It takes on average 21 days to start a business in The Bahamas and costs approximately $3,300, according to The World Bank’s Ease of Doing Business Index.
Although that time frame is better than the average time to start a business in Latin America and The Caribbean, which is 28 days, it is far longer than the nine days it takes on average to start a business in high-income Organisation of Economic and Cooperative Development (OECD) countries.
“The measure captures the median duration that incorporation lawyers indicate is necessary to complete a procedure with minimum follow-up with government agencies and no extra payments,” the World Bank explained of its methodology.
There are seven procedural steps that are required to start a business in The Bahamas that the World Bank assessed, with the most lengthy procedure being the registration of a company for a business license and a value-added tax (VAT) identification number (TIN), which takes 15 days.
In comparison, the time it takes to register a company for a business license in Barbados takes seven days; the time to register for VAT in Trinidad and Tobago is seven days; the time to register a company in St. Lucia is six days with just one additional day to obtain taxpayer identification; and it takes a total of three days to start a business in Jamaica.
Additionally, it costs on average $3,325.38 – or 11.4 percent of the gross national income (GNI) per capita – to start a business.
The World Bank used a GNI per capita of $29,170 for The Bahamas.
Cost is recorded by the World Bank as all official fees and fees for legal or professional services required by law for married men and women.
Overall The Bahamas received a score of 84 percent on the World Bank’s Ease of Doing Business Index, which is five points higher than the regional standard of 79 percent.