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Why consider Company Formation in Bermuda?
While researching for company formation overseas, Bermuda is one such country to consider. Bermuda is the most sought-after place for company registration for many reasons. The tax benefits it offers, along with well-developed infrastructure and proximity to the US, are the reasons to consider. Company formation in Bermuda is fast and simple. Additionally, it is affordable for business setup. An annual government fee and a registered agent fee are all that you need to pay. Bermuda’s Business Development Agency (BDA) promotes foreign and overseas investment. Bermuda is recognized as a world-class commercial centre with a stable political and economic environment and a skilled labour force.
Company Formation in Bermuda & Types of Business Entity
The following types of business entities are there in Bermuda
Local Company
Local Company formation is done by the company, individual, or trust that belongs to Bermuda under the Bermuda Companies Act 1981. The sixty per cent shares of such companies must be owned by the Bermudians.
Exempt Company
These companies are completely exempted from the profit from tax payments. It can be formed by one or more persons. These companies must hold an annual general meeting at least once a year. These companies can carry on their business in Bermuda after they are granted a license by the Minister of Finance.
Limited Liability Company
This model is preferred for small and medium-sized businesses. It may be formed by one or more persons who only contribute their shares to the company but are not responsible for the company's business activities.
Permit Company
It is the most suitable business entity for overseas companies that can conduct their business activities after obtaining a permit from the Minister of Finance. These companies can carry their business outside Bermuda. However, a representative must be appointed in such cases.
Mutual Funds Company
This company is limited by shares and is formed to invest its member's funds for their mutual profits.
General Partnership
In this type of company, the business operations are done jointly by 2 or more persons
Limited Partnership
This company is formed by one or more persons. The General partners are liable jointly and severally and are responsible for the management of the company. The Limited Partners, on the other hand, are not liable for any debts incurred.
Trust
It is most suitable for asset management. Trusts are eligible to conduct trading activities.
Our Services Packages for Company Formation in Bermuda
Our service package includes everything that you require for your company formation in Bermuda
- Company Registration services with the Bermuda Monetary Authority
- Local Company Secretary services
- Corporate Bank Account opening services
- Obtaining Licenses and permits
- Suggesting company names for your business setup in Bermuda
- Annual filing services
Steps for Company Formation in Bermuda
We advise you to go through the following guide to understand the company formation in the Bermuda process. The process is quite simple and straightforward
Choosing an appropriate business structure
You must choose an appropriate business structure out of the given structures for a swift and faster company formation in Bermuda.
Pre Registration necessary papers
Our team will provide you with a local registered office and a company secretary for your company formation in Bermuda.
- Names of directors
- Company’s Resolution
- Proof of Identification
Company name Reservation
We will check for the availability of your chosen business name for your business setup in Bermuda.
Submitting the necessary papers
We shall help you draft the relevant necessary papers like the memorandum and articles of association. This Company incorporation in Bermuda can be carried out remotely, and you are not required to travel to Bermuda for the same.
Opening a Corporate Bank Account
Our team will help you in opening a corporate bank account with a reputed bank post-Company incorporation in Bermuda.
Accounting Requirements
Enterslice will provide you with the necessary accounting services so that you can stay compliant with regulatory obligations. We will prepare your financial statements and file your corporate tax returns along with the bookkeeping.
Licenses and Permits
We will help you to obtain permits and licenses for your company formation in Bermuda.
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Download PDFRequirement for Company Formation in Bermuda
General requirements for company formation in Bermuda have been mentioned below
- At least 1 director of any nationality
- At least 1 shareholder of any nationality
- A Resident Representative
- Registered address of local office
- No minimum capital requirement
- Notarized copies of the passports of the directors and shareholders
- Resident Company Secretary
necessary papers needed for Company Formation in Bermuda
The following necessary papers have to be submitted to the Bermuda Monetary Authority for Company incorporation in Bermuda
- Proposed company name
- Registered office address
- Shareholders of company
- Description of business activities of the business setup in Bermuda
- Personal declaration signed by the shareholders of the company
- Company Incorporation deed copy
After the Company Formation in Bermuda
After the successful company formation in Bermuda, you will receive the following necessary papers
- Certificate of incorporation
- Memorandum of Association
- Articles of Association
- Register of shareholders
- Register of Directors
Tax Obligations for Company Formation in Bermuda
There are no taxes on profits, capital gains tax, or withholding tax for business setup in Bermuda. All the companies in Bermuda must maintain books at their registered office in Bermuda and must present annual accounts before shareholders. There is no need to publicly file accounts under the Bermuda law.
The Bermuda government has recently released a proposal to levy a 15% corporate income tax. This shall be effective for tax years beginning on or after 1st January 2025.
Company Formation in Bermuda by Foreigner
A foreigner can engage in business setup in Bermuda if Bermuda company regulations do not allow 100% ownership of the business.
Benefits of Company Formation in Bermuda
If you are wondering why should you engage in company formation in Bermuda, then we have a list of reasons for you
- Total exemption from capital gains and real estate tax
- 100% foreign ownership
- Total exemption from Income Tax and tax on dividends
- Personal information of directors, and shareholders not part of public records
- No need to maintain annual records
- Political and economic stability
- Double Tax agreements with 50+ countries
Disadvantages of Company Formation in Bermuda
- Complex procedure of Company incorporation in Bermuda
- High custom duty imposed by the government of Bermuda on imported goods
- Difficulty in obtaining work permits for foreign workers
- High cost of living
- Limited land space for business setup in Bermuda
Benefits of Opening a Corporate Bank Account in Bermuda
There are many reasons why foreign investors are attracted to opening a corporate bank account in Bermuda
- reliable banking services
- International clients
- Strong reputation of the bank
- Remote Account opening possible
- Access to main currencies
Mistakes to avoid during Company Formation in Bermuda
Some mistakes have to be avoided during your company formation in Bermuda which have been listed below
Inaccurate details of particulars of directors and shareholder
The details of the directors and shareholders must be accurate to avoid the rejection of your application for business setup in Bermuda.
Choosing the wrong business model
It is important to choose the right business entity for business setup in Bermuda. Therefore, we at Enterslice will conduct thorough research on Company incorporation in Bermuda before making a decision.
Improper necessary paperation
Accurate Paper works is sine qua non to avoid rejection of your company formation in Bermuda.
Improper drafting of MoA and AoA
It is important to draft your MoA and AoA accurately.
Bookkeeping
Bookkeeping services are essential as they ensure timely financial statement filing.
Why are Registered Agent services needed for company formation in Bermuda?
- For determining the appropriate business model for your company
- For determining the names for your proposed company
- For staying compliant with all the latest rules and regulations
- Complying with annual bookkeeping.
- Performing due diligence to determine the accuracy of your necessary papers
- Open up a corporate bank account for your new business setup in Bermuda
- Getting the appropriate licenses and permits for your business setup in Bermuda.
Why should you choose Enterslice for company formation in Bermuda?
- 50+ Queries for Company Formation in Bermuda Daily
- Company incorporation in Bermuda with 10,000+ Entrepreneurs across the Globe
- 24/7 with AI-powered Chatbot
- Customized plans for company formation in Bermuda
- 100+ successful Company incorporation in Bermuda
