Bermuda Company Formation
Bermuda Company Formation: Offshore Business Setup in a Premier Jurisdiction Main Characteristics and the basic rules of Company registration in Bermuda
Bermuda is globally recognized as one of the most prestigious and stable offshore jurisdictions, offering an exceptional environment for international business operations. With its strong regulatory framework, political stability, and favorable tax regime, Bermuda company formation is a strategic choice for entrepreneurs, investors, and multinational corporations seeking a world-class offshore base.
This guide provides a complete overview of Bermuda company formation, including its advantages, requirements, incorporation procedures, and taxation system — helping you make informed decisions about establishing your offshore business in this reputable jurisdiction.
Why Choose Bermuda for Company Formation?
Bermuda has long been associated with financial integrity, innovation, and global business prestige. It’s home to numerous Fortune 500 companies and international financial institutions.
Key Benefits of Bermuda Company Formation
- Zero Corporate Tax: No corporate, capital gains, or withholding taxes.
- Global Reputation: Recognized as a top-tier offshore jurisdiction with strong regulatory oversight.
- Political and Economic Stability: A self-governing British Overseas Territory with a solid economy and strong rule of law.
- Flexible Corporate Structures: Ideal for holding, investment, insurance, and trading companies.
- No Exchange Controls: Free movement of capital and profits.
- Confidentiality and Asset Protection: Strong privacy laws protect company owners and financial information.
- Ease of Incorporation: Streamlined registration process and efficient authorities.
- Access to Skilled Professionals: Bermuda’s workforce includes legal, accounting, and financial experts familiar with international standards.
Types of Companies in Bermuda
Bermuda’s Companies Act 1981 provides flexibility for various business structures suitable for both local and international investors.
|
Company Type |
Description |
|
Exempted Company |
Most common type for non-residents. Designed for international business and exempt from local taxes. |
|
Local Company |
Used by residents conducting business within Bermuda. |
|
Limited Liability Company (LLC) |
Flexible hybrid structure offering corporate and partnership advantages. |
|
Partnerships and Limited Partnerships |
Common for investment and fund management structures. |
|
Segregated Accounts Company (SAC) |
Used for insurance, investment, and risk management purposes. |
Advantages of Bermuda Company Formation for Non-Residents
|
Feature |
Benefit |
|
100% Foreign Ownership |
Non-residents can own the entire company. |
|
Tax-Free Environment |
No income, capital gains, or dividend tax. |
|
Confidential Ownership |
Shareholder identities are not publicly disclosed. |
|
No Minimum Capital Requirement |
Flexibility in capital structure. |
|
International Credibility |
Bermuda’s reputation enhances investor confidence. |
|
Flexible Banking and Investment Options |
Access to major global banks and financial institutions. |
Requirements for Bermuda Company Formation
To register a company in Bermuda, the following are generally required:
- Company Name: Must be unique and approved by the Bermuda Registrar of Companies.
- Registered Office: A local registered address within Bermuda is mandatory.
- Shareholders: Minimum of one shareholder (individual or corporate).
- Directors: At least one director is required (can be non-resident).
- Company Secretary: A local company secretary is mandatory.
- Share Capital: No minimum requirement, though standard capital is USD 12,000.
- Memorandum and Articles of Association: Must be submitted for incorporation.
- Due Diligence Documents: Certified passport copies, proof of address, and reference letters for all officers and shareholders.
Procedure for Bermuda Company Formation
Step 1 – Choose Company Type and Name
Select the most suitable structure (commonly an Exempted Company) and verify name availability with the Registrar of Companies.
Step 2 – Prepare Incorporation Documents
Draft the company’s Memorandum and Articles of Association and prepare KYC documentation.
Step 3 – Submit Application for Approval
Submit incorporation documents to the Bermuda Monetary Authority (BMA) for approval.
Step 4 – Register with the Registrar of Companies
After BMA approval, the company is registered with the Registrar, and a Certificate of Incorporation is issued.
Step 5 – Appoint Officers and Open a Bank Account
Appoint directors, a company secretary, and open a corporate bank account in Bermuda or internationally.
Step 6 – Begin Business Operations
Once incorporated and banked, the company can commence offshore business activities.
Timeframe for Company Registration in Bermuda
|
Stage |
Process |
Timeframe |
|
Name Reservation |
Registrar of Companies approval |
1 business day |
|
Document Preparation |
Drafting and notarization |
2–3 business days |
|
BMA and Registrar Review |
Approval and incorporation |
3–5 business days |
|
Total |
Average timeframe for incorporation |
5–7 business days |
Bermuda Corporate Tax System
One of Bermuda’s biggest attractions is its zero-tax environment, offering full exemption from income and corporate taxes.
Key Features of the Bermuda Tax Regime
- Corporate Income Tax: 0%
- Capital Gains Tax: 0%
- Withholding Tax: 0%
- Dividend Tax: 0%
- Stamp Duty: Minimal and applies only in limited local transactions.
- Exchange Controls: None for exempted companies.
- Tax Exemption Guarantee: Granted until at least 2035 under Bermuda law.
While there is no direct tax, companies must maintain proper accounting and comply with anti-money laundering (AML) and economic substance regulations if carrying out certain relevant activities.
How We Can Help You
Our experienced professionals specialize in Bermuda company formation and offer comprehensive end-to-end support to ensure a smooth, compliant, and cost-efficient setup.
Our Services Include
- Consultation on optimal corporate structure and jurisdiction
- Name reservation and incorporation with the Bermuda Registrar
- Preparation and filing of incorporation documents
- Appointment of local secretary and registered office services
- Assistance with offshore bank account opening
- Legal and tax advisory for international business compliance
- Annual renewal and corporate maintenance services
- Ongoing regulatory and compliance support
Start Your Bermuda Company Formation Today
Bermuda offers one of the most reliable, reputable, and tax-efficient offshore environments in the world — making it an ideal base for global entrepreneurs, holding companies, and financial entities.
By partnering with our team, you gain access to expert support and tailored strategies to establish your company in full compliance with Bermuda’s robust legal framework.
Contact us today to start your Bermuda company formation and take advantage of this premier offshore jurisdiction for global business expansion.
Questions & Answers
What is the tax system like in Bermuda?
Bermuda does not impose income tax, capital gains tax, or value-added tax (VAT). Instead, the government primarily relies on other forms of revenue, including payroll tax, customs duties, and various fees. This unique tax structure makes Bermuda an attractive destination for both businesses and individuals seeking a lower tax burden.
Is there a corporate tax in Bermuda?
Bermuda does not levy a corporate income tax. However, businesses are required to pay annual fees and payroll taxes based on their workforce. This absence of corporate tax encourages many international companies to establish and maintain their operations in Bermuda.
What are the major taxes individuals should be aware of in Bermuda?
Individuals in Bermuda primarily face payroll taxes, which are deducted from salaries and wages. Additionally, there are property taxes on real estate and import duties on goods brought into the country. However, personal income tax is not applicable, making Bermuda a favorable location for high earners.
Do residents pay property tax in Bermuda?
Yes, Bermuda residents do pay property tax, which is determined by the government-based assessment of the property’s value. The rates can vary based on the property’s classification and location, but property tax remains one of the few forms of taxation in the region.
How can businesses benefit from Bermuda’s tax system?
Businesses can significantly benefit from Bermuda’s lack of corporate income tax, allowing for greater profitability and reinvestment opportunities. The jurisdiction also boasts a stable economy and a well-established regulatory framework, making it a prime location for insurance, reinsurance, and finance sectors.
Are there any taxes on dividends in Bermuda?
Bermuda does not impose taxes on dividends paid to shareholders, which is an attractive feature for investors. This policy encourages companies to pay out dividends, making Bermuda an appealing place for those looking for investment income without additional tax liabilities.
Learn more: Visit our Full Bermuda FAQ page
or contact our tax and company formation team at[email protected]
What is an offshore company in Bermuda?
An offshore company in Bermuda is a business entity that is incorporated under Bermuda law but operates outside of the country. These companies often benefit from favorable tax regulations, confidentiality, and a stable political environment, making Bermuda a popular choice for entrepreneurs and investors aiming to establish an international business presence.
What are the benefits of forming an offshore company in Bermuda?
Forming an offshore company in Bermuda offers several benefits, including tax advantages, privacy protection, and a robust legal framework. Businesses can take advantage of zero corporate taxes, there is minimal reporting requirements, and shareholder information is kept confidential. Additionally, Bermuda’s reputation as a financial center provides credibility to companies operating there.
What are the requirements for forming a Bermuda offshore company?
To form an offshore company in Bermuda, you need at least one shareholder, one director, and a registered office in Bermuda. There are no local residency requirements for directors or shareholders, making it accessible for international entrepreneurs. Additionally, you must prepare and submit the necessary incorporation documents and pay the applicable fees.
How long does the formation process take?
The process of creating an offshore company in Bermuda is typically quick, often completed within a few days to a week. This includes submitting the required documentation to the Bermuda Registrar of Companies, after which you would receive the Certificate of Incorporation. Efficiency is a key factor, allowing businesses to start operations promptly.
Are there ongoing compliance requirements for Bermuda offshore companies?
Yes, offshore companies in Bermuda are subject to certain ongoing compliance requirements. This includes maintaining a registered office in Bermuda, paying annual fees, and submitting annual returns. While the reporting requirements are relatively minimal compared to onshore companies, maintaining compliance is essential to uphold the company’s good standing.
Can foreign investors own Bermuda offshore companies?
Yes, foreign investors can fully own and operate offshore companies in Bermuda. There are no restrictions on foreign ownership, and these entities can engage in a wide range of business activities globally. This accessibility makes Bermuda an attractive destination for international investors looking to shelter assets or conduct business efficiently.
Learn more: Visit our Full Bermuda FAQ page
or contact our tax and company formation team at
This publication is provided for information purposes only. This info should not be treated as a substitute for a tax or legal consultation or legislation. You should not act on the basis of the information contained in this publication without having obtained individual advice from the professional expert.
BRIS GROUP does not assume responsibility for any damage resulting from decisions made by the reader on the basis of this publication.
About Bermuda
Country: Bermuda
Capital: Hamilton
Continent: North America
Language: English
Currency: Bermudian Dollar (BMD)
Time Zones: GMT -3
Dial Code: +1 441
Abbreviations: BM, BMU
Helping Your Company Thrive on Bermuda With us, starting and running a business on Bermuda will be easy and efficient!
- Full support of the company’s registration on Bermuda: from the preparation of documents to their submission.
- Remote registration: all processes are online, wherever you are.
- Secretary and Treasurer: we can take on these important roles.
- Nominal directors and shareholders: we will ensure the confidentiality of your information.
- Help in opening a bank account: we will simplify this complex process.
- Registration for taxes, VAT and EORI: ensure all requirements are met.
- Website development: we will create a professional online representation for your business.
- Logo creation: we will design a unique and memorable logo for your brand.
- Full administrative support of the company: we will take over routine tasks.
- Mailing address organization: we provide a reliable mailing address for your business.
- Organization of the virtual office: we will ensure the professional image of your company.
- Telephone answering service: we will answer calls on behalf of your company.
- Accounting, audit and reporting: ensure accurate and timely accounting.
- Preparing and filing a VAT declaration: let’s save you the trouble.
- Interaction with local authorities: take over communication with state institutions.
- Trademark registration: protect your brand.
- More Emphasis on Customer Input.