I
Bermuda

Bermuda

Company Formation in Bermuda

Bermuda

Formation Time
2–4 weeks
Min. Capital
BMD 12,000 (Exempt Company)
Corporate Tax
0%
Foreign Ownership
100%

Overview

Bermuda is the world's largest and most sophisticated insurance and reinsurance market, hosting the global or regional headquarters of companies such as Hiscox, RenaissanceRe, Arch Capital, and Everest Re. The island is also a leading centre for Insurance-Linked Securities (ILS) and catastrophe bonds, managing over USD 100 billion in dedicated ILS capital. Beyond insurance, Bermuda has positioned itself as a fintech-forward jurisdiction through the landmark Digital Asset Business Act 2018 (DABA), creating one of the world's first comprehensive regulatory frameworks for digital asset exchanges, ICOs, and virtual asset service providers. Bermuda levies zero direct taxation — no corporate tax, no income tax, no capital gains tax, no withholding tax, and no VAT. The Bermuda Monetary Authority (BMA) is a highly respected regulator, and the jurisdiction maintains full compliance with FATF standards, CRS, and FATCA. The Exempt Company is the primary vehicle for international business, and Bermuda's Companies Act provides a well-established, English common law governance framework. With its close proximity to the US East Coast (2 hours from New York), Bermuda currency pegged 1:1 to the USD, and a deep professional services ecosystem, Bermuda remains the jurisdiction of choice for insurance, reinsurance, ILS, and increasingly for regulated fintech ventures.

0% tax — all types
World's #1 insurance hub
Digital Asset Business Act
BMA regulated
BMD pegged to USD
2 hrs from New York

Why Choose Bermuda

1

World's #1 insurance and reinsurance domicile

2

0% corporate, income, capital gains, withholding tax, and VAT

3

Digital Asset Business Act 2018 — pioneering fintech regulation

4

Bermuda Monetary Authority (BMA) — globally respected regulator

5

Over USD 100 billion in ILS/catastrophe bond capital

6

BMD pegged 1:1 to USD — zero currency risk

7

2 hours from New York — ideal US East Coast time zone

8

Full FATF, CRS, and FATCA compliance

Business Entity Types

EntityOwnershipDirectorsCapitalTaxBest For
Exempt Company100%1BMD 12,000 minimum authorised capital0% — tax assurance certificate available until 2035Insurance, reinsurance, holding companies, fintech
Exempt Limited Partnership100%N/ANone0%Investment funds, private equity, joint ventures
Segregated Accounts Company (SAC)100%2 (one must be a Bermuda resident for insurance SACs)Varies by insurance class0%Multi-line insurance, ILS platforms, umbrella fund structures

Step-by-Step Formation Process

1

KYC & Due Diligence

2–3 days

Submit full identity, source of funds, and business documentation to Bermuda corporate service provider for AML vetting.

2

Ministerial Consent

1–3 weeks

Application for Ministerial consent from the Bermuda Ministry of Finance (required for all Exempt Companies).

3

Incorporation

1–2 days

File Memorandum of Association with the Registrar of Companies upon receipt of Ministerial consent. Certificate of Incorporation issued.

4

Post-Incorporation & Licensing

1–4 weeks (BMA licence)

Appoint officers, issue shares, open statutory registers. Apply for BMA licence if conducting regulated activities.

5

Bank Account Opening

4–10 weeks

Open corporate bank account with a Bermuda or international bank.

Costs & Fees

Government / License FeeUSD 1,995+
Our Service FeeUSD 6,000+
Annual RenewalUSD 5,000+

Fees are indicative and may vary based on business activity, entity type, and additional approvals required. Contact us for a precise custom quote.

Get Custom Quote

Banking

Bermuda has a well-developed banking sector with three licensed commercial banks. Corporate account opening is possible locally, particularly for insurance and reinsurance companies with substance in Bermuda. For other structures, accounts in the US, UK, or Singapore may be more practical. The BMA's strong regulatory reputation generally supports banking relationships.

Account Opening Time
4–10 weeks
Multi-Currency
Yes — multiple currencies supported

Recommended Banks

Butterfield Bank (Bermuda's largest)HSBC BermudaClarien BankUS banks via introduction (JPMorgan, Goldman Sachs — for insurance)UK banks via introduction

Tax Overview

Corporate Tax
0%
Personal Income Tax
0%
VAT / Sales Tax
0%
Capital Gains Tax
0%
Withholding Tax
0% on dividends, interest, and royalties
Double Tax Treaties
0 countries

Bermuda has no direct taxation. Tax assurance certificates are available guaranteeing no tax until at least 2035. Government revenue comes from payroll tax (on local employees — rates vary by income bracket), customs duties, land tax, and government fees. There are no tax treaties, but Bermuda has signed 40+ Tax Information Exchange Agreements (TIEAs).

Frequently Asked Questions

Why is Bermuda the global hub for insurance and reinsurance?
Bermuda hosts 1,300+ insurance entities writing over USD 200 billion in annual gross premiums. The combination of zero tax, the BMA's Class 1–4 insurance licensing framework, proximity to the US (the world's largest insurance market), a deep pool of insurance professionals, and English common law governance make Bermuda the natural domicile for (re)insurers and ILS sponsors.
What is the Digital Asset Business Act (DABA)?
Enacted in 2018, DABA was one of the world's first comprehensive regulatory frameworks for digital asset businesses. It covers exchanges, custodians, payment service providers, and ICO issuers, requiring BMA licensing. Bermuda has attracted firms like Circle, Bittrex, and Relm Insurance under this framework.
What is Ministerial consent and how long does it take?
All Bermuda Exempt Companies require consent from the Minister of Finance before incorporation. This involves a review of the proposed business activities and beneficial owners. Processing typically takes 1–3 weeks, though it can be expedited for straightforward applications. This requirement is unique to Bermuda among offshore jurisdictions.
Do I need audited financial statements?
Yes. Bermuda Exempt Companies are required to maintain audited financial statements. This is a higher compliance standard than BVI or Seychelles, but it enhances credibility with banks, counterparties, and regulators — particularly important for insurance and fund structures.
Is there payroll tax in Bermuda?
Yes. Bermuda imposes a payroll tax on remuneration paid to employees working in Bermuda. Rates are progressive, with employers paying approximately 10.25% and employees contributing approximately 6%. This only applies if you have Bermuda-based staff — it does not affect companies with no local employees.
Can I get a Bermuda bank account for a non-insurance company?
Yes, though it may be more challenging. Butterfield Bank and Clarien Bank accept applications from non-insurance Exempt Companies, but KYC requirements are thorough. For purely international trading companies, a US or UK bank account obtained via our introduction service may be more practical.