January 2021

CESRA: economic substance reporting deadline extension

The Commercial Entities Substance Requirements Act (CESRA) 2018 requires all legal entities registered in The Bahamas to comply with economic substance reporting by submitting an annual filing to the Minister of Finance. This filing is separate and apart from other filings made on the entity’s behalf to the Registrar General’s Department and is made via this portal.

Economic substance reporting under CESRA must be completed within nine months of the entity’s fiscal year end, however due to the COVID-19 pandemic, the deadline in respect of reporting for the year 2019 has been extended to 31 January, 2021. Failure to comply with the annual reporting requirement exposes an entity to fines and possible striking off.

CESRA places the obligation to comply with economic substance reporting on the entity itself. Hence, the reporting is not included in standard registered office and agent services. However, Lennox Paton Corporate Services Limited (“LPCS”) is pleased to offer Economic Substance Reporting Services to clients whose entities are classified as non-included entities under CESRA. The service includes securing an Entity Identification Number (EIN) on the entity’s behalf, as well as the completion and submission of the relevant form and declaration.              

LPCS’ CESRA reporting service is subject to the reporting services fee and linked Economic Substance Reporting Service Agreement and declaration: CESRA Agreement and Declaration

If you would like to engage LPCS as reporting agent, please provide the completed agreement (linked above) to Corinne Lampkin at clampkin@lennoxpaton.com. For reporting in respect of the year 2019, please submit your agreement and declaration no later than Friday 15 January, 2021.

For further information about economic substance reporting or other LPCS reporting services, please contact clampkin@lennoxpaton.com or LPCS_Email@lennoxpaton.com.