While the island is the world’s largest captive domicile for insurance companies, it also offers all international businesses a number of advanced offshore solutions including company incorporation.
As a British Overseas Territory, Bermuda boasts stability as a nation while still enacting its own laws and regulations. Another benefit of incorporating in Bermuda is that the government imposes no tax on companies except an annual government fee. The incorporation process itself is extremely efficient, usually taking no longer than 5 business days.
There are two main types of Bermuda companies:
Exempted companies are incorporated by non-Bermudians seeking to do business outside of Bermuda from a place of business within Bermuda. They are exempt from the “60/40” rule requiring at least 60% of the share capital to be owned by a Bermudian. Additionally, exempted companies and their shareholders do not attract any income or profit tax, withholding tax, capital gains tax or capital transfer tax.
Local companies are incorporated by Bermudians to carry on business in Bermuda. At least 60% of the company must be owned by Bermudians. These are the only companies permitted to carry on their business enterprise within Bermuda. In prescribed circumstances a non-Bermudian may own more than 40% of a local company after obtaining the necessary license.
In addition to incorporating general trading companies it is also possible to structure companies as fund and hedge fund companies, segregated accounts companies, mutual companies, companies limited by guarantee, unlimited liability companies and limited duration companies.