Bahamas Foundations

The Bahamas Foundation was introduced with the enactment of The Foundations Act, 2004. As with all legislation, it has undergone some amendments, principally in 2005 and 2007. There is great flexibility under the Foundations Act, 2004 as to who can act is these capacities. As an example, the Foundation Council does not have to be comprised of Bahamas resident members, nor does the office of Protector have to be provided by a Bahamian. Rather, the only caveat is a Bahamas based service provider must act in the capacity of Secretary or Foundation Agent. This service provider, by virtue of acting in this position, also provides the Registered Office of the Foundation.

The Foundation’s governing document is the Foundation Charter. As with a Trust Deed or Articles of Association of a Company, the Foundation Charter sets out the parameters within which the Foundation must be managed and governed. As an example, and importantly, the Charter deals with Founder retained powers; appointment and removal of the foundation’s officer(s), foundation council members, protector(s), beneficiaries; investment powers; dispositive provisions and provisions regarding the amendment and revocation of the charter.

The Foundation Charter can also be supplemented by the addition of Foundation Articles. The Foundation Articles can be used to provide further information around the identity of the beneficiaries, how and when they can benefit and the regulation of any governing body of the Foundation. Once the documentation has been prepared, registration is a straight-forward process. In essence, the Secretary or Foundation Agent provides a synopsis of the Foundation Charter (the Founder’s name is not disclosed) to the Registrar General’s Department, along with a statement that the Foundation will maintain a minimum asset value of US$10,000, and the Foundation complies with all the provisions of the Foundation Act, 2004. The Registrar General will then issue a Certificate of Registration.