BAHAMAS
Features of Bahamas’ Executive Entities (BEEs)
GOVERNING LAW
 Executive Entities Act 2011, Regulation 2012.
BUSINESS TRANSACTIONS
 BEEs are used as vehicles to carry out executive functions in private wealth structures. Section 2 of the Executive Entities
Act, 2011, defines such Executive Functions as :
´´ Any powers and duties of an executive, administrative, supervisory, and fiduciary and office holding nature,
including, but not limited to, the powers and duties of(i) An enforcer, protector, trustee, investment advisor and the holder of any other office of any trust, and
(ii) The holder of any office of any legal person
-
The ownership, management and holding of
(i) Executive entity assets
(ii) Trust assets ´´
TAXATION
 Executive Entities are not subject to any business license fee (unless they are conducting business in the Bahamas)
 Executive Entities are exempt from all form of taxation in Bahamas: income tax, capital gains tax or any tax on income or
distributions accruing to or deriving from the BEE or in connection with any transaction to which the BEE is a party.
GENERAL STRUCTURE
 Founder: The person or persons who subscribe their names to the charter establishing an Executives Entity.
 The founder can be either corporate entities or natural persons;
 May be appointed as an Officer or as a Council member.
 Executive Entity Council: The Council through its Council Members ensures that the E.E. and the officers comply with
the provisions of the Charter, Articles and the Act.
 Supervise the administration of the E.E. by the officers in the furtherance of the purpose;
 Ensure that the officers act in accordance with the instructions of the council.
 Any individual or legal person may be appointed as council member, unless they are Bankrupt, mentally
incapacitated, a convicted criminal, dissolved.
 Officers: The Officer duty is to administer the E.E. in the furtherance of its purpose.
An officer may be a natural or legal person with the exception of an undischarged bankrupt, mentally incapacitated
and a convicted of a crime.
 Officer and Council: In case where both officers and council have been appointed, the powers of the officers shall not
include those powers reserved to the council.
 Secretary: The appointment of a secretary is optional under the act.
 As an Officer, the secretary is restricted to carrying out the usual secretarial duties and shall not carry out any of the
statutory duties assigned to the Executive Entity Agent.
 The Agent: Before an Executive Entity is registered, the Founder shall appoint an Executive Agent – Mossack Fonseca
& Co (Bahamas) Limited.

The Executives Agent must fill the following requirement:
 Duly licensed as a provider of financial and corporate services under the Financial and Corporate Services
Providers Act or as a Trust company under the Bank and Trust Companies Regulation Act ; and

Has by himself, or by his agent authorized in writing, signed and delivered to the Founder ( before the Executive
Entity is registered) or to the Executive Entity (after the Executive Entity is registered) a consent in writing to act
as the Executive Entity Agent.
ANNUAL FILING / RECORDKEEPING
 The Bahamas Executive Entities are not required to file annual return;
 The Act requires the E.E to keep sufficient financial statements, accounts and records at the registered office or at such
other places the Executive Entity Council, or in case where no Council is appointed where the Officer thinks fit. For the
purpose accounting record shall explain:
o Correctly all transactions
o Enable the financial position of the company to be determined with reasonable accuracy at any time.
 Accounting records may be kept for a minimum period of five year from the date of the transaction to which such records relate.
 A E.E. is required to hold at least one (1) meeting of the Officers each year; written notice of seven (7) days must be
given to all Officers of the Annual Meeting and minutes of this meeting shall be kept.
 The Executive Entity Council and officers may hold their meetings in any country and may attend such meetings by
proxy or by any electronic means (phone, fax, etc.).
INCORPORATION AND ADMINISTRATION
 A statement signed by the Executive Entity Agent or the counsel and Attorney engaged in the formation of the E.E, which
provide a snapshot of the information contained in the Charter.
 A statutory declaration of compliance
 The prescribed fees
 The Charter and Articles may, but need not be, delivered to the Registrar.
 The act requires that the name of an Executives Entity include the words ´´Executive Entity´´ or the abbreviation of such
words to EE or E.E;
 No proposed Executive Entity shall be registered by a name which includes
o Foundation
o Limited
o Company
o Corporation
o Partnership
o A translation of any words conveying a similar meaning to foundation, limited, company, corporation or
partnership in the language or practice of any other country; or
o An abbreviation of any.
o Chamber of commerce, Bank, Co-operative, Building Society, Insurance, Stock Exchange or Trust.
 No minimum level of assets is required;
 Usually Incorporated on one business day.
REGISTERED OFFICE/ CONTINUATION
 An Executive Entity shall have a registered office in Bahamas which shall be the address of the Executive Entity Agent,
to which all communications and notices may be addressed;
 As the Bahamas Executive Entities are part of a pioneering legislation, the option to continue to other jurisdictions has
not yet contemplated under the regulations;
 Apostille is normally used to legalize documentation;
 Corporate Seal is not mandatory.
COSTS AND FEES
 Reasonable formation and maintenance costs and fees
 The initial registration fee will vary according to the quarter of a calendar year:
(a) First quarter of a calendar year
$550.00
(b) Second quarter of a calendar year
$400.00
(c) Third quarter of a calendar year
$275.00
(d) Fourth quarter of a calendar year
$150.00

The annual government license fee for an Executive Entity whose name is on the Register on December 31 in any year shall:
(a) Before April 30th of the following year pay to the Registry an Annual fee of
$ 500.00
(b) Before October 31th of such year pay an increased Annual fee of
$ 550.00
(c) After October 31th of such year pay an increased Annual fee of
$ 750.00
USE OF THE BAHAMAS EXECUTIVE ENTITY
 Protector
 Family governance structure
 Ultimate shareholder in a family holding structure
 Director or council member in a fiduciary structure
 Settlor or Founder
HIGHLIGHTS OF THE BAHAMAS
 No taxes levied on international and banking transactions.
 No exchange control regulations.
 Political and economic stability
 Serviced by major world airlines.
 Excellent hotel accommodations.
 Excellent worldwide communication facilities.
DOCUMENTS REQUIRED TO BE KEPT AT MOSSACK FONSECA & CO. (BAHAMAS) LIMITED OFFICE, IN
ACCORDANCE WITH THE LAW.
The following information/documents are required to be kept at the registered office of the E.E:
 Due diligence documents, as required;
 Appropriate character references;
 Charter and Articles and all amendments, if any;
 Originals or accurate copies of :
o All notices and documents delivered to the Registrar;
o Any assignments and consents to assignments of the Founder’s powers and obligations under the Act, the Charter
or the Articles;
o Written consents to the appointments of the officers and the council members;
o The minutes of meetings and written resolutions of the officers (if any) and the council members (if any);
o Other notices or documents required to be delivered to the E.E under the Act.
SOCIAL AND ECONOMIC INDICATORS
Location:
Area:
Population:
Climate:
Official Language:
Government:
Living Standard:
Banking:
Legal Tender:
Industry:
40 - 60 miles east of Florida (U.S.A.)
700 islands comprising 5,358 square miles. Most Bahamians live in the two major urban
centres: Nassau and Freeport.
307,451 (2009 est.)
Tropical
English
Parliamentary Democracy. Member of the British Commonwealth recognizing Queen Elizabeth II
as head of state.
High
Worldwide banking facilities available.
Bahamian dollar, which is on a par with the U.S. dollar
Tourism, financial services and small industries.
MOSSACK FONSECA & CO. (BAHAMAS) LIMITED
BAH. JAN.2014-LC
Mossfon Building, East 54th Street
P.O. Box 0832-0886, W. T. C.
Panama, Republic of Panama
T 011 (507) 205-5888 / 206-9400
F 011 (507) 263-9218 / 263-7914
011 (507) 263-7327
E [email protected]