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We can help you incorporate in Bermuda

Exempted company (Company limited by shares)

Bermuda is a British Overseas territory and an international financial hub that does not apply taxes on profits, income or dividends, capital gains nor personal income. Non-resident investors may buy or sell shares and units of investment funds without being subject to taxation.

Exempted companies are exempt from the ownership restrictions that apply to local companies.

Furthermore, a Bermuda exempted company is not subject to exchange control restrictions or stamp duty on instruments executed by or on its behalf.

Bermuda’s exempted companies require a local resident acting as director or secretary or representative and its incorporation and maintenance costs are higher than other offshore jurisdictions.

The Bermuda Government passed legislation related to Economic Substance – the Economic Substance Act 2018 and the Economic Substance Regulations 2018 – in order to avoid being blacklisted by the EU.

Exempted and local companies, permit companies, exempted and local LLCs and partnerships that carry out ‘relevant activities’ as defined by the Economic Substance Act, 2018, will be required to meet certain substance tests – such as control and management from within Bermuda, adequate physical presence, employees and operating expenditures, among others.

Relevant business activities include banking, insurance, fund management, finance and leasing, headquarters, intellectual property, distribution and service centers, and holding companies. High-risk IP businesses will be subject to enhanced substance tests, whereas pure equity holdings will be subject to minimum substance requirements.

Companies conducting relevant activities will need to file an Annual Economic Substance Declaration. Existing companies will have until June 30, 2019, to meet substance requirements, whereas newly incorporated entities in 2019 will be required to comply with substance legislation immediately.

Companies that are not compliant with substance requirements may face civil penalties up to BMD 250,000. Making false economic substance declarations may carry out penalties up to BMD10,000 or imprisonment for two years, or both.

Bermudian companies that do not carry out relevant activities are not required to meet economic substance requirements.

Many Fortune 500 companies have set up a Bermuda exempted company for purposes such as holding company, holding assets, trading, manufacturing, inter-group financing, shipping, aircraft leasing and holding of intellectual property rights, among others.


Corporate income tax – Bermuda does not levy corporate income tax. All trading income, investment income, capital gains, compensations, rents, and royalties, as well as sales of goods or supplies of services, are exempted from taxation.

No withholding tax is levied on dividend, interest and royalty payments to non-residents.

Other taxes - Bermuda does not levy personal income taxes, including capital gains and investment income, which are exempt from taxation.

An annual tax is levied on the annual rental value of land and stamp duties may apply on estates transferred upon death at progressive rates from 5% up to 20% on estates with a value exceeding BMD 2,000,000.

  • Offshore Income Tax Exemption
  • Offshore capital gains tax exemption
  • Offshore dividends tax exemption
  • CFC Rules
  • Thin Capitalisation Rules
  • Patent Box
  • Tax Incentives & Credits
  • Property Tax
  • Wealth tax
  • Estate inheritance tax
  • Transfer tax
  • Capital duties
  • 0% Offshore Income Tax Rate
  • 0% Corporate Tax Rate
  • 0% Capital Gains Tax Rate
  • 0% Dividends Received
  • 0% Dividends Withholding Tax Rate
  • 0% Interests Withholding Tax Rate
  • 0% Royalties Withholding Tax Rate
  • 0% Personal Income Tax Rate
  • 0% VAT Rate
  • 0 Tax Treaties

Country details

North America
en-BM, Portuguese (Portugal)

The Bermuda Islands are a British overseas territory located in the North Atlantic Ocean off the east coast of the United States. The closest American continent point is the Cape Hatteras in North Carolina, located 1,030 km to the northwest, while the city of Miami is 1 770 km to the southwest. It has just over 67,000 inhabitants and its capital is Hamilton.

Bermuda forms the northern peak of the legendary Bermuda Triangle, a large maritime area in which it is said that they have been disappeared numerous ships and aircraft in unexplained circumstances. The archipelago is in an adverse climate area prone to be hit by hurricanes.

Its official currency is the Bermudian Dollar (BMD), pegged to the US$ at a 1:1 ratio.

The executive power in Bermuda resides in the monarch and is exercised in his name by the Governor. The governor is appointed by the Queen on the proposal of the British Government. The head of government is the prime minister.

The cabinet is proposed by the prime minister and officially appointed by the governor. The Legislative Branch consists of a bicameral parliament inspired by the Westminster system. The Senate is the Upper House, composed of eleven members appointed by the governor on the proposal of the prime minister and the leader of the opposition.

The House of Assembly, or lower house, has thirty-six members elected by the population with the right to vote by secret ballot.

The country has one of the highest per capita income worldwide. Its economy is based on insurance and reinsurance, banking and financial services, as well as tourism, which accounts for approximately 28% of GDP. Bermuda has a robust international business and financial sector, which accounts for 60% of its GDP.

The industrial sector is small, and agriculture is severely limited by the lack of adequate land.


We can help you incorporate a Exempted company (Company limited by shares) in Bermuda for $9,200.

Click here to incorporate your Bermuda EXEMPTED COMPANY.

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