The jurisdiction is known for having one of the highest per capita incomes. This is largely due to the fact that Bermuda is offshore, which allows investors to minimize tax costs and obtain the desired confidentiality regarding their activities and income. A well-developed economy, excellent infrastructure and loyal corporate legislation contribute to the fact that many foreign entrepreneurs are eager to register their company in this jurisdiction. If you want to appear among entrepreneurs operating in this jurisdiction, your business presence can be established in one of the following forms.
Main forms of legal and business presence
If you are considering the option of establishing a company in Bermuda, your business presence can be organized here in one of the following forms:
Limited Liability Company – a flexible option for doing business in Bermuda, which may be suitable for small and medium-sized businesses. This entity can be created by one or more persons who are not liable for the results of the company's activities, except for the amount of contributions they must make. Management is carried out directly by the members of the limited liability company.
Exempt Company – the most convenient and affordable organizational and legal form of a legal entity. Its main advantage is the complete exemption of profits from tax payments, while retaining the characteristics of a limited liability company in terms of favorable limitations on the financial liability of shareholders. More precisely, they are liable only to the extent of the amounts not paid on their shares. This company can be established by one or more persons, natural or legal. The company is also required to maintain a register of its members. The status of an exempt company should be reflected in its statutory documents. It must also convene an annual general meeting at least once a year. At least one director is required to manage the affairs of the company. Every Bermuda exempt company is required to maintain a register of beneficial owners and to update the information contained therein. This information is confidential by default and may be disclosed in limited quantities only in certain cases. There are certain restrictions on the activities of an exempt company in Bermuda, for example, it cannot own land in this jurisdiction or carry on business.
Permit Company – an option suitable for foreign companies that are granted the right to carry on business after obtaining permission from the Minister of Finance. Such a company will have a place of business in Bermuda with the ability to carry on business outside the jurisdiction. In this case, the appointment of a representative is also required. The considered option for doing business also falls under certain restrictions, such as the prohibition on acquiring land in Bermuda.
Union Fund Company – can be a limited liability company that has an authorized capital and is established for the purpose of investing the funds of its members for their mutual benefit. The liability of these members in this case is limited to the amount not paid on their shares.
General partnership – a business option in which business activities are carried out jointly by two or more partners, who bear the same joint and several liability for all results of these business enterprises.
Limited partnership – another type of company that can be organized by (i) one or two persons who are unlimited partners and are jointly and severally liable for the management and results of such a company, and (ii) one or more persons who are not liable for the debts of such a company.
Trust – an option suitable for managing assets with the ability to provide sufficient protection for them. Trusts are not allowed to carry out commercial activities.
Registration Requirements and Steps
Establishing a company in Bermuda may require completing the following registration steps:
Clarifying the business priorities that you will implement through the local organization. Such activities should not be mentioned in the list of restricted activities.
Choosing the company name and coordinating its verification with the state registrar of legal entities.
Choosing the company's legal address.
Determining the group of shareholders and collecting information about these shareholders.
Appointing directors.
Developing the Memorandum of Association and Articles of Association.
Determining the amount of the company's authorized capital (the minimum paid-in capital must be 1 USD).
Submitting an application for registration of the legal entity together with the prepared package of documents to the registry official.
Paying stamp duties and state duties.
Opening a corporate bank account.
Obtaining licenses and special permits (required for certain types of regulated businesses activities).
On average, all bureaucratic formalities take about four weeks. However, each case of registration may vary. We suggest that you contact our specialists to receive more precise advice on the matter.
Legal and regulatory framework
The establishment of companies in Bermuda is mainly regulated by the Companies Act. Other legal acts important for doing business are the Limited Liability Companies Act, the Partnership Act, the Limited Partnership Act and the Bermuda Economic Content Act.
Local legislation does not contain restrictions on the types of activities, so foreign investors can choose any area. Most often, legal entities providing insurance or financial services (for this you need to obtain a special license) are registered in this territory, as this creates favorable conditions for these types of activities.
The Bermuda Companies Registry at the Bermuda Ministry of Economic Development and the Bermuda Monetary Authority are the main government bodies responsible for registering doing business in Bermuda.
Advantages of the jurisdiction
The main advantages of the Bermuda company registration procedure are as follows:
overall economic and political stability;
the entire process is clearly regulated and usually does not cause problems for foreigners;
short time required to complete the process;
the personal presence of the shareholder is not required, documents can be issued remotely;
there are no requirements for the mandatory payment of the authorized capital in full - it is possible to pay only 1 US dollar;
nominee shareholders and/or directors can be appointed;
there is no need to publish public information about the company in open sources and any information about the beneficiaries is protected;
there is no mandatory requirement to provide the annual financial statement to the enterprise;
no exchange controls;
double taxation treaties with over 40 countries.
Bermuda Tax System
If you are considering the option of incorporating a company in Bermuda, these key highlights may be helpful during your preliminary assessment:
Corporate Tax – Not Applicable (None)
Personal Income Tax – None
Value Added Tax – None
Withholding Tax (for non-residents) – None on dividends, interest and royalties
Capital Gains Tax – Corporate – None, Personal – None
How Our Experts Can Help
Let’s assume that you are considering establishing or purchasing a company in Bermuda. In this case, the lawyers of "Smart Startup UK" are ready to put this option into practice by providing legal support for the following aspects of business registration in Bermuda:
Request and collect all the data and documents for opening a business in Bermuda;
Choose the name and in the interests of the client, all negotiations are conducted by us with local authorities and banks;
We arrange the legal address, accounts and employees, as well as all the necessary documents for applying for the future company;
We provide comprehensive legal support for the further functioning of the new legal entity in Bermuda.
The portfolio of specialists of "Smart Startup UK" is formed by more than 8,000 cases in the field of registration and support of international business. Our lawyers will apply this experience to the goals of your project.
CREATE A COMPANY
Company name check and reservation
Company registration, including government fees
Obtaining an administrative identification number
Registering the company with government agencies
Writing a company charter
A set of company charter documents in electronic form
Bank contribution for the company's authorized capital
Obtaining a foreign investment permit
Opening an account at: HSBC Bank Bermuda, Bermuda Commercial Bank, Bermuda Credit Union Co-Op Society, Butterfield.
Opening a personal bank account
Apostille and translated corporate documents
Obtaining a residence permit
Free consultation
Help with online trading and opening an account at viva.com for online trading
Accounting services - 12 months
Accounting services
Annual renewal 3000 Euro (paid from the second year)
*Within 35 days
IMPORTANT! We can provide you with the initial share capital (if the amount is over 5000 Euro) for registering your company in the form of a loan from our company.
Please, if you are interested, make an inquiry to us.
What is the procedure!
1. You submit an application for company registration using the application form.
2. We check whether the company name for registration is free and eligible for registration.
3. Choose a bank that meets your company's needs from a list of Smart Startup UK partner banks.
4. We send you a proforma invoice for payment to be paid to our bank account + the amount for your company's initial capital.
5. You receive all the necessary company documents for reconciliation.
6. You receive details of your newly opened bank account.
7. Within the specified period (for Bermuda it is 35 days) you receive all the services included in the package.
8. You can manage all the services included in the package through our platform, as our team works 24/7 and you can get help from us within up to 30 minutes. We have built an internal ticket system for our customers, through which we process each of your support requests.
All services such as management, accounting, bank account opening requests, licensing, tax return filing, tax payment and others are carried out through your account on our platform, making it easier to manage your business!
