Company Formation Bermuda
Bermuda is an established offshore jurisdiction. A group of islands in the Atlantic Ocean on the Carolina coast, Bermuda provides a favorable environment for business setup. With no exchange controls for non-resident undertakings Bermuda is politically and economically stable.
Offshore Company Formation in Bermuda
The Companies Act 1981 introduced Exempt Company in Bermuda. An Exempt Company is not subject to currency or capital controls and is free from all taxation. The exemptions can be extended until 2016 and reviewed for a further period.
- It is possible to legally keep profits earned from international operations with minimum taxation in Bermuda
- Bermuda is reputed for its standing as an International financial and banking centre
- 100% Foreign ownership is permitted.
- Minimum issued capital requirement is just US$1
- No annual audit or tax returns required for exempt companies
- New company formation procedures in Bermuda are complex
- A government license fee of US$1,680 is applicable for companies with minimum authorized share capital of US$12,000
- Two directors are required for company registrations in Bermuda, although they need not be a resident of Bermuda.
- Corporate directors are not permitted.
- Bermuda co-operates with the Organization for Economic Co-operation and Development (OECD) by sharing bank account holders information with relevant governments
- A Bermuda Exempted Company may not trade or own real estate within Bermuda. BEC’s are not permitted to engage in banking, insurance, assurance, reinsurance, fund management, collective investment schemes or provide investment advice.
Name of the company must end with one of the following suffixes: Limited or Ltd.; Corporation or Corp.; Incorporated or Inc.
The Bermuda Monetary Authority will only refuse a name if it is identical, almost identical or phonetically the same as a name already registered or implies state sponsorship.
Use of certain words such as Bank, Insurance and Group will require special permission.
There are no exchange or capital controls in Bermuda
The law is the common law based on the British system
A registered office is required to be maintained