Bermuda, an archipelago in the North Atlantic Ocean, is known for its pristine beaches, turquoise waters, and colourful buildings. This British Overseas Territory has a population of around 64,000 and is located about 1,000 kilometres east of the United States. Bermuda’s unique blend of British, American, and Caribbean influences gives it a distinct cultural identity, making it a popular tourist destination. However, what many people may not realise is that Bermuda is also a premier offshore financial centre, offering a wide range of benefits to businesses and investors.
Setting up an offshore company in Bermuda can offer many advantages to businesses and investors. It has a stable and transparent legal and regulatory framework, with sophisticated infrastructure and a highly skilled workforce. This makes Bermuda a popular choice for those looking to reduce their tax liability and maximise their profits. Furthermore, Bermuda has a reputation for being a well-respected and reputable offshore financial centre, which can provide businesses with credibility and legitimacy.
Bermuda is a renowned tax haven famous for its favourable tax policies. Companies operating in the islands benefit from the absence of taxes on profits, income, or dividends, as well as no capital gains tax, estate duty, or death duty.
The Bermuda government provides exempted companies with an assurance that any legislation imposing taxes on profits, income, or capital gains will not apply to them, adding an extra layer of security for businesses considering setting up in Bermuda. While there are government fees and annual compliance fees for maintaining a registered office, shareholder, and director register, the benefits of establishing an offshore company in Bermuda outweigh these costs, and when it comes to tax planning, Bermuda is the perfect choice for companies incorporated in the jurisdiction.
|Currency||Bermuda Dollar (BD$)|
|Capital gains tax||0%|
Bermuda offshore company incorporation is governed by the Companies Act 1981, which is the main legislation outlining the formation and operation of companies in Bermuda. The Act provides for the creation of exempt companies, which are specially designed for offshore business purposes and are exempt from certain requirements of the Companies Act.
In addition to exempt companies, Bermuda’s offshore legislation allows for the incorporation of a variety of other business entities, including limited liability companies (LLCs), partnerships, and trusts. The Limited Liability Company Act 2016 governs the formation and operation of LLCs in Bermuda.
Offshore commercial law in Bermuda is governed by a variety of laws and regulations, including:
Bermuda’s regulatory regime is overseen by the Bermuda Monetary Authority, under the guidance of the Minister of Finance. The authority is responsible for the supervision and regulation of financial institutions in Bermuda.
These tropical islands have a robust and transparent legal system that ensures the protection of the interests of all parties involved. Any legal action against offshore Bermuda companies is subject to Bermuda’s jurisdiction and therefore subject to its laws and regulations. Bermuda is well known for its high regulatory standards and cooperation with international authorities in matters of legal and financial compliance.
With its stable government, favourable tax system, and transparent regulatory environment, Bermuda is a top destination for offshore business. But what makes Bermuda stand out from other offshore jurisdictions? In the next section, we will explore why Bermuda is a popular choice for those looking to establish an offshore business.
Bermuda is a popular offshore destination for businesses and individuals due to its numerous benefits. Here are some reasons why you should consider Bermuda as your offshore destination:
How to open an offshore company in Bermuda? If you’re considering incorporating a company in Bermuda, the process is relatively straightforward. Here’s a breakdown of the main steps involved in forming an offshore company in Bermuda.
Step 1: Consultation with a Service Provider
The first step towards setting up an offshore company in Bermuda is to schedule a consultation with a reputable service provider. During this consultation, you can discuss your business needs and learn more about the offshore company benefits in Bermuda, a tax haven.
Step 2: Choose the Company Structure and Name
Once you have decided to proceed with incorporating your business in Bermuda and have completed the initial consultation, you will need to choose a company structure and name. Bermuda offers a variety of structures to suit different business needs, and it’s important to choose a unique name that complies with Bermuda’s naming requirements.
Step 3: Incorporation and Compliance
After you have chosen a company structure and name, your service provider will assist you in gathering and preparing the required documents and filing them with the Bermuda Registrar of Companies. This process typically takes a few business days. It’s important to note that Bermuda, as a tax haven, has strict compliance requirements that must be met to maintain good standing. Your service provider can assist you in staying compliant with all necessary regulations.
With the right service provider, the process can be seamless and stress-free, leaving you more time to focus on growing your business. Discover the benefits of Bermuda offshore incorporation today.
|Stage 1||Contact us for more information and quotes. We answer within three hours!|
|Stage 2||Fill in a form, provide us with the required documents and make a payment.|
|Stage 3||Receive the scanned Bermuda offshore company incorporation documents within five days, and hard copies by courier in up to eight days.|
To incorporate an offshore company in Bermuda, the following documents are typically required:
The Bermuda offshore fees include the following services:
After your Bermuda offshore company formation, you will receive the following Bermuda company documents:
It is important to note that the exact requirements for incorporating a Bermuda offshore company may vary depending on the specific circumstances and services required.
If you’re thinking to set up an offshore business in Bermuda, one of the first things you’ll need to decide is your company name. Choosing the right name for your business is crucial, as it can affect your branding, marketing, and legal protection.
Steps to follow when selecting your company name in Bermuda:
Once you have chosen your company name in Bermuda, you can proceed with registering your offshore company.
Bermuda is a hub for international business, with a variety of corporate structures available to meet the needs of entrepreneurs and investors. Companies in Bermuda are divided into two main categories: exempted companies and local companies.
Exempted companies are designed for businesses that operate internationally and can conduct business transactions outside of Bermuda, as well as with other exempted companies. This means that exempted companies are exempt from certain local regulations that apply to local companies. As a result, they are able to operate with greater flexibility, efficiency, and privacy.
Benefits of Exempted Companies:
On the other hand, local companies are typically owned or managed by native islanders and are only allowed to carry out business activities within Bermuda’s borders. These companies can transact with other Bermuda-based businesses.
Regardless of whether a company is exempted or local, it can take on one of the following four structures:
When considering the set up of an offshore company in Bermuda, an exempted company is usually the preferred choice for those looking to transact solely with off-island businesses. Whatever type of company you decide to establish, Bermuda’s flexible corporate structures provide a range of options to suit your needs.
The Bermuda exempt company offers several benefits, including a flexible corporate structure that allows for one or more shareholders and directors, who can be individuals or corporations of any nationality and residency. In this type of company, the directors are responsible for managing the company and can be appointed for a fixed or indefinite term.
One of the primary advantages of an exempted company is that the shareholders are not personally liable for the company’s debts and obligations beyond their capital contributions. This means that the personal assets of the shareholders are protected from any potential lawsuits or creditors of the company.
Additionally, exempted companies are not required to disclose the names of their shareholders or directors in any public filings. This ensures a high degree of confidentiality and privacy for the individuals or corporations involved in the company.
|Type of Company||Minimum Number of Shareholders||Maximum Number of Shareholders||Minimum Number of Directors||Maximum Number of Directors|
Share capital of a Bermuda company and types of companies
Share capital is an important consideration when forming exempted companies in Bermuda for offshore business operations. There are two types of shares that can be issued by exempted companies: par value shares and non-par value shares. Here’s what you need to know:
Par value shares: These shares have a fixed face value, meaning their value is stated on the share certificate.
Non-par value shares: In contrast, these shares do not have a fixed face value. Instead, their value is determined by the market at the time of issue.
Bermuda offshore formation offers flexibility in terms of share capital structure, with no restrictions on the currency used and unlimited share capital issuance. These benefits enable businesses to tailor their share capital structure to meet their specific requirements and align with their financial goals.
It’s also important to note that exempted companies in Bermuda can be structured as limited or unlimited liability companies. Limited liability companies have a fixed amount of minimum share capital and limit the liability of shareholders to the amount of their investment. Unlimited liability companies, however, have no limit on the amount of capital and expose shareholders to full liability for the company’s debts and obligations.
With its favourable tax regime, Bermuda has become a popular choice for offshore business operations, and its exempted companies offer a tax-efficient way for businesses to operate in a Bermuda offshore tax haven. By understanding the different types of shares and liability structures available for exempted companies in Bermuda, investors can make informed decisions when setting up their offshore business.
|Company Type||Minimum Shareholders||Maximum Shareholders||Minimum Directors||Maximum Directors||Share Value|
Par value or non-par value
|Company Type||Minimum Shareholders||Maximum Shareholders||Minimum Directors||Maximum Directors||Share Value||Shareholder Liability|
|Limited Liability Company (LLC)||1||Unlimited||1||Unlimited||Par value or non-par value||Limited to amount invested|
|Unlimited Liability Company||2||Unlimited||2||Unlimited||Par value||Unlimited personal liability|
Bermuda is also known for its confidentiality and privacy laws, which are highly valued by those seeking to register an offshore company. The Companies Act 1981 allows the creation of exempted companies, which are exempt from certain provisions of the Act and enjoy greater privacy than regular companies.
Exempted companies in Bermuda are not required to disclose the names of their directors or shareholders to the Registrar of Companies. Instead, the registers of directors, shareholders, and beneficial owners are kept by the company’s registered office, typically a local law firm or trust company. These registers are not available to the public and can only be accessed by government authorities upon request.
When opening a bank account for a Bermuda offshore company, the high level of confidentiality and privacy offered by the jurisdiction can also be an advantage. Many offshore banks in Bermuda are accustomed to working with exempted companies and understand the need for privacy and confidentiality.
Bermuda also maintains a centralised beneficial ownership register, accessible only to designated government officials and law enforcement agencies. The register contains information on the beneficial owners of all Bermuda companies, including exempted companies. However, this information is not available to the public.
The use of nominee directors and shareholders is common in Bermuda to further enhance privacy. Additionally, trusts and foundations can be used to structure beneficial ownership.
Overall, Bermuda’s strong privacy laws make it an attractive jurisdiction for those looking to register an offshore company, with the process of Bermuda offshore company registration being relatively straightforward and efficient.
Offshore Bermuda companies that are incorporated or have a presence in Bermuda are subject to economic substance requirements. However, the following entities are exempted from these requirements:
For companies not listed above, economic substance requirements apply if they engage in any of the following business activities:
It is important to note that investment fund businesses are not included in the relevant activities list.
Companies not engaged in any of the aforementioned business activities are not subject to economic substance requirements in Bermuda.
This jurisdiction has a number of reporting requirements for companies, including:
Company formation in Bermuda must file an annual return and an annual government fee with the Bermuda Registrar of Companies. This filing must include information about the company’s directors, shareholders, and officers, as well as its financial statements.
Bermuda requires all companies to maintain a register of their beneficial owners, which includes individuals who own or control more than 25% of the company’s shares or voting rights, or who otherwise exercise control over the company. This register must be updated regularly and made available to the Bermuda government.
As mentioned earlier, Bermuda has economic substance requirements for certain types of companies. These companies must also comply with additional reporting requirements related to their economic substance, including filing an annual economic substance declaration with the Bermuda government.
Incorporating your company in Bermuda has never been easier with Astra Trust. We offer affordable offshore company formation services tailored to your business needs. Our team of experienced professionals can guide you through the process of offshore company incorporation in Bermuda, ensuring compliance with local regulations and requirements. From opening a bank account in Bermuda to obtaining a Tax Exemption Certificate, we provide comprehensive support every step of the way. Contact us today to learn how we can help you establish your offshore presence in this premier international business centre.
Business Activity Restrictions
Requirements for Directors
Requirements for Secretaries
Requirements for Shareholders