Company Incorporation in Bermuda – Benefits
No taxes: Bermuda does not have any income or corporate tax. However, citizens of countries which tax the income worldwide, including U.S, should report their income to the relevant tax authority;
Privacy: Corporations in Bermuda do not have to file the information about the owners, directors, officers or shareholders with the government register. So the information is not part of the public records and remains private;
One shareholder. The corporation should have only one shareholder, to incorporate the company in Bermuda.
Specificity of Company Incorporation in Bermuda
If a corporation is formed in Bermuda for international investment or trade, the company type is exempt company. If any other type of company is formed in Bermuda, the residents of Bermuda should own at least 60% of the company.
Bermuda corporations should choose a unique name which is significantly different from the names of existing corporations. Ideally at least three different corporate names should be submitted, so that approval process is faster. Corporations in Bermuda should have a registered agent locally, who has an office address which is local.
The address should be chosen for processing service requests and sending official notices. All Bermuda corporations should have at least one shareholder. This shareholder may be a corporation or private individual. For privacy, nominee shareholders are permitted.
Typically, the time for formation of a corporation is three weeks in Bermuda. Shelf corporations are not available in Bermuda.
It is mandatory for Bermuda corporations to have a minimum of two directors, who are individuals. The directors are expected to appoint the President, secretary and treasurer, the three officers of the corporation. The names of the directors and shareholders are not registered, so they remain private. Only the memorandum and articles of association of the corporation are available to the public
Typically, the exempt corporation in Bermuda will have a standard capital of US$12,000. This is divided into 12000 ordinary voting shares, corresponding to a capital of at-least $1 per share. Shares may be issued with or without any kind of voting rights. Preference shares, redeemable shares and registered shares are some of the other types of shares permitted. Bearer shares are not allowed.
If a corporation does not own any real estate in Bermuda and does not have any business activity in the country, the Bermuda corporation will be exempt from income and corporate taxes. The annual registration fee for a Bermuda corporation with authorized capital of US$ 12,000 or less, is US$ 1,780. The annual fee increases proportionately based on the authorized capital amount, with a maximum of US $27,825 for a corporation whose authorized capital is US$ 500 million or more. Bermuda corporations do not have to maintain annual records or hold their annual general meeting in Bermuda.
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FAQ (Frequently Asked Questions)
1. How long does it take to register a company in Bermuda?
As a rule, registration of a company requires no more than one week. A company may have from one to several directors and at least one shareholder. Taxes on income and capital gains are not paid.
2. What type of company is most commonly used to register in Bermuda?
The Limited Opportunity type of company is most commonly used by shareholders. This type of company limits the liability of each shareholder to a certain amount that is unpaid on the shares they own.
3. Can a company registered in Bermuda be owned by a resident of another country?
In Bermuda, it is allowed to register companies that will be owned by foreign residents.
4. What are the requirements to establish an E.L.L.C. – Exempt Limited Liability Company?
This organizational-legal form – is an analogue of an LLC. But its significant advantage is that its profits are not taxable.
- According to the LLC Agreement, the LLC has the legal capacity, rights, authority and rights, authority and privileges of a natural person.
- Any one or more individuals may create an LLC for any lawful business, purpose, or activity. The process of creating an LLC is simple and requires the filing of a certificate of formation with the Registrar of Companies and the payment of the appropriate fee. The Registrar will maintain the LLC registry in Bermuda.
5. What is the minimum share capital of a Bermuda company?
The minimum share capital of a Bermuda company is $1, shares of no par value are not permitted and bearer shares are not permitted.
6. What are the annual costs for maintaining a company in Bermuda?
Incorporation costs in Year 1 start from EUR 2500.
7. Are there any restrictions on company activities?
In Bermuda, the 60/40 rule requires a company to be controlled by at least 60% of Bermudians. In addition, some restrictions regulate ownership of land by businesses that are local or are exempt from taxation.
8. How can I get more information?
Private Financial Services provides a full range of corporate services in Bermuda, including company registrations, bank accounts, license assistance, cryptocurrency and fintech projects, the gambling industry, and much more.
The Private Financial Services team will be happy to discuss matters in more detail.