Bank Accounts website
Flag Theory website

Bermuda

We can help you incorporate in Bermuda

Exempted company (Company limited by shares)

Bermuda, a British Overseas Territory located in the North Atlantic, has long held a reputation as a premier international financial center. One of its most attractive features is its tax-neutral regime—the jurisdiction imposes no taxes on corporate profits, capital gains, dividends, or personal income. This, combined with its stable legal and political environment, has made Bermuda a preferred destination for multinational enterprises and high-net-worth individuals seeking an efficient vehicle for international structuring.

The primary corporate structure used in Bermuda for international business is the Exempted Company, governed by the Bermuda Companies Act 1981. These entities are limited by shares and are specifically designed for operations that do not intend to carry out business within the domestic Bermuda market.

Shareholders in an exempted company subscribe to transferable shares, which confer voting rights, the ability to approve financial statements, and the authority to appoint the board of directors—unless specific share classes impose different terms. The directors are tasked with the overall management and strategic direction of the company and hold legal authority to bind the company in transactions.

Bermuda allows these companies to maintain a standard assessable capital of USD 12,000 to attract the minimum government fees. Importantly, while share premium is included in the calculation of statutory fees, capital contributions made as voluntary payments or “gifts” by shareholders do not affect the assessable capital base. This structure permits companies to receive additional funding without incurring higher government charges, a strategy commonly used to optimize cost while maintaining capital efficiency.

Exempted companies are not subject to the ownership limitations imposed on domestic entities, nor are they constrained by Bermuda’s exchange control regulations. Additionally, these companies benefit from stamp duty exemptions on documentation executed on their behalf. However, there are some regulatory requirements to consider: all exempted companies must appoint a local Bermuda-based individual to act as a director, secretary, or resident representative. While incorporation costs are higher in Bermuda compared to other offshore jurisdictions, the jurisdiction offers unmatched credibility, particularly for businesses with ambitions to access global capital markets or list publicly in the future.

The incorporation process generally takes around two weeks. Applicants must provide certified identification documents and proof of address for all directors, beneficial owners, and shareholders. Once the due diligence process is complete, an application for non-objection must be submitted to the Bermuda Monetary Authority (BMA), which typically takes about one week to process. Simultaneously, formation documents such as the memorandum of association are prepared and, upon receiving BMA approval, are filed with the Registrar of Companies. The Certificate of Incorporation is usually issued within one to two business days following the submission.

In alignment with global tax transparency and anti-base erosion standards, Bermuda enacted the Economic Substance Act 2018 and accompanying Regulations. These require Bermuda entities conducting certain “relevant activities” to maintain economic substance on the island. These activities include sectors such as banking, insurance, fund management, finance and leasing, intellectual property, headquarters, shipping, and distribution. Affected companies must demonstrate local control and management, adequate staff and expenditure, and physical presence in Bermuda. Special rules apply to high-risk IP companies, while pure equity holding entities are subject to lighter compliance. All entities engaged in relevant activities must file an Annual Economic Substance Declaration.

Thanks to its combination of strong regulation, legal transparency, and tax neutrality, Bermuda is home to thousands of global structures, including those set up by Fortune 500 companies. Common uses of Bermuda exempted companies include holding assets, managing intellectual property portfolios, conducting intercompany financing, leasing aircraft and ships, and operating trading or manufacturing arms of multinational groups. Its strategic location and reputation ensure that Bermuda remains a favored platform for sophisticated cross-border planning.

Taxes

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

Bermuda
BMD
Hamilton
North America
en-BM, Portuguese (Portugal)
65,365

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 King 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.

Services

We can help you incorporate a Exempted company (Company limited by shares) in Bermuda for $10,700.


Click here to incorporate your Bermuda EXEMPTED COMPANY.

Incorporate now

Disclaimer

Although we use our best efforts to keep the information of this site accurate and up-to-date, we make no representations or warranties with respect to the accuracy, applicability, fitness, or completeness of the contents of this website. We disclaim any warranties expressed or implied, merchantability, or fitness for any particular purpose. We shall in no event be held liable for any loss or other damages, including but not limited to special, incidental, consequential, or other damages. The contents of this website are just for illustrative purposes and are NOT to be considered as a legal opinion or tax advice and should not be relied upon as such. Far Horizon Capital Inc., and any associated company, is not engaged in the practice of law or tax. If you wish to receive a legal opinion or tax advice on the matter(s) in this website please contact our offices and we will refer you to an appropriate legal practitioner. Use of our websites FlagTheory.com, Incorporations.io, Residencies.io, Passports.io, is subject to our terms and conditions.

Newsletter

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io. We offer expert consultation advice and assistance.

Your privacy is important for us and we will keep your information secure. View our privacy policy

View past newsletters

Consultation with

Flag Theory is an internationalization and offshore solutions provider, and the creator of incorporations.io

In order to better serve you, we ask that you please fill out the following form as accurately as you can and provide as many details as possible. Thank you.

Your privacy is important for us and we will keep your information secure. View our privacy policy