Company registration is the process of formalizing the status of a legal entity in accordance with the laws of a certain country. During this process, the company is officially recognized as a legal entity with its own legal capacity.
To receive this status, it is necessary to provide certain documentation and fulfill the requirements established by the state authorities. Due to registration, the entity is able to conduct commercial activities, conclude contracts, participate in court proceedings and perform other legally significant actions.
If you plan to start a business in the Caribbean region, Bermuda is an excellent choice for registering your company. The Manimama team has conducted in-depth research, analyzed the main subtleties of incorporating in Bermuda, and is ready to share its results and help you choose the right jurisdiction.
What are the main advantages of incorporating a company (business) in Bermuda?
1. Favorable tax regime
One of the key advantages of registering a company in Bermuda is the favorable tax regime. The absence of taxes on income, dividends, capital gains, and inheritance makes this jurisdiction particularly appealing to entrepreneurs. This feature allows businesses to retain a significant portion of their profits, which can be reinvested into business growth or other ventures.
2. Sound legal framework
Bermuda’s legal system is based on English common law, ensuring a high level of regulatory compliance. With transparent and stable legal procedures, entrepreneurs can have confidence in protecting their rights. This factor makes Bermuda an attractive choice for international investors and large corporations.
3. Prestige and global reputation
Bermuda enjoys a reputation as one of the most reliable offshore jurisdictions worldwide. Company registration here is associated with high standards of corporate governance and financial transparency. This prestigious status builds trust with partners and clients, fostering global business growth.
4. Ease and speed of registration
Registering a company in Bermuda is renowned for its simplicity and efficiency. Favorable legislation enables entrepreneurs to establish their businesses quickly and begin operations without delay. Minimal bureaucratic hurdles allow business owners to focus on their strategic goals instead of excessive paperwork.
5. Asset protection and confidentiality
Bermuda offers effective mechanisms for asset protection and confidentiality. Ownership information is not publicly disclosed, ensuring a high level of privacy. This is a significant advantage for entrepreneurs seeking to safeguard their financial interests in a stable environment.
6. Promising location
Bermuda’s central location in the Atlantic Ocean provides convenient access to North American, European, and Caribbean markets. This opens up extensive opportunities for international trade and collaboration. Additionally, the well-developed infrastructure and financial sector support the successful operation of businesses.
How to register a company in Bermuda and what are the main requirements for such registration?
Step 1. Initial setup
- Initiating a preliminary project assessment, assessing risks, choosing the type of company, preparing the necessary documents and obtaining the necessary permits, determining the time frame, budget, and resources required to complete the process.
- Preparation and filing of the package of documents.
Step 2. Pre-registration preparation
Application for non-objection from the Bermuda Monetary Authority (BMA), and preparation of the legal documentation to incorporate the Company
Duration: 1-2 weeks
Step 3. Company registration
- Reservation of the company name in Register of Companies
- Preparation and submission of the application to the BMA and requesting a beneficial ownership permit
- Preparation and submission of the Memorandum of Association to the Registrar of Companies
- Payment of government fees
Duration: 1-2 day
Step 4. Opening a bank account
After company incorporation, we can help open a corporate bank account
Requirements for registering a company in Bermuda on the example of an Exempt Limited Liability Company (ELLC):
- Shareholders: at least one shareholder.
- Director: must be two individuals, ordinarily resident in Bermuda, who serve either: one as secretary and one as resident representative, or one as secretary and one as director, or both as directors of that company.
- Company Secretary: required.
- Minimum Share Capital: no paid up capital requirement. Standard share capital is $12,000.
- Liability: limited to the amount of capital shareholders have invested in the company through their shares.
- Accounting: no.
What do you have to know about taxes when registering a company in Bermuda?
Corporate income tax (CIT):
- Bermuda offers an attractive tax environment with no taxes on profits, income, dividends, or capital gains. Companies can accumulate profits without restrictions and are not required to distribute dividends, making it an ideal jurisdiction for business growth and wealth retention.
- The Government of Bermuda is set to introduce a Corporate Income Tax (CIT) targeting Bermuda-based businesses that are part of Multinational Enterprise Groups (MNEs) with annual revenues of €750 million or more. This proposed CIT is scheduled to be implemented in January 2025, aligning Bermuda with global tax standards and ensuring fair taxation for large-scale enterprises operating within its jurisdiction. The CIT will be determined based on a tax rate of 15% (subject to reductions for foreign tax credits).
Personal income tax (PIT):
Individuals in Bermuda don’t pay PIT. But all companies and self-employed persons are required to pay Payroll Tax in Bermuda.
Value-added tax (VAT):
There is no VAT in Bermuda.
For readers
Manimama provides assistance in choosing the right jurisdiction for company incorporation and in registering a business specifically in Bermuda. We have a good understanding of the tax and legal peculiarities of specific jurisdictions, which helps our clients make an informed choice based on their unique needs and development strategies. In our work, we take into account factors affecting the business environment, such as the level of competition, access to financial and human resources, as well as opportunities for further growth and development in different jurisdictions.
By choosing our company formation service in Bermuda, you are working with a law firm that values integrity, competence, and client satisfaction. Let us help you set up a company in Bermuda and pave the way for your business success!
Our contacts
If you want to become our client or partner, feel free to contact us at support@manimama.eu.
Or use our telegram @ManimamaBot and we will respond to your inquiry.
We also invite you to visit our website: https://manimama.eu/.
Join our Telegram to receive news in a convenient way: Manimama Legal Channel.
Manimama Law Firm provides a gateway for the companies operating as the virtual asset wallet and exchange providers allowing to enter to the markets legally. We are ready to offer an appropriate support in obtaining a license with lower founding and operating costs. We offer KYC/AML launch, support in risk assessment, legal services, legal opinions, advice on general data protection provisions, contracts and all necessary legal and business tools to start business of virtual asset service provider.
The content of this article is intended to provide a general guide to the subject matter, not to be considered as a legal consultation.
