Bermuda Company Formation
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 legally house international profits while 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 presents a good image internationally because it is 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$1,680 prior to Bermuda company formation. |
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| 3. | Two directors are required for Bermuda company formation, although they need not be resident in Bermuda. Corporate directors are not permitted. |
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| 4. | Bermuda agrees to cooperate with the Organisation for Economic Cooperation and Development (OECD) and share information on bank account holders at Bermudan banks with account-holders' governments..
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| 5. | Bermuda has signed a total of 18 Tax Information Exchange Agreements (TIEAs) in its aim to comply with OECD guidelines and will be compliant by end of 2009.
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| 6. | A BEC may not trade within Bermuda, or own real estate there. In addition, it is not permitted to engage in banking, insurance, assurance, reinsurance, fund management, collective investment schemes, giving investment advice.
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Considerations for Offshore Company Formation |
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| 1. | Offshore companies can be an excellent, tax-efficient vehicle 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 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, please email email@healyconsultants.com or telephone us at (+65) 6735 0120 | ||||||
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