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
Information verified against Ministry of Finance - Department of Registrar of Companies, Bermuda