BAHAMAS Law and Practice Contributed by: Judith Whitehead KC, Graham Thompson
• public transportation inclusive of locally solic - ited charter boat tours; • landscaping; and • commercial motorised watercraft/commercial leisure boating activity. (International investors may engage in the wholesale distribution of any product the inves - tor produces locally.) The following sectors are open to foreign invest - ment; the list is non-exhaustive, and investors are encouraged to communicate their intended investment activity to the BIA: • touristic resorts; • upscale condominium, timeshare, and second-home development; • information and data processing services; • assembly industries; • hi-tech services; • mariculture (the salt-water farming of fish, other animals, and plants, with the purpose of human consumption); • banking and other financial services; • captive insurance; • aircraft services; • pharmaceutical manufacture; and • offshore medical centres. • ship repair and other services; • light manufacturing for export; • agro-industries; • food processing; In addition to BIA approval, Exchange Con - trol Regulations and policies may bear upon a particular transaction and in certain instances may require that foreign investment inflows are granted approval, that entities wholly or partial - ly owned by foreign investors are appropriately designated, and that “Approved Investment Sta - tus” is granted to foreign investors or lenders
with respect to their investment or loans. Over recent years (including in early 2024), the Central Bank of The Bahamas has taken various steps to simplify or ”relax” the Exchange Control regime and administrative arrangements, or to delegate authority for certain matters to local financial institutions, and a prudent investor or lender would want to obtain advice regarding what approvals may be required (or now dispensed with or delegated to local banks) in respect of their transaction. Investments in Property Subject to any exceptions in the International Person’s Landholding Act, non-Bahamians acquiring real property or having an interest in real property must first apply for a permit from the Investment Board. Eligibility for a permit includes a due diligence review of the intended purchaser. 2.2 Procedure and Sanctions in the Event of Non-Compliance Steps to Obtain Approval A foreign investor interested in undertaking a significant development project or commercial enterprise would, as a first step be required to obtain BIA approval to invest in a business within The Bahamas. Such application must be supported, in addition to routine due diligence materials on the applicant, by a detailed invest - ment proposal to the BIA. The proposal should include explicit details regarding the nature of the investment, the island on which the invest - ment/business would take place, due diligence and financial details regarding the beneficial owners, employment projections for Bahamians and non-Bahamians, whether work permits or any concessions under the relevant legislation are required, and whether the investment will include the acquisition of land.
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