Exempted company (Company limited by shares)
Bermuda is a British Overseas territory and an international financial and banking 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.
An Exempted company incorporated in Bermuda is entitled to do business outside Bermuda and shall not trade within the jurisdiction, own properties in Bermuda, and may require a license to undertake banking, insurance, assurance, reinsurance, fund management, collective investment schemes, rendering investment advice or any other activity which may suggest an association with the banking and insurance industries.
Under the Exempt Undertakings Act of 1976, Exempted Companies can obtain protection from any newly enacted taxes on income or capital gains until 2035.
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.
Bermuda is in the OECD’s white list as it has implemented strong AML/CFT regulations and has committed to undertake the OECD’s automatic exchange of information (AEoI) through Common Reporting Standard (CRS).
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.
Country code – BM
Legal Basis – Common law
Legal framework – Companies Act 1981 (as amended 2006)
Company form – Exempted company (Company limited by shares)
Liability - The liability of a shareholder to the company is limited to any amount unpaid on a share held by the shareholder.
Business restrictions – An Exempted company incorporated in Bermuda shall not trade within Bermuda, own properties in Bermuda, nor undertake banking, insurance, assurance, reinsurance, fund management, collective investment schemes, rendering investment advice or any other activity which may suggest an association with the banking and insurance industries.
Share capital – Bermuda exempted companies are no required to maintain a minimum share capital. Shares may not be without par value. Issue of bearer shares is not permitted.
Shareholders – The company may be formed by 1 or more shareholders, who can be either individuals or corporations, and may be non-resident. Details of the shareholders are disclosed on a public file. Nominee shareholders are permitted.
Directors – At least one director is required, who may be a natural or a legal person, and may be non-resident. Details of the directors are disclosed on a public file.
Secretary – The appointment of secretary is mandatory, who must be a natural person and resident in Bermuda.
Registered Address – IBCs must have a registered office and registered agent who may be corporate body or individual, and must be resident in Bermuda. Copies of the Articles of Association, Memorandum of Association, and Certificate of Incorporation must be kept at the Registered Office.
General Meeting – Annual general meetings are not mandatory, and can be held anywhere. Meetings can be held by telephone or other electronic means; alternatively, directors as well as shareholders may vote by proxy.
Electronic Signature – Permitted.
Re-domiciliation – A foreign and local entity may continue as a Bermuda Exempted company, and vice versa.
Compliance –A company is required to keep accounting records for 5 years, which should reflect the financial position of a company, and may be kept at the registered office or anywhere. A corporation must prepare financial statements annually, and may have its accounts audited. However, members and directors may agree to waive this requirement.
There is no requirement to file accounts, tax or annual return with the authorities.
Exempted companies are subject to an annual government fee, the amount of which may vary depending on its assessable capital (min $1,995).
- Shareholders not disclosed
- Directors not disclosed
- Corporate shareholders permitted
- Corporate directors permitted
- Local director required
- Secretary required
- Local secretary required
- Annual general meetings required
- Redomiciliation permitted
- Electronic signature
- Annual return
- Audited accounts
- Audited accounts exemption
- Exchange controls
- Common law Legal basis
- 1 Minimum shareholders
- 1 Minimum directors
- USD 1 Minimum issued capital
- - Minimum paid up capital
- USDAny Capital currency
- Anywhere Location of annual general meeting
- 2017 AEOI
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% 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
The Bermuda Islands are a British overseas territory member of the CARICOM. 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.
The islands form 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.
Bermuda Exempted Company (LTD) – US$9,255.00 (All included)
Bermuda Limited Liability Company (LLC) – US$9,255.00 (All included)
We pride ourselves in providing the best possible professional service which includes our honest hassle free “No Hidden Fee” policy. Your incorporation package includes:
- Incorporation fees
- Bermuda Monetary Authority Application fees
- Filing fee on registration of the company
- Tax Exemption Certificate
- Corporate equipment costs and other disbursements
- Administration fee
- Directors’ registration fee
- Bound set of Constitutional Documents
Time to form: 2 to 3 weeks.
All our incorporation services include a yearly consulting session, a dedicated account manager and access to our global network of trusted business services, including introductions to accountants, financial, tax and legal advisors at no cost.
Bank Account Options
- Offshore Bank Account* (Remotely) – US$300.00
- Mauritius Bank Account (Remotely) – US$500.00
- Labuan (Malaysia) Bank Account (Remotely) – US$500.00
- Bahamas Bank Account (Remotely) – US$500.00
- Curaçao Bank Account (Remotely) – US$500.00
- Hong Kong Bank Account (In-person) – US$1,200.00
- Singapore Bank Account (In-person) – US$900.00
- Cayman Islands Bank Account (Remotely) – US$900.00
- Crypto-Friendly Bank Account (Remotely) – US$3,000
We include introductions to payment processors or merchant accounts with all of our incorporation services. Whether you just need standard credit card processing or specialized services for high risk processing, we are happy to help you with introductions that can empower your business.
*Offshore Bank Accounts: Belize, Puerto Rico, Nevis, Antigua, Saint Lucia. Other bank account options may be available depending on business profile and turnover.
Annual Fees (2nd year) – US$9,595.00
- Government fee (Company-s assessable share capital: USD 12,000)
- Corporate Secretary Services
- Registered Agent & Registered Office fee
Click here to incorporate your Bermuda EXEMPTED COMPANY.