Substance Reporting (CESRA)
What is CESRA?
CESRA stands for Commerical Entities (Substance Requirements) Act 2018.
What is the purpose of CESRA?
CESRA was passed to comply with the global compliance standard requiring countries to demonstrate that corporate vehicles and other legal entities, that might be used in commercial activity within their borders, have a substantial economic presence and are engaged in real economic activity.
What are “Relevant Activities”
a) Banking business
b) Insurance business
c) Fund management business
d) Finance and leasing business
e) Headquarters business
f) Distribution and service centre business
g) Shipping business
h) Commercial use of intellectual property or
i) As a holding company engaged, or where one or more of
its subsidiaries is engaged in one of the activities listed
under paragraphs (a) to (h)
- All incorporated companies and legal partnerships are required to report. In particular, this includes Bahamian owned entities and legally incorporated non-profits. (For the avoidance of doubt, this does not include sole proprietorships or informal non-profits or partnerships.)
- In completing the process, it is important to correctly identify yourself if you are a resident owned entity in The Bahamas to ensure you are classified correctly and not subjected to unnecessary steps in the process. You will have to answer this question in the reporting portal when completing question #3 in the question wizard (Please refer to the Step-by-step guide below for further direction).
- It is also important to know if you are engaged in “relevant activities” for the purpose of this CESRA reporting exercise as those “included entities” have additional requirements (Please refer to the attached guide for further direction).
*Refer to the Act for full details. Substance Reporting (CESRA)