If properly structured, Bermuda company formation is an excellent way for entrepreneurs to conduct international, tax-exempt business. The following information will help you determine whether Bermuda company formation is the optimum corporate structure to fulfill your international business objectives. |
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Advantages of Bermuda Company Formation |
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If properly structured, a Bermuda Exempt Company (BEC) can house international profits while legally minimising international taxation. |
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| 2. | 100% foreign ownership is permitted with Bermuda company formation. A minimum of one shareholder is required, and corporate shareholders are permitted. |
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| 3. | Unlike many offshore jurisdictions, Bermuda company formation has the positive factor of being an international financial and banking centre with one of the world's highest per capita incomes. |
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| 4. | There is a minimum issued capital requirement of just US$1 with Bermuda company formation. |
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| 5. | Healy Consultants can open a corporate bank account to support Bermuda company formation. |
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| 6. | Following Bermuda company formation, an exempt company is not required to submit annual tax returns or audited financial statements. |
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Disadvantages of Bermuda Company Formation |
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| 1. | Bermuda company formation procedures are more complex than many offshore jurisdictions. |
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| 2. | A company with the minimum authorised share capital of US$12,000 is required to pay an annual government license fee of US$1,870 prior to Bermuda company formation. |
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| 3. | A minimum of 2 directors are required for Bermuda company formation. Bermuda company directors are not required to be resident in Bermuda. Corporate directors are not permitted. |
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| 4. | In 2009, the Organisation for Economic Cooperation and Development (OECD) grey-listed Bermuda for needing to ‘substantially implement internationally agreed tax standards’. However, in its aim to comply with OECD guidelines, Bermuda has increased to hold 23 Tax Information Exchange Agreements (TIEAs) with different countries.
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| 5. | A BEC may neither trade nor own real estate within Bermuda. In addition, it is not permitted to engage in banking, insurance, assurance, reinsurance, fund management, collective investment schemes, or giving investment advice.
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Considerations for Offshore Company Formation |
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| 1. | Offshore companies can be excellent, tax-efficient vehicles for entrepreneurs to conduct their international business. When selecting an offshore jurisdiction, it is important to evaluate variables such as: i) its international reputation for conducting business; ii) legalities that govern investor activity; iii) the stability of its economy; and iv) the political stability of the market.
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| 2. | While offshore corporations can have the significant advantage of legitimately minimising tax obligations, there can also be the disadvantage of carrying the tax haven stigma associated with some jurisdictions. More information on Healy Consultants offshore company services can be found on the following pages:
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| Contact Us | ||||||||||||||||
| For more information on Bermuda Company formation, contact email@healyconsultants.com or telephone us at (+65) 6735 0120. | ||||||||||||||||
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