it.

What Is a Contract?

A contract is an agreement between two or more people to do something or not do something. The agreement must consist of an offer by one person and an acceptance by the other. In addition, you need consideration – something of value that passes between the contracting parties in exchange for making the contract. This could be money, goods, services, or something intangible. Finally, you need mutual assent to the contract.

How Do You Enforce a Contract?

Courts may enforce all sorts of contracts, including verbal contracts and written contracts. Sometimes, the court even may enforce an agreement that is not truly a contract in the strict sense in the interests of justice. In most cases, though, it is good practice to prepare a well written agreement that follows general legal principals from the beginning. Then if you do need to go to court, you are likely to be in a stronger position to enforce the terms of the contract.

First, your contract should be in writing if at all possible. Having a written agreement makes the subject and extent of the contract clearer and allows the parties to reference written terms if there is a dispute. The agreement should include all of the terms and conditions of the parties’ agreement, with additional documents attached as exhibits if needed for clarity.

Further, a contract should explain who the parties are, what they are exchanging, and how it will be exchanged. A contract does not need to have fancy language – in fact, plain language is often clearer. A lawyer can help you by preparing a basic contract to meet your needs.

Finally, you may want to include a dispute resolution section in your contract. This section specifies what the parties must do if they have a dispute. For example, a contract might require mediation before the parties can go to court. It also could specify arbitration and or a court in a particular location, such as The Bahamas.

To find out more about contracts, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.

The hiring of an attorney is an important decision that should not be based solely upon the information contained in this website.  This website is designed for general information purposes only and the information provided should not be construed to be formal legal advice nor the formation of an attorney/client relationship.

Relocating Your Business to The Bahamas? What You Need to Know

If you are thinking about relocating your business to The Bahamas, you can start preparing now. You may need to meet any number of legal requirements and budget for different kinds of expenses than before.

Entity Choice in The Bahamas

Business owners who plan to form new entities in The Bahamas when relocating here should look into entity choice. Bahamian law permits formation of many kinds of entities depending on your needs, such as:

  • Bahamian company under the Companies Act
  • International Business Company (IBC)
  • Limited liability company
  • General partnership
  • Limited liability partnership

There are many more options as well. International business companies are a popular choice for entities that will be operating both in and outside The Bahamas. If you want to continue to use your existing business entity from another location, you can do that too. You should, however, seek legal advice about your obligations in the other location, as well as any special requirements you must meet here.

Business License and Taxes

Anyone operating a business in The Bahamas and anyone who owns such as business must have a business license. Essentially, the license informs the government that your business exists for regulatory and tax purposes. While there is no corporate income tax in The Bahamas, there are a number of other possible taxes that businesses face. These include the value added tax, which is assessed on many services and purchases both in The Bahamas and from other places.

Investment Incentives

The government of The Bahamas offers certain investment incentives for non-Bahamians who put money invest in companies here. These incentives are available for specific kinds of projects often involving development or construction. You may want to look into whether your business qualifies.

To find out more about running a business in The Bahamas, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.

The hiring of an attorney is an important decision that should not be based solely upon the information contained in this website.  This website is designed for general information purposes only and the information provided should not be construed to be formal legal advice nor the formation of an attorney/client relationship.

Moving to The Bahamas? What You Need to Know

Moving to The Bahamas creates several questions and issues from a legal perspective. If you are making the move or have newly made a move here, you should make sure to comply with your legal obligations and understand the differences between Bahamian laws and those from your previous home.

Work Permits

You may have a very hard time finding a job after you move here, as the immigration laws are strict. Most people move to The Bahamas with a job already secured because of the work permit requirements. You cannot apply for a work permit yourself – your new employer must complete and submit the application to employ you. Further, you may only receive a work permit if you can show that no Bahamian can do your job. Work permits cost more depending on your job, and can cost up to tens of thousands of Bahamian dollars at the higher end of the scale. You usually must renew your work permit every year.

Permanent Residency

Permanent residency can take one of two forms: (1) economic permanent residency (EPR) in The Bahamas which typically does not include a right to work in The Bahamas, or (2) permanent residency with the right to work.. People who purchase homes for B$500,000 or more receive priority in the EPR application process. Alternatively, you could apply for an annual residence classification or a homeowner’s residence card.

Taxes

Taxes in The Bahamas may be different than in your previous home. You can expect:

  • No income taxes in The Bahamas
  • No capital gains taxes in The Bahamas
  • No estate or inheritance taxes in The Bahamas
  • A value added tax (VAT) on most goods and services, including those purchased elsewhere and brought into The Bahamas
  • Annual real property taxes on real estate owned in The Bahamas
  • A 10 percent stamp tax if you purchase a new home
  • Customs duties on items imported into The Bahamas

As a result of customs duties and VAT, importing items can be costly. However, you may find that some items are not available locally or there may be less variety.

To find out more about laws in The Bahamas, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.

The hiring of an attorney is an important decision that should not be based solely upon the information contained in this website.  This website is designed for general information purposes only and the information provided should not be construed to be formal legal advice nor the formation of an attorney/client relationship.

Advantages of the Bahamian Financial Services Sector

The Bahamian financial services sector holds many advantages for people interested in investments and financial growth. From a legal perspective, The Bahamas offers opportunities for businesspersons in the areas of choice of business entity, regulation, and taxes.

Entity Choice in The Bahamas

The Bahamas allows significant flexibility in choice of entity for businesses in the financial services sector. Some types of businesses, such as banks and insurance companies, must have a corporate structure. They can choose whether to form a Bahamian company under the Companies Act or an international business company (IBC).

Other types of businesses can organize as limited liability companies, unlimited liability companies, sole proprietorships, joint ventures, general partnership, limited liability partnership, undisclosed partnerships, segregated account companies, subsidiaries, branches, or representative offices. In addition, there are several different available structures for investment funds.

Business Regulation in The Bahamas

Regulation of the financial services sector in The Bahamas is robust with policy makers and regulators striving to enforce international norms through laws penalizing money laundering and requiring financial services companies such as banks to vet accountholders.

Further, recent reforms in investment fund sector laws serve to improve the regulatory environment in The Bahamas as they modernize the sector while incorporating international best practices.

Taxes in The Bahamas

Finally, the tax environment in The Bahamas may benefit many financial services companies and businesses. Tax benefits include:

  • No corporate income tax
  • An affordable business licence tax for companies doing business here
  • No income, capital gains, or estate taxes for Bahamas residents and people conducting business here
  • A reasonable value added tax (VAT) for imported goods and local purchases and services

In short, many factors make The Bahamas an attractive choice for financial services organizations from a legal perspective.

To find out more about financial services in The Bahamas, visit Gonsalves-Sabola Chambers online or call the office at +1 242 326 6400.

The hiring of an attorney is an important decision that should not be based solely upon the information contained in this website.  This website is designed for general information purposes only and the information provided should not be construed to be formal legal advice nor the formation of an attorney/client relationship.

Categories

TOP