Company Registration
1 Week
Local Director?
No
Bank Account Opening
4 Weeks
Travel Required?
No
Excellent
Based on 87 reviews
Bahamas PSP license
- The Bahamas PSP license is a must-have regulatory permit for companies looking to run as Payment Service Providers in this booming economic center. As the Payment Service Provider market around the world is expected to expand from US$47.6 billion in 2023 to US$142.6 billion in 2033, with a Compound Annual Growth Rate of 11.6%, obtaining this license presents great opportunities for companies to tap into the growing digital payments economy.
- The Bahamas, which is renowned for its business-friendly climate and strong regulatory system under the Central Bank, has emerged as a preferred location to register company in Bahamas for PSP operations. Through this guide, we at Tetra Consultants will discuss the process, advantages, and requirements for acquiring a PSP license in Bahamas.
- Our service package includes:
- Bahamas company registration
- Company secretary
- Registered address service
- License application assistance
- Corporate bank account opening
What is a Bahamas PSP license?
- A Bahamas PSP license is a formal permit issued by the Central Bank of The Bahamas to organizations that desire to conduct activities as Payment Service Providers in the jurisdiction. It enables businesses to carry out a number of payment-related transactions, such as money remittance, payment processing, issuing and acquiring payment instruments, and making fund transfers.
- The PSP license in Bahamas is different from Electronic Money Institution (EMI) licenses in that it does not usually involve digital currencies or the holding of client funds for extended periods. It is meant to ensure safe and efficient financial activities, providing businesses with a sound framework for undertaking payment services internationally while enjoying the Bahamas’ zero tax on offshore earnings and stable economic climate.
Advantages of obtaining Bahamas PSP license
Conducive tax environment
- One of the greatest benefits of having a PSP license in Bahamas is the lack of corporate tax and capital gains tax. This tax-haven regime enables companies to keep more of their earnings, making it a popular choice for companies that want to maximize their bottom line. The absence of taxation on offshore earnings can result in huge savings, boosting the overall profitability of payment service providers in the area.
Fewer stringent regulatory requirements
- The Bahamian regulatory framework is relatively more relaxed compared to most traditional finance jurisdictions. It makes it easy for payment service providers to conform to compliance and lower the operating burdens, accelerating market entry. The simplified regulation process can even promote innovation such that companies are able to realign their services faster according to market needs.
Access to world markets
- A PSP license in Bahamas offers operators a respected platform on which to carry out payment-related business across the globe. The recognition can allow for smoother collaboration with global financial institutions and access to more customers. With businesses increasingly looking for cross-border payment solutions, a good license builds credibility and trust among prospective customers.
Stable political and economic environment
- The Bahamas has a stable political environment and an established financial system, which are essential for companies in the financial services industry. This stability not only gives assurance to investors but also guarantees continuity of operations, minimizing risks from political or economic instability that might impact business operations.
Varied financial services products
- With a PSP license in the Bahamas, businesses can provide a variety of services such as money remittance, payment processing, and electronic funds transfer. This versatility enables businesses to meet the diverse needs of their customers and change their product portfolios as market trends shift. Offering full-fledged payment solutions can improve customer satisfaction and loyalty.
Timeline for obtaining Bahamas PSP license
- Engaging with Tetra Consultants to acquire a Bahamas PSP license entails a streamlined process aimed at helping you enter the payment services industry in an efficient manner. First, after receiving the required documents, Tetra Consultants will help you register company in Bahamas in only 5 days. At the same time, our experts will prepare necessary documentation, as well as ensure compliance with regulatory standards.
- Once documentation and registration of the company is done, we will present preliminary documents and schedule a pre-application meeting with the respective authorities to initiate the licensing process. After this meeting, our specialists will draft and submit PSP license application to regulators. Assuming everything goes as planned, we project that the process of approval will last between 3 to 4 months.
- Once the PSP license has been obtained, Tetra Consultants will provide you with corporate bank account for your Bahamian entity. The process will take another 4 weeks. Overall, our step-by-step method will have your company up and running in about 4 to 5 months from when the engagement has begun, enabling you to take advantage of opportunities in the expanding payment services industry quickly.
Regulatory authority to obtain Bahamas PSP License
- The Central Bank of The Bahamas is the regulatory body that grants the Bahamas PSP (Payment Service Provider) license. The Payment Systems Act, 2012, and the Payment Instruments (Oversight) Regulations, 2017 regulate the process of licensing. The legislation creates a strong framework for the regulation of payment service providers, aligning with global standards for anti-money laundering (AML) and counter-financing of terrorism (CFT). The Central Bank regulates the licensing process, enforces compliance, and ensures that licensed institutions have high levels of efficiency and transparency in their operations.
- Under such regulations, Bahamian payment service providers are allowed to conduct business like money remittance, payment processing, issuing and acquiring payment instruments, and fund transfer. The applicants have to fulfill certain requirements, such as having a minimum paid-up capital of US$100,000 and having a local presence with a minimum of three employees in critical positions: CEO, Compliance Officer, and Money Laundering Reporting Officer. Audited financial statements annually have also to be filed in accordance with International Financial Reporting Standards (IFRS).
- The Central Bank has an important role in advancing consumer protection, privacy, and effective management of payment systems. Applicants must book a pre-application meeting with the Payments Unit of the Central Bank’s Research Department prior to making a formal application. This ensures that the initial requirements are fulfilled and smooths the process of licensing.
Activities allowed in Bahamas PSP license
- PSP license in Bahamas permits businesses to conduct a range of payment-related activities, with an all-encompassing framework for financial services institutions. In particular, licensed Payment Service Providers (PSPs) are authorized to conduct the following activities:
Processing of payment transactions:
- PSPs are permitted to process payments for goods and services, enabling the transaction between consumers and merchants on various platforms, such as e-commerce.
Issuance and acquisition of payment instruments:
- This entails the option of issuing payment cards and other products that can be used to facilitate payments by the users. The PSPs are also allowed to purchase the products from a third party for further services offered.
Sending funds:
- Authorized PSPs may enable domestic and cross-border money transfers, allowing customers to send and receive money safely and effectively.
Carrying out due diligence:
- PSPs must carry out Know Your Customer (KYC) checks and suitability assessments to meet anti-money laundering (AML) compliance requirements.
Types of Bahamas PSP license
Full PSP license
- The Full PSP License gives businesses the freedom to carry out a wide range of payment activities. This covers processing payments for services and products, conducting money remittance transactions, and issuing or acquiring payment instruments like credit cards and debit cards. These companies can operate both locally and abroad, with a complete range of payment solutions. The regulatory structure of this license is controlled by the Payment Systems Act, 2012, and the Payment Instruments (Oversight) Regulations, 2017, under the requirement of compliance with international norms for anti-money laundering (AML) and countering the financing of terrorism (CFT).
E-Money issuer license
- The E-Money Issuer License authorizes companies to issue electronic money, allowing them to offer digital wallets and prepaid cards. The license is especially suitable for companies wanting to enable cashless payments and store value electronically. Licensed companies have to comply with certain regulation requirements, such as holding sufficient financial reserves and ensuring electronic money has complete backing in the form of deposits in a custodian account. The Central Bank monitors compliance in order to safeguard consumers and maintain the integrity of the financial system.
Payment facilitator license
- The Payment Facilitator License is intended for companies acting as middlemen for payment processing on behalf of merchants. The license enables companies to handle payment flows and provide complementary services like fraud detection and transaction monitoring. Payment facilitators are important in streamlining the payment process for merchants and enabling them to accept different types of payments.
Steps for obtaining Bahamas PSP license
Step 1: Company registration
- Initially, Tetra Consultants will help you register a Bahamas company within five business days upon receipt of the required documents. This involves reserving the name of the company, drafting incorporation documents, and ensuring compliance with local regulations like the appointment of at least one director and a shareholder. We will also make sure that your company structure complies with the Central Bank’s rules.
- Additionally, we also provide international trademark registration services to our clients for securing their brand name globally.
Step 2: Preparation of licensing documents
- Further, we proceed with the preparation of licensing documents. Our experts shall carefully prepare every document necessary to be included with the licensing application. This ranges from preparing a comprehensive business plan that details your business strategy, target market, and financial projection.
- In addition, we will create detailed AML/CFT policies that suit your business model and ensure that all supporting documents are up to the regulatory requirements of the Payment Systems Act, 2012, and the Payment Instruments (Oversight) Regulations, 2017. Our experience guarantees that your documentation is complete and compliant.
Step 3: Local office setup
- Tetra Consultants will help with local office setup following document preparation. A physical presence in the Bahamas is required by regulations for the granting of a PSP license. We can assist you in finding a fitting office location and arrange the employment of at least three local staff members to handle key positions: Chief Executive Officer (CEO), Compliance Officer, and Money Laundering Reporting Officer. Not only is this compliance with laws, but this also provides you with a better operational setup in the region.
Step 4: Arranging a pre-application meeting
- After your business is registered and your paperwork is ready, we will schedule a pre-application meeting with the Central Bank’s Research Department’s Payments Unit. This meeting is important because it enables us to sit down and discuss your application with the regulators, resolve any initial issues they may have, and ensure all of the requirements are in place prior to actual submission. Our precedent building relationship with the regulatory bodies can be of great assistance at this point.
Step 5: Submission of license application
- Once any issues raised in the pre-application meeting have been resolved, our professionals will then go ahead and lodge the PSP license application. We will gather all required documents and make an application to the Central Bank on your behalf. During this process, we will monitor progress closely and have open communication with regulatory bodies to resolve any questions or additional requests quickly.
Step 6: License approval
- Once the application has been submitted, we expect the license approval process to be ready within 3 to 4 months. Tetra Consultants will make sure your application meets all regulatory requirements in order to avoid delays. We continue to strive to give you timely updates regarding the status of your application during this waiting period.
Step 7: Corporate bank account opening
- Upon obtaining your PSP license, Tetra Consultants will help with corporate bank account opening for your Bahamian company. This is necessary for efficient transactions and efficient financial management. Our banking specialist will assist you in opening the account, which, on average, takes an extra 4 weeks. We will help prepare all required documentation to be submitted to the bank for faster handling.
Documents required for Bahamas PSP license
- Notarized copies of valid Passports or all directors and shareholders.
- Memorandum and Articles of Association (M&A) that include clauses allowing for the establishment of a Bahamas company.
- A detailed business plan.
- Proposed corporate name of the money transmission business.
- Corporate registry listing all directors, shareholders, auditors, and company secretaries, certified as true copies.
- Certificate of Incorporation, certified as a true copy.
- Certificate of Registered Address of the Company, certified as a true copy.
- Resolutions appointing the authorized person to act on behalf of the company and to invest in the Bahamas branch, both certified as true copies.
- Business and personal address of each individual applicant including mailing address
- A letter from a bank confirming the banking relationship and financial standing of the directors or shareholders.
- A reference letter from a lawyer, auditor, or notary public attesting to the credibility and background of the directors or shareholders.
- A letter from a bank stating that at least one shareholder maintains a minimum balance, demonstrating financial stability.
- Detailed CVs for all directors and shareholders outlining their educational qualifications and work experience.
- Certificates verifying the educational qualifications of directors and shareholders.
Regulatory requirements for Bahamas PSP license
- A physical office in Bahamas.
- At least one director from any nationality,
- At least one shareholder from any nationality, and;
- At least one compliance officer from any nationality.
- A minimum share capital of US$100,000.
- The company must nominate at least two senior officers who are fit and proper persons and residents in The Bahamas. They shall run the day-to-day activities and monitor compliance with regulatory requirements.
- Companies must establish and maintain effective Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CFT) policies. The Financial Transactions Reporting Act must be complied with.
- Applicants should pay a refundable deposit in a trust account of an institution that has been approved by the Central Bank.
- Payment service providers should have proper insurance coverage as prescribed by the Central Bank, depending on the size of their business.
- An elaborate business plan setting out operations strategy, finances projections, and market concentration will have to accompany the application process.
- Companies should establish an effective fraud prevention and risk management system to protect payment transactions.
- Payment service providers are required to keep proper records of transactions for at least five years from the date of performance.
Cost of obtaining Bahamas PSP license
- When looking at the cost of acquiring a Bahamas PSP license with Tetra Consultants, it should be mentioned that our method places great importance on transparency and transparency throughout the procedure. We ensure that you know all the charges involved in an explicit manner at every step of the way.
- The fees for acquiring the PSP license in Bahamas are usually application and administrative charges levied by the Central Bank of The Bahamas. There could also be annual operational license charges that have to be planned for continuous compliance. Tetra Consultants will assist you in navigating these requirements, explaining the financial obligations required for keeping your license.
- In addition, our services include the preparation of critical documentation, which can entail additional expenses associated with legal and compliance assistance. We will also help establish a local office and recruit key staff, which can be part of the overall cost.
- We at Tetra Consultants strive to establish a close association with our clients. Hence, we will see to it that you are thoroughly informed about all the financial considerations that go into getting your PSP license. Our commitment to openness enables you to plan and make sound decisions effectively as you proceed with the licensing process.
How can Tetra Consultants help in obtaining Bahamas PSP license?
- Engaging Tetra Consultants to acquire a Bahamas PSP (Payment Service Provider) license provides many benefits that simplify the whole process and maximize your probability of success. Our professionals have a lot of experience in dealing with the regulatory process, guaranteeing that you are fully compliant with all requirements in an effective manner.
- We offer end-to-end support from the very beginning, including Bahamas company incorporation, which is essential for setting up your business in the Bahamas. Our specialists draft all necessary documents, like elaborate business plans and AML/CFT policies, customized to meet the Central Bank’s guidelines. This careful planning prevents usual pitfalls that might slow down the licensing process.
- Moreover, Tetra Consultants also coordinates communication with the regulatory bodies, organizing pre-application meetings to discuss any issues prior to formal submission. Our pre-existing relationships with local regulators can speed up your application and make it of the highest quality.
- In addition, we help to establish a local office and hire key personnel, meeting statutory requirements which will enable you to concentrate on your core business operations. Once your PSP license is obtained, we will also guide you in corporate bank account opening so that you will have your operations fully running.
- By selecting Tetra Consultants, you are assured of our open-ended method and dedication to delivering an uninterrupted experience along the way to licensing, thus setting your company up for success in the aggressive payment services market.
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FAQ
What is a Bahamas PSP license?
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