Bermuda company structures: at a glance

Hawksford

Last updated: 15 December 2025 |

Americas | Bermuda

Options for registering companies in Bermuda

Bermuda is a leading jurisdiction for international business, especially in insurance, reinsurance and investment funds, due to its regulatory maturity and tax neutrality.

Bermuda offers international companies the following legal structures for establishing a local presence:

Exempted company

The exempted company is the most common vehicle for international businesses (non-Bermudians) operating from Bermuda. It is defined by its core purpose - to conduct business outside the islands.
The primary purpose is conducting international business activities, such as holding intellectual property, serving as a reinsurance entity or acting as an investment vehicle.
The legal structure is exempted from the requirement that at least 60% of its equity must be owned by Bermudians, allowing 100% foreign ownership.
It is generally restricted from operating or competing for business within the domestic Bermuda market, though limited local activities with a licence may be permitted.
Must have at least one director and a secretary.
Bermuda historically imposes no taxes on profits, income, dividends or capital gains. Exempted companies routinely receive a Tax Assurance Certificate guaranteeing this exemption will remain until March 31, 2035 (though a new 15% corporate tax on very large multinational groups began in 2025).
Governance is highly flexible, determined by a private LLC agreement among its members.

Limited liability company (non-exempted LLC)

The Local LLC is designed for businesses that intend to operate within the island's domestic economy.
It is subject to the 60/40 rule, which generally requires that at least 60% of its equity and the majority of its directors must be beneficially owned and controlled by Bermudians.
Due to the local ownership rule, this structure is generally not an option for companies seeking 100% foreign ownership for international activities.
Subject to the same tax-neutral status (no corporate income tax), but liable for local taxes such as payroll tax and land tax.

To help you choose the right structure, we have created an ‘at a glance’ summary table for the common company types that outlines key differences in formation processes, requirements and timelines. It serves as a valuable resource for foreign companies looking to setup or expand a business in Bermuda.

Comparison of the common types of companies in Bermuda

Key information	Exempt company	Limited liability company
Commonly used for	offshore operations	Domestic operations (non-exempt)
Minimum capitalisation (US$)	$1	$1
Limited liability	Yes	Yes
Time to incorporate	One week	Two weeks
Tax rate (CIT)	0	0
Resident management	No	Yes (60%/40% rule)
Cost indication (US$)	$7,800	$10,000