IBC is not allowed to conduct business with residents of the Bahamas, as well as invest in activities of any form of incorporation located on the islands, except with regards to financing its own registered office.
Offshore companies in the Bahamas are also prohibited from conducting activities or investing in banking, trust funds, and insurance or re-insurance sectors. Transferring the address of a registered office for use by other companies is not allowed. That is, registering an offshore company in the Bahamas means operating only outside the state.
An IBC is entitled to open a bank account(s), engage local lawyers in resolving certain issues, carry out the maintenance, documentation, record of financial statements, as well as hold meetings of shareholders and directors.
IBC can own shares, as well as bonds of other companies registered in the Bahamas. Owners of shares can be Bahamian residents.