Establishing a Securities Firm in The Bahamas in 2025
The Bahamas has steadily built a strong reputation as a prominent international financial center within the Caribbean region. With a mature and diversified financial services sector, the country offers a comprehensive suite of financial products and services, including private and commercial banking, investment funds, capital markets, and insurance. Its strategic geographic location, political stability, and favorable regulatory environment have attracted numerous global financial institutions. These institutions benefit from the jurisdiction’s progressive legal framework, skilled workforce, and commitment to international compliance standards, making The Bahamas a compelling choice for firms seeking to operate in or expand into the Caribbean market.
At the core of this robust financial ecosystem is the Securities Commission of The Bahamas (SCB), the primary regulator responsible for overseeing and developing the securities and capital markets. The SCB plays a vital role in maintaining the integrity and stability of the financial system by enforcing regulatory standards that align with global best practices. Its proactive approach to supervision, investor protection, and risk-based regulation fosters confidence in the marketplace and supports the sustainable development of the sector. By encouraging innovation while upholding transparency and accountability, the SCB contributes significantly to The Bahamas’ growth.
In this article, the SALVUS Investment Firms Licensing team delves into the benefits of obtaining a Securities Firm License in The Bahamas and the different categories of licenses available, expanding on the below:
1. Why obtain a Securities Firm License in The Bahamas?
2. License Categories & Authorised Activities
3. Regulatory Capital Requirements
4. Licensing Timeframe
5. How SALVUS can support your licensing application
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1. Why obtain a Securities Firm License in the Bahamas?
Establishing a securities firm in The Bahamas under the oversight of the SCB presents numerous strategic advantages, particularly in light of the country’s growing reputation as a forward-looking financial and fintech hub. The Bahamas has positioned itself at the forefront of financial innovation, becoming one of the first jurisdictions globally to introduce a Central Bank Digital Currency (CBDC), known as the ‘Sand Dollar’. This pioneering step highlights the nation’s commitment to embracing digital finance and fostering a regulatory environment that supports innovation while maintaining financial stability. Such a progressive outlook makes The Bahamas especially attractive to firms involved in digital assets, fintech solutions, and next-generation financial services.
A key driver of the Bahamas’ appeal to international securities and fintech firms is its favorable tax regime. The absence of corporate income tax, capital gains tax, and withholding tax provides a competitive edge for companies seeking operational efficiency and tax optimization. Coupled with this is the SCB’s robust and transparent regulatory framework, which is grounded in global best practices and focused on investor protection and market integrity. The Commission ensures that all licensed entities operate with accountability and in full compliance with international norms, creating a secure and trustworthy environment for securities activities. This blend of regulatory excellence, tax advantages, and fintech readiness positions The Bahamas as a prime destination for firms looking to establish or expand their presence in the global financial landscape.
2. License Categories & Authorised Activities
Securities firms can adopt a range of business models that align with their strategic objectives, client base, and operational strengths, offering services that span across different segments of the capital markets. Their structure is largely determined by the specific activities they are licensed to conduct, as defined by the Securities Commission of The Bahamas (SCB). These firms fall into one or more of four main regulatory categories:
- Dealing as agent or principal
- Managing Securities
- Advising on Securities
- Arranging deals in securities
The table below outlines the specific authorised activities available under each category:
| License Category | Authorised Activities |
|---|---|
| Dealing as agent or principal | This includes: (i) buying, selling, subscribing for or underwriting securities as an agent, (ii) buying, selling, subscribing for or underwriting securities as principal where the person entering into that transaction: (a) holds himself out as willing as principal, to buy, sell or subscribe for securities of the kind to which the transaction relates at prices determined by him generally and continuously rather than in respect of each particular transaction, (b) holds himself out as engaging in the business of underwriting securities of the kind to which the transaction relates or, (c) regularly solicits members of the public with the purpose of inducing them, as principals or agents, to buy, sell, subscribe for or underwrite securities and such transaction is entered into as a result of such person having solicited members of the public in that manner |
| Arranging deals in securities | Making arrangements with a view to: (i) another person (whether as a principal or an agent) buying, selling, subscribing for or underwriting securities or (ii) a person, who participates in the arrangements, buying, selling, subscribing for or underwriting securities. |
| Managing securities | Managing securities belonging to another in circumstances involving the exercise of discretion. |
| Advising on securities | Advising a person on securities if the advice is: (i) given to the person in his capacity as an investor or in his capacity as agent for an investor or potential investor and (ii) advice on the merits of his doing any of the following (whether as principal or agent): (a) buying, selling, subscribing for or underwriting a particular security or (b) exercising any right conferred by a security or buy, sell, subscribe for or underwrite a security |
Contact us at info@salvusfunds.com if you are interested in establishing a Securities Firm in The Bahamas; our Investment Firms Licensing team is ready to answer your questions.
3. Regulatory Capital Requirements
A securities firm licensed under SCB is obligated to maintain adequate financial resources at all times, ensuring its ability to operate responsibly and sustainably within the regulatory framework. This means the firm must have sufficient capital not only to cover its ongoing business commitments—such as operational costs, contractual obligations, and client servicing requirements—but also to withstand the financial risks inherent in its business model. The firm must also be able to meet any specific financial thresholds or prudential requirements prescribed by the SCB under applicable laws or policies. Below are the capital requirements set out under Securities Industry Regulations.
| Type of License | Capital Requirement |
|---|---|
| Class I broker-dealer | at least $300,000 of regulatory capital |
| Class II broker-dealer | at least $120,000 of regulatory capital |
| Class III broker-dealer | $60,000 of regulatory capital |
| Class IV broker-dealer | $25,000 of regulatory capital |
| Securities Investment Advisor | $25,000 of regulatory capital |
“Regulatory Capital” means cash and cash equivalents, money market funds held in The Bahamas, market value of securities of the Government of The Bahamas less 10%, and the market value of securities listed on a securities exchange.
4. Licensing Timeframe
Typically, the completion of the application process is estimated to be between 3 to 4 months. However, this duration depends on the completeness and quality of the information provided, as well as the applicant’s ability to present a well-defined business plan.
5. How SALVUS can support your licensing application
At SALVUS, our Investment Firms Licensing team is dedicated to delivering a fully customized approach to regulatory licensing, designed to align precisely with the distinct characteristics and strategic objectives of each client. We recognize that every business model is different—whether focused on brokerage, asset management, advisory services, or fintech solutions—so we begin the process with a deep dive into your firm’s vision, operations, and intended market positioning. This allows us to accurately determine the most suitable licensing category under the applicable regulatory framework, such as those defined by the SCB, and provide clear guidance on the associated compliance obligations, capital requirements, and ongoing regulatory expectations.
From there, our team collaborates closely with your internal stakeholders to gather all necessary documentation, draft policy frameworks, and prepare the application package to meet the regulator’s exact standards. Leveraging our long-standing experience in financial regulation, we act as the key intermediary between your firm and the regulatory authority, ensuring proactive communication, rapid issue resolution, and transparent updates throughout the licensing journey. Our objective is not only to secure your license efficiently but to also position your firm for long-term compliance and operational success in your chosen jurisdiction. By managing both the strategic and procedural aspects of the process, SALVUS delivers a seamless licensing experience with a strong foundation for regulatory confidence.
If you’re considering establishing a Securities Firm in The Bahamas, our dedicated Investment Firms Licensing team is here to guide you every step of the way. For expert advice and personalized support, reach out to us at info@salvusfunds.com—we’re ready to answer your questions and help turn your plans into a compliant and successful reality.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.