Demerger Rules In The Bahamas

• Published date: 08 May 2025
• Law Firm: Icaza Gonzalez-Ruiz & Aleman
• Author: Mr Domingo Díaz de la Guardia

How Bahamas Companies Can Split Into Separate Entities

In 2023, The Bahamas updated its International Business Companies Act by passing an amendment (No. 2 of 2023) that allows companies to split into separate entities, a process called a "demerger." This means one company can break into two or more companies, allowing businesses to restructure in a new way. Here's a simple overview of how it works, and the key rules companies must follow:

What the Law Allows

A company can split into multiple new companies. The original company can either continue as one of the resulting entities or it can be replaced entirely by the new companies.

Who Can Demerge

Any international...