Setting up a company in Bermuda involves choosing the right structure, reserving a company name, preparing incorporation documents, and submitting them to the Registrar of Companies and the BMA for approval.
Once government fees are paid and a local registered office and secretary are appointed, the company can be incorporated within as little as one day.
After formation, businesses must maintain compliance through annual filings, proper record-keeping, and, where applicable, economic substance reporting.
This article walks you through the entire process of setting up a company in Bermuda in 2025. It explains the different company structures available, highlights foreign ownership rules, outlines share capital and fee requirements, and provides practical insights on banking, taxation, and compliance.
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The information in this article is for general guidance only. It does not constitute financial, legal, or tax advice, and is not a recommendation or solicitation to invest. Some facts may have changed since the time of writing.
Why do companies set up in Bermuda?
Bermuda has built its reputation as one of the world’s premier offshore financial centers. Its appeal rests on a combination of legal stability, regulatory transparency, and tax efficiency that continues to attract global investors.
The territory operates under a well-developed legal system based on English common law, providing businesses with a strong framework for contracts, dispute resolution, and corporate governance.
One of the strongest incentives for doing business in Bermuda is its favorable tax regime. There are no corporate income taxes, capital gains taxes, or withholding taxes on dividends and interest.
Instead, companies pay annual government fees and, where applicable, payroll taxes. This makes Bermuda especially attractive for international holding companies, insurance groups, and investment funds seeking a predictable, low-tax environment.
Beyond taxation, Bermuda is known for its efficient incorporation process, which can often be completed in a matter of days.
The Bermuda Monetary Authority ensures regulatory standards that align with global expectations, giving investors confidence in compliance and reputation.
The jurisdiction also boasts a highly developed financial services sector, skilled professionals, and proximity to both North America and Europe, making it a strategic hub for cross-border operations.
Together, these factors position Bermuda as more than just a tax haven; it is a stable, sophisticated jurisdiction where businesses can thrive in the long term.
How to Register a Company in Bermuda
The first step is establishing a company structure. Bermuda offers several business structures, but the two most common are exempted companies and local companies. The choice between them depends largely on where you intend to conduct business.
Exempted companies are designed for international operations. They can be 100% foreign-owned and are exempt from Bermuda’s exchange control rules.
These companies are not allowed to carry out business within Bermuda, except in very limited circumstances such as working with other exempted companies, acting as holding entities, or conducting business with the government.
For most foreign entrepreneurs, this is the preferred vehicle because it allows them to operate globally while benefiting from Bermuda’s tax and regulatory advantages.
Local companies, on the other hand, are intended for businesses that will operate within Bermuda itself. By law, at least 60% of the ownership and board must be held by Bermudians. These entities are ideal for retail, services, and other ventures that rely on the domestic market.
Other options include limited liability companies (LLCs), partnerships, and branch offices. While less common, they may be suitable for specialized operations.
For example, partnerships are sometimes used by professional services firms, while branch offices allow existing international businesses to establish a presence in Bermuda without creating a new legal entity.
How much does it cost to set up a company in Bermuda?
The main financial consideration for starting a business in Bermuda is the government fee. For exempted companies, annual fees range from US$1,995 to over US$30,000, depending on the level of authorized share capital.
Local companies generally pay lower fees. In addition, small stamp duties may apply when filing incorporation documents. These costs are predictable, allowing investors to plan ahead.
Opening a company in Bermuda does not require a large initial investment otherwise. Most exempted companies can be incorporated with a minimum share capital of just US$1.
Higher thresholds apply only to regulated industries such as insurance, where minimum capital can exceed US$100,000 depending on the license class.
What do you need to register a company in Bermuda?
To incorporate, several key documents and details must be prepared and filed with the Registrar of Companies:
- Memorandum of Association – outlining the company’s purpose and authorized capital.
- Articles of Association – governing how the company will be managed.
- Shareholder and director information – including personal details and declarations.
- Beneficial ownership declarations – required for exempted companies to confirm who ultimately controls the business.
- Registered office address – every company must have a physical presence in Bermuda.
- Company secretary appointment – the secretary must be a Bermuda resident.
These documents ensure the company is properly structured, transparent, and compliant with local regulations. Once submitted and approved, the company can be incorporated in as little as one business day.
What is the Bermuda Monetary Authority?
The Bermuda Monetary Authority (BMA) plays a central role in regulating company formation, particularly for exempted companies.
Before incorporation, the BMA must review and approve beneficial ownership information to ensure transparency and compliance with international standards. This includes background checks on shareholders and directors, as well as verification of the source of funds.
For companies operating in regulated sectors such as insurance, investment funds, or financial services, the BMA also issues licenses and ongoing oversight.
This regulatory framework gives Bermuda credibility as a clean and well-regulated jurisdiction, while still keeping the incorporation process efficient.
How long does it take to incorporate in Bermuda?
Bermuda is known for its fast turnaround. If a company does not require ministerial approval, incorporation can be completed in one business day once all documents are filed. If consent from the Minister of Finance is required, the process typically extends to about one week.
This efficiency makes Bermuda one of the quickest offshore jurisdictions for incorporation, appealing to businesses that want to establish operations without long delays.
Can foreigners fully own a company in Bermuda?
Yes, foreign investors can fully own a Bermuda company, provided it is set up as an exempted company.
This structure was specifically created to attract international capital and allows complete foreign ownership without requiring Bermudian shareholders or directors.
For many multinational businesses, hedge funds, and insurance companies, this flexibility is a key reason to incorporate in Bermuda.
By contrast, local companies come with strict ownership restrictions. To protect the domestic economy, Bermuda requires that at least 60% of the shares, directors, and voting rights remain in Bermudian hands.
Foreign investors can participate, but only as minority shareholders unless they secure special permission from the government.
How to Open a Corporate Bank Account in Bermuda
Once incorporated, a Bermuda company will generally need to open a corporate bank account. This is an essential step for handling transactions, paying fees, and conducting international business.
Banks will require detailed documentation, including the company’s incorporation papers, proof of beneficial ownership, business plans, and in some cases, references from existing banking relationships. This due diligence ensures that funds entering the financial system are legitimate and traceable.
Many investors rely on corporate service providers in Bermuda to streamline the process, as these firms maintain established relationships with local banks and can help prepare the necessary documentation.
While the process can take several weeks, having a local account strengthens the company’s credibility and operational capacity.
Bermuda has a sophisticated banking sector, but the process is more rigorous than in some jurisdictions due to strict compliance standards.
Is there corporate tax in Bermuda?
No, there is not unless your business is a multinational corporation. One of the strongest draws for investors is Bermuda’s favorable tax regime.
The jurisdiction imposes no corporate income tax, capital gains tax, or withholding tax on dividends, interest, or royalties.
This makes Bermuda especially attractive for holding companies, insurance groups, and international investment structures seeking tax neutrality.
However, as of 2025, Bermuda has introduced a 15% corporate income tax on multinational enterprise (MNE) groups with annual revenues of €750 million or more, aligning with global efforts against base erosion and profit shifting (BEPS).
For the vast majority of companies that are not meeting this revenue threshold, they will continue to be exempt from corporate income tax.
Instead of income taxes, companies pay annual government fees and, if they employ staff in Bermuda, payroll tax.
Payroll tax is applied progressively, with rates ranging from about 1.5% to 9.5% depending on income bands. For companies operating entirely offshore with no Bermuda-based employees, payroll tax is usually not an issue.
Other taxes exist but are narrowly applied. These include customs duties on imported goods and land tax on property ownership.
For most exempted companies, however, the lack of corporate and investment taxes provides a major financial advantage.
What are the compliance requirements in Bermuda?
Even though Bermuda offers a light tax burden, companies must meet ongoing compliance obligations.
All companies are required to maintain accurate records, appoint a Bermuda-resident secretary, and file annual declarations with the Registrar of Companies. These filings typically confirm the company’s authorized share capital and are used to calculate annual fees.
Since the introduction of economic substance rules, certain companies particularly those engaged in relevant activities such as banking, insurance, and fund management must also demonstrate that they have adequate presence in Bermuda.
This ensures the jurisdiction aligns with global standards against brass plate entities.
Failure to comply with annual filings or substance rules can result in fines, penalties, or even the striking-off of the company. For this reason, many investors work with local legal or corporate service providers to ensure smooth compliance.
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