Bermuda company registration

DOING BUSINESS IN BERMUDA IN 2018

For over a decade, Healy Consultants Group PLC has been efficiently and effectively assisting our Clients with i) Bermuda company registration ii) banking solutions iii) workspace rental solutions and iv) tax compliance.

Summary table of Bermuda company registration

SummaryTax resident LLCExempted companyPermit CompanyTrustFund
Also known asLLCInternational companyBranchDiscretionary trustInstitutional fund
Best use of company?All products and servicesGlobal tradingManufacturing and export tradingAsset managementFinancial services
How soon can you invoice Clients/sign sales contracts?2 weeks2 weeks2 weeksCannot trade3 weeks
How soon can you hire staff?2 weeks2 weeks2 weeksCannot hire3 weeks
How soon can you sign a lease agreement?1 week1 week1 week1 week1 week
How long to supply corporate bank account numbers?4 weeks4 weeks4 weeks5 weeks5 weeks
How long to supply company registration/tax numbers?2 weeks2 weeks2 weeks3 weeks3 weeks
Corporate tax rate on annual net profits?0%0%0%0%0%
Limited liability entity?YesYesYesYesYes
Government grants available?NoNoNoNoNo
Government approval required for foreign owners?NoNoNoNoNo
Resident director/partner/manager/legal representative required?YesYesYesYesYes
Minimum paid up share capital?US$1US$1US$1US$1US$100,000
Can bid for Government contracts?YesYesYesNoNo
Corporate bank account location?Bermuda Commercial BankBank of ButterfieldClarien BankHSBCHSBC
Can secure trade finance?YesYesYesNoNo
VAT payable on sales to local customers?0%0%0%0%0%
Average total business set up engagement costs?US$16,980US$25,580Request a proposalRequest a proposalRequest a proposal
Average total engagement period?2 months2 months2 months2 months2 months

Bermuda company registration summary

Press the link headings below to read detailed, relevant, up to date information.

  • Advantages of Bermuda company registration

    Bermuda business advantages and challenges

    1. If properly structured, a Bermuda Exempt Company (BEC) can house international profits while legally minimising international taxation;
    2. 100% foreign ownership is permitted for companies that do not conduct any local business. A minimum of one shareholder is required, and corporate shareholders are permitted;
    3. Unlike many offshore jurisdictions, Bermuda has the positive factor of being an international financial and banking centre with oversight from the UK as a British Overseas Territory, and has one of the world’s highest per capita incomes;
    4. There is a minimum issued capital requirement of just US$1 when incorporating in Bermuda;
    5. Healy Consultants can open a corporate bank account to support Bermuda company registration;
    6. After registering a company in Bermuda, an exempt company is not required to submit annual tax returns or audited financial statements;
    7. Bermuda is an excellent location for incorporation of companies belonging to the Information, Communications and Technology Industry (ICT). This is because Bermuda has i) a highly educated and talented labour pool, ii) ties with various global ICT projects and IT companies round the world and iii) world-class infrastructural facilities including redundant fibre optic cables directly linking Bermuda to North America, the Caribbean and South America.
  • Disadvantages of Bermuda company registration

    1. Bermuda company formation procedures are more complex than many offshore jurisdictions;
    2. A company with authorised share capital of more than US$12,000 must pay an annual government license fee of US$1,870 prior to registration. This threshold is lower than in other similar territories, with a US$50,000 threshold in the Cayman Islands, or 50,000 shares of any value in the BVIs;
    3. A Bermuda exempt company must have a local/resident body included into the company structure. This requirement can be achieve by having i) an individual resident director or ii) a resident company secretary or iii) a resident representative. The company secretary and the representative may be an individual or a corporation, usually supplied by a local trust company. Healy Consultants can assist with appointing the relevant resident body;
    4. In 2009, the Organisation for Economic Cooperation and Development (OECD) grey-listed Bermuda for needing to ‘substantially implement internationally agreed tax standards’. However, Bermuda has substantially improved this situation, implementing strong AML/CFT regulations and signing up to the OECD’s automatic exchange of information protocol, exchanging tax information with a wide range of jurisdictions. As a result, Bermuda is now on the OECD white list;
    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 unless it has a licence;
    6. Bermuda generally levies a high customs duty of around 22.25% on the transaction value of all imported goods. Moreover, vehicles designed for the transport of passengers are levied a 75% duty on the first US$10,000 and 150% on the amount above US$10,000. Other vehicles designed for the transport of goods normally are dutiable at 33.5%.

Company registration

  • Time to incorporate: Three weeks
  • Cost to set up: US$16,980
  • Minimum capital: US$1
  • Physical office required: No

Required appointments

  • Shareholders: 1
  • Directors: 2
  • Company secretary: Yes
  • Resident director: Yes

Key facts

  • Corporate tax rate: 0%
  • Corporate tax base: Territorial
  • Shelf companies: Unavailable
  • Main company type: Exempt company

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Contact us

For additional information on our company registration services in Bermuda, please email us at email@healyconsultants.com. Alternatively please contact our in-house country expert, Mr. Petar Chakarov, directly:
client relationship officer - Petar
bermuda-tourism bermuda monetary authority bermuda ministry of finance bermuda-customs bermuda business development agency