Asset holding
Advantages of Bermuda Company Formation
- Excellent reputation of British Overseas Territory (BOT)
- Complete tax exemption of profits
- Very stable political and tax environment
- Strong and up to date regulation
- Wide net of double tax treaties with more than 40 jurisdictions
Privacy Score
This score demonstrates how much privacy can be maintained by the company and the rate of disclosure of the corporate information for open public scrutiny. The higher the rate, the more privacy the company can enjoy. All rates are based on the open sources and subjective view of Astra Trust.
91
0
100
Tax Haven Score
This score demonstrates the tax burden applicable to the company and the jurisdiction as a whole. The higher the score, the lower are tax rates, and the easier is regulation. All scores are based on the open sources and subjective view of Astra Trust.
93
0
100
Reputation
This score demonstrates the reputation of the company and jurisdiction in the financial and business circles. The higher the score, the more favourable is the treatment by financial institutions, authorities, and counterparties. All scores are based on the open sources and subjective view of Astra Trust.
Excellent
Find out more about Bermuda
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.
The Following Types of Entities Are Available for Incorporation in Bermuda:
- Exempted Company
- Limited Company (LTD)
- Limited Liability Company (LLC)
- Limited Partnership (LP)
Why Set Up a Bermuda Company?
Bermuda is a highly reputable offshore destination for reputable businesses and individuals due to its high status and robust regulation. Here are some reasons why you should consider Bermuda as your offshore destination:
Tax Benefits and Regulatory Standards
A Bermuda offshore company has tax benefits such as no corporate income tax, no personal income tax, and no capital gains tax, making it a tax-efficient jurisdiction for businesses and individuals. Bermuda is committed to maintaining high regulatory standards, particularly in the areas of anti-money laundering and counter-terrorist financing.
Political Stability
This is one of the many Bermuda offshore benefits that make it an attractive destination for businesses and investors. As a British Overseas Territory, Bermuda enjoys a stable and democratic government. The island’s legal system is based on English common law, which is known for its fairness and reliability. These factors contribute to a favourable business environment that fosters growth and investment.
Location and World-Class Infrastructure
Bermuda is located just 650 miles off the coast of North Carolina, making it an ideal offshore destination for US-based businesses and individuals. Bermuda has a modern and reliable telecommunications and transportation infrastructure, making it easy to conduct business from the island. Bermuda has a highly educated and skilled workforce, with many professionals trained in finance, law, and other industries.
Reputation
Bermuda is a well-respected and reputable offshore jurisdiction with a strong track record of providing a secure and stable environment for offshore businesses and individuals. Bermuda’s offshore banking is another key aspect of the country’s reputation as a reputable offshore jurisdiction. With a long-standing history as a leading financial centre, Bermuda offers a stable and secure environment for offshore banking activities.
Companies Incorporated in Bermuda are Often Used for the Following Purposes:
Tax planning
International trade
Captive insurance
Taxation of Bermuda Company
| Currency | Bermuda Dollar (BD$) |
| Corporate Income Tax | 0% |
| Withholding Tax | 0% |
| Capital Gains Tax | 0% |
| Inheritance Tax | 0% |
| VAT | 0% |
| Exchange Controls | No |
Taxation in Bermuda
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.
Upon application to the Minister through the Bermuda Monetary Authority, the Bermuda government often issues Tax Assurance Certificates to exempted undertakings (i.e., exempted corporations, permit companies, exempted partnerships, and exempted unit trust schemes). These Tax Assurances guarantee that the company and its operations will not be subject to any future parliamentary imposition of any taxes. As of right now, the Tax Assurances are valid until March 31, 2035.
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.
No currency control is applicable in Bermuda.
Bermuda’s official currency is the Bermuda Dollar.
Corporate Legislation in Bermuda
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.
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’s Legislation Regulating Offshore Financial Services Includes The Following Acts:
Incorporation Process Of Bermuda Company
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 incorporation documents within seven days, and hard copies by courier in up to ten days.
Required Documents To Incorporate Bermuda Company
For Bermuda company registration the following KYC documents are required:
- Certified copy of proof of ID for all directors, shareholders and beneficial owners;
- Certified proof of address for all directors, shareholders and beneficial owners;
- Bank reference letter for each director, shareholder, and beneficial owner; and
- KYC form provided by your personal manager at Astra Trust.
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.
For more information click below to receive certification instructions and requirements.
Documents And Services You Receive After Bermuda Company Formation
The Costs of Bermuda Company Incorporation Include Services as Follows:
- Company name search in the register of companies to check for availability
- Revision of KYC documents
- Drafting of activation corporate documents upon the incorporation of a Bermuda company
- Bermuda registered office services for one year
- Bermuda registered agent services for one year
- Full administrative 24/7 support from your personal manager at Astra Trust
After your Bermuda offshore company formation, you will receive the following Bermuda company documents:
- Certificate of Incorporation issued by the Bermuda Registrar of Companies
- Memorandum of Association stamped by the Bermuda Registrar of Companies
- Articles of Association stamped by the Bermuda Registrar of Companies
- Register of directors
- Register of shareholders
- Resolution of appointment of first directors
- Written resolution adopted by directors upon incorporation
- Share certificate
- Consent letter of the director
- Other documents depend on the services ordered
Need More Help To Setup Your Offshore Company in Bermuda?
Just get in touch with us. We typically respond within 2 hours
Company Name In Bermuda
Under the Companies Act 1981 of Bermuda, the company’s name shall end with the following words:
- “Limited”;
Alternatively, the abbreviation “Ltd.” may be used.
The act also allows the use of foreign names in the last part of the company’s name instead of the abovementioned words. The following words or their abbreviations may be used:
The proposed company name can be checked for availability by Astra Trust within 1-2 working days.
The company name cannot suggest any connection to Her Majesty, the Royal Family, the Government or any department thereof in the United Kingdom or elsewhere. It also cannot be a name that is prohibited by the laws and regulations of Bermuda.
Board Of Directors And the Shareholders Of Bermuda Company
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.
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. Two types of shares 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.
Different Types of Companies in Bermuda
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:
- Greater Flexibility: They enjoy greater flexibility in their operations as they are not bound by the same local regulations and restrictions as local companies. This means they can adapt more quickly to changing market conditions and take advantage of new opportunities as they arise.
- Greater Efficiency: They are designed to operate with maximum efficiency. An offshore company set up in Bermuda is typically done to pursue specific business objectives or transactions.
- Greater Privacy: Exempted companies offer greater privacy and confidentiality than local companies, as they are not required to disclose the names of their directors or shareholders in public records.
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:
- Company Limited by Shares: This is the most common type of company, where the liability of each shareholder is limited to the amount remaining unpaid on the shares held.
- Company Limited by Guarantee: Often used for charitable businesses, this type of company limits the amount shareholders may need to pay toward the company’s assets in the event of closure.
- Unlimited Liability Company: With this type of company, there is no limit on the liability that shareholders may face. It has many of the standard traits, such as a board of directors, but comes with added risk.
- Limited Duration Company: Instead of focusing on capital, this type of company has a fixed expiration date. This could be set after a certain activity is completed, or it could be set for an unspecific date, such as the death of a shareholder.
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.
Privacy of a Bermuda Company
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.
The registers of directors, shareholders, and beneficial owners are kept by the company’s registered office, typically a local law firm or trust company. The register of directors is kept by the registrar of companies in Bermuda. 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.
Economic Substance Requirements In Bermuda
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:
- Investment funds
- Companies deemed to be tax residents in other jurisdictions
- Local companies and local partnerships
For companies not listed above, economic substance requirements apply if they engage in any of the following business activities:
- Banking business
- Distribution and service centre business
- Financing and leasing business
- Fund management business
- Headquarters business
- Holding company business
- Insurance business
- Intellectual property business
- Shipping business
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.
Reporting Requirements in Bermuda
This jurisdiction has a number of reporting requirements for companies, including:
Annual filings
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.
Beneficial ownership reporting
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.
Economic substance reporting
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.
Key Features of a Bermuda Company
General Information
- Jurisdiction – British Overseas Territory
- Entity Type – Exempted Company
- Corporate Tax – 0%
- Currency – BD$
- Currency Exchange Control – No
- Legal Framework – Common law
- Recognition of Trust – Recognised
- Court of Final Appeal – Judicial Committee of the Privy Council
Business Activity Restrictions
- Business Activity Restrictions – No. Subject to standard licensed types of activities
- Economic Substance Requirements – Applicable
- Prohibition of Business Within Bermuda – Applicable
Requirements to Directors
- Register of Directors – Closed for public
- Minimum Number of Directors – 1
- Corporate Director – Available
- Local Director – Not required
- Nominee Director – Available
Requirements to Secretary
- Secretary – Not required (optional)
- Local Secretary – Not required (optional)
Requirements to Shareholders
- Register of Shareholders – Closed to the public
- Minimum Number of Shareholders – 1
- Corporate Shareholder – Available
- Annual General Meeting – Not required
- Location of Meetings – Anywhere in the world
- Nominee Shareholder – Available
Share capital
- Minimum Authorised Share Capital – No requirements
- Standard Authorised Share Capital – USD 50,000
- Minimum Issued Share Capital – USD 1
- Currency of Share Capital – USD or any other
Reporting Requirements
- Preparation of Accounts – Not required
- Filing of Annual Return – Not required
- Publicity of Annual Return – Closed to the public
- Audited Accounts – Not required
Other features
- Redomiciliation to/from Jurisdiction – Permitted
- Shelf companies – Available
Frequently Asked Questions
Why consider Bermuda for company formation?
Bermuda offers several advantages, including zero corporate income tax, political stability, a robust legal framework, and a strategic location for international business operations.
What types of companies can be formed in Bermuda?
The most common types of companies that can be formed in Bermuda include exempted companies, local companies, and limited partnerships. Exempted companies are particularly favoured for international business due to their tax benefits.
What documents are needed to register company in Bermuda?
Essential documents include a completed application form, identification documents for directors and shareholders, a business plan, and a memorandum and articles of association.
What are the tax implications for a Bermuda company?
Companies incorporated in Bermuda benefit from no corporate income tax, no capital gains tax, and no value-added tax (VAT), making it a tax-efficient jurisdiction for business operations.
What are the requirements for Bermuda company formation?
Key requirements include having a minimum of one director and one shareholder, both of whom can be individuals or corporate entities. Additionally, a registered office in Bermuda is necessary.
How long does the Bermuda company formation process take?
The company formation process in Bermuda typically takes between one to three weeks, depending on the complexity of the application and the responsiveness of the involved parties.
How can I start the Bermuda company formation process?
To initiate the process, contact the Astra Trust team specialising in Bermuda company formation. We will guide you through the necessary steps, documentation, and compliance requirements to successfully establish your company.
Can non-residents own a company in Bermuda?
Yes, non-residents can fully own and control an exempted company in Bermuda, making it an attractive option for international investors.
Are there any restrictions on business activities for Bermuda companies?
Exempted companies are generally free to conduct any lawful business activities, with some exceptions for certain regulated industries such as banking and insurance, which require specific licences.
Are there any ongoing compliance requirements after Bermuda company formation?
Yes, companies must adhere to annual filing requirements, including submitting an annual return and maintaining proper accounting records. Additionally, there may be a requirement to hold annual general meetings.
