Why Choose Bermuda for Company Formation?
Bermuda is the offshore jurisdiction operators choose when regulatory credibility matters more than cost. It pairs a zero-rate corporate tax model for most companies with a purpose-built digital-asset licensing regime and a clean FATF record. The standard vehicle, the exempted company, can be formed in 3 to 7 business days and owned entirely by non-residents.[1][3]
A Purpose-Built Digital-Asset Regime
Bermuda was among the first jurisdictions to legislate specifically for digital-asset businesses. The Digital Asset Business Act 2018, supervised by the Bermuda Monetary Authority, sets three licence classes and a separate token-issuance regime.[5][6] Bermuda's Digital Asset Business Act framework carries more institutional weight than the VASP registrations offered by its Caribbean peers, and that difference shows up directly in banking and counterparty conversations. For a licensed business, the registered structure is the asset, not the cost saving.
A Clean FATF Record
Bermuda has never appeared on the FATF grey list. Its Caribbean Financial Action Task Force mutual evaluation rated it compliant or largely compliant on 39 of the 40 FATF Recommendations, the strongest technical-compliance result of any jurisdiction assessed in that round.[13] Unlike the British Virgin Islands, which the FATF added to its grey list in ,[19] a Bermuda entity does not trigger the automatic enhanced due diligence that grey-listing imposes on counterparties worldwide.
A Tax Model With One Narrow Exception
Bermuda levies no corporate income tax, no capital gains tax, no VAT, and no withholding taxes for the vast majority of companies.[9] The single exception arrived in 2025: groups with consolidated revenue above EUR 750 million now pay a 15% corporate income tax under the Corporate Income Tax Act 2023.[8] Unlike the Cayman Islands, which has enacted no domestic top-up tax, Bermuda chose to align with the OECD global minimum tax directly.
Built for Non-Resident Ownership
An exempted company is, by definition, exempt from the 60% Bermudian-ownership rule that binds local companies, so non-residents can own 100% of the shares.[3] Formation is fully remote: there is no requirement to visit Bermuda. The practical requirement is a local registered office and one Bermuda-resident officer or representative, which a licensed corporate service provider supplies.
Entity Types Under Bermuda Law
Bermuda's principal corporate statute is the Companies Act 1981, supplemented by the Limited Liability Company Act 2016 and the Segregated Accounts Companies Act 2000. For internationally owned crypto, fintech, and high-risk businesses, the standard vehicle is the exempted company. The limited liability company and segregated accounts company serve specific structuring needs rather than the general case.[1][3][4]
Definition: Exempted Company
A Bermuda exempted company is a company limited by shares under the Companies Act 1981 that is exempt from the 60% Bermudian-ownership requirement, allowing full non-resident ownership. It has no statutory minimum capital, requires a minimum of one director, permits corporate and alternate directors, and is the eligible vehicle for a Digital Asset Business Act licence from the Bermuda Monetary Authority.
In practice, almost every internationally owned Bermuda company is formed as an exempted company, because it is the vehicle the BMA expects for a digital-asset or financial-services applicant. The limited liability company suits joint ventures and fund structures that want contractual flexibility through an LLC agreement. The segregated accounts company is used where assets and liabilities must be ring-fenced into separate cells, common in insurance and fund platforms.
| Entity | Min. Capital | Directors | Online Registration | Used For |
|---|---|---|---|---|
| Exempted company | None | 1 (corporate permitted) | Yes (BMA approval, then Registrar filing) | Standard vehicle for digital-asset, fintech, financial-services and insurance businesses; the DABA licence vehicle |
| Limited liability company (LLC) | Set by LLC agreement | 1+ member or manager | Yes | Joint ventures, fund structures, contractual flexibility |
| Segregated accounts company (SAC) | Minimal | Per company form | Yes | Ring-fenced cells for insurance and fund platforms |
| Local company | 60% Bermudian-owned | Per Act | Yes | Domestic trading only; not used by non-residents |
Formation Process
A Bermuda exempted company is formed in 3 to 7 business days once the beneficial-owner documentation is complete, because the Bermuda Monetary Authority must approve the ownership before the Registrar of Companies issues the certificate of incorporation.[2][3] Formation is remote. The realistic constraint is assembling certified personal declarations for every beneficial owner holding 10% or more.
What You Need to Prepare
What the BMA's published timeline does not capture is the time to gather a fully certified declaration pack for each 10%-plus beneficial owner. That preparation, not the filing, is what determines whether formation lands in one week or three.
| Document / Item | Details | Notes |
|---|---|---|
| Certified passport copy (each UBO and director) | Notarised or certified by an accepted professional | Validity commonly 3 months |
| Proof of residential address (each UBO and director) | Utility bill or bank statement | Dated within 3 months |
| Personal Declaration (each UBO holding 10%+) | BMA personal declaration form | Waived only where the person is already well known to the BMA or listed on an appointed exchange |
| Company name | Pre-checked with the Registrar | Reservation valid 3 months |
| Memorandum of Association and bye-laws | Objects, share structure, governance | Adopted at the organisational meeting |
| Registered office address | Physical Bermuda address (not a PO box) | Supplied by the corporate service provider |
| Source-of-funds and business plan summary | Especially for licensing-track applicants | The BMA assesses ownership before incorporation |
| Apostille on foreign corporate documents | Where a corporate shareholder is involved | The Hague Apostille Convention applies to Bermuda |
Name Reservation
Reserve the company name with the Registrar of Companies. A reservation holds the name for three months. Names implying regulated activity (bank, insurance, trust) attract additional scrutiny.
BMA Ownership Approval
Submit the proposed ownership and beneficial-owner declarations to the Bermuda Monetary Authority. The BMA vets every 10%-plus owner before incorporation is permitted. This is the step that gates the timeline.
Incorporation
On BMA permission, the Memorandum of Association is registered with the Registrar and the certificate of incorporation is issued. The company gains legal personality on registration.
Organisational Meeting
Adopt bye-laws, appoint the board and registered office, appoint or waive the auditor, and approve the opening of a bank account. Restricted activities require Minister of Finance consent at this stage.
Post-Registration
Begin banking onboarding (the long pole, see Banking below), register for payroll tax if hiring in Bermuda, and start any Digital Asset Business Act licensing application. Forming the company does not authorise regulated activity: that requires a separate BMA licence.
Requirements
Bermuda's formation requirements are middle of the road for an offshore jurisdiction: lighter than a full onshore regime, heavier than a Caribbean register that incorporates without regulator pre-approval. The two make-or-break elements are the up-front beneficial-owner vetting by the BMA and the mandatory local registered office and resident officer.[3]
| Requirement | Standard exempted company | For DABA licensing |
|---|---|---|
| Min. directors | 1 | 1+, fit and proper, BMA-assessed |
| Corporate directors | Permitted | Permitted, subject to BMA assessment |
| Supervisory board | Not required under the Companies Act 1981 | Not required; governance assessed by the BMA |
| Foreign ownership | 100% permitted | 100% permitted |
| Min. share capital | None | Net assets US$10,000 (Class T) to US$100,000 (Class M and F) |
| Registered office | Mandatory, physical Bermuda address | Mandatory, plus head office for Class M and F |
| Resident representative | One of director, secretary, or resident representative ordinarily resident | BMA-approved Bermuda-resident senior representative |
| UBO disclosure | To the BMA and the Registrar's register; threshold 25% | Same, plus fit-and-proper on controllers |
| Nominee shareholders | Permitted; bearer shares prohibited | Permitted; controllers still disclosed |
| Annual declaration | Mandatory, filed each January | Mandatory, plus annual licence fee |
Registered Office and Resident Representative
Every exempted company must keep a physical registered office in Bermuda and have at least one of a director, the secretary, or a resident representative ordinarily resident on the island.[3] This is supplied by a licensed corporate service provider and is an ongoing annual cost, not a one-off. The resident representative is the point of contact for the Registrar and the BMA. For a Class M or Class F digital-asset licensee, this requirement escalates: the BMA expects a Bermuda-resident senior representative and a genuine head office from which the business is directed and managed.
Beneficial Ownership Disclosure
Bermuda maintains a central beneficial-ownership register. Under the Beneficial Ownership Act 2025, in force since , the register moved from the BMA to the Registrar of Companies, the disclosure threshold sits at 25%, and changes must be filed within 14 days.[12] The register is not public: access is limited to competent authorities and obliged entities on application. Registrar enforcement of the filing obligation begins on . Improper disclosure of register data carries penalties of up to US$250,000 and five years' imprisonment on indictment. Bearer shares are prohibited; nominee shareholders are permitted but the underlying controller is still disclosed.
Costs and Pricing
Bermuda is a high-cost offshore jurisdiction by design. The minimum annual government fee for an exempted company is US$2,095, roughly two to four times the equivalent fee in the Cayman Islands or the British Virgin Islands, and the government fee scales upward with the company's assessable capital.[7][17] The real cost driver, though, is professional fees, not the government fee.
The common mistake is budgeting against the headline US$2,095 government fee. That figure is a fraction of the real cost. The Bermuda government also levies a 7% corporate services tax on the revenue a service provider earns from exempted companies, which raises the effective invoice the client sees.[9] Build the budget from the all-in figure below, not the registry line.
Government Fees
| Fee Item | Amount (USD) | Notes |
|---|---|---|
| Annual government fee, assessable capital US$0 to US$12,000 | 2,095 | Minimum band; due each January[7] |
| Annual government fee, US$12,001 to US$120,000 | 4,275 | Scales by assessable capital |
| Annual government fee, US$120,001 to US$1,200,000 | 6,590 | Mid band |
| Annual government fee, US$1,200,001 to US$12,000,000 | 8,780 | Higher band |
| Exempted LLC annual fee | 900 | Flat |
| Segregated accounts company | 295 per account, capped 1,180 | Plus US$295 initial registration |
| Late filing penalty | 300 | On the annual declaration[17] |
Total Cost Summary
| Cost Item | All-in cost (USD) |
|---|---|
| Government fee (minimum band) | 2,095 |
| Incorporation and corporate service provider | 3,000 to 6,000 |
| Registered office and resident representative (annual) | 2,000 to 4,000 |
| Economic substance and compliance support | 900 to 3,500 |
| Accounting and audit (or audit waiver admin) | up to 4,400 |
| Total Year 1 | ~8,000 to 20,000 |
| Annual ongoing (Year 2+) | ~6,000 to 15,000 |
Figures are date-stamped as of . Banking and any DABA licensing are additional and are covered in their own sections.
Taxation
Bermuda operates a no-corporate-income-tax model for the vast majority of companies, funded instead by payroll tax, customs duty, and government fees. The one exception, in force since , is a 15% corporate income tax on Bermuda entities in multinational groups with consolidated revenue above EUR 750 million, under the Corporate Income Tax Act 2023.[8][9] There is no VAT, no capital gains tax, and no withholding tax.[21]
The 15% headline is real but narrow. The real constraint for a typical applicant is payroll tax on any Bermuda-based staff, not corporate tax.
| Tax Type | Rate | Notes |
|---|---|---|
| Corporate income tax | 0% standard; 15% for groups above EUR 750m | 15% rate effective for fiscal years beginning on or after |
| VAT / GST | None | Bermuda has no value-added or goods-and-services tax |
| VAT on crypto services | Not applicable | No VAT regime exists |
| Withholding tax on dividends | 0% | No withholding taxes |
| Withholding tax on interest | 0% | No withholding taxes |
| Withholding tax on royalties | 0% | No withholding taxes |
| Social insurance | BMD 75.30 per employee per week (total) | Split employer and employee; as of 2025 |
| Payroll tax (employer) | Up to 10.25%; 9.75% from | 9.75% for international-business employers; capped on the first US$1m of remuneration per employee[10] |
Tax Assurance Certificate
A Bermuda exempted company can apply for an assurance certificate under the Exempted Undertakings Tax Protection Act 1966. The certificate provides that if Bermuda later enacts any tax on income, profits, capital gains, or estates, that tax will not apply to the company until at least .[16] The assurance does not exempt an in-scope multinational group from the 2025 corporate income tax: the certificate predates and does not override the Corporate Income Tax Act 2023. Treat it as protection against future general taxes, not as a shield against the global minimum tax.
CRS and CARF Reporting
Bermuda is a participating jurisdiction under the OECD Common Reporting Standard (CRS) and has committed to the Crypto-Asset Reporting Framework (CARF). Data collection under CARF begins on , with first exchanges of crypto-asset information in 2027.[14] For a crypto business, this means client and transaction data becomes reportable to tax authorities in participating jurisdictions from the 2026 reporting period. Build CARF data capture into systems now rather than retrofitting it.
Pillar Two and the 2025 Corporate Income Tax
Bermuda has not paired the Corporate Income Tax Act 2023 with an income inclusion rule or an undertaxed profits rule. A group approaching the EUR 750 million threshold should model its exposure before incorporating, because the 15% rate changes the after-tax economics that make Bermuda attractive.
Banking
Banking is the hard part. Bermuda has only four full banking licences in issue, and local deposit-takers have shown little appetite for newly incorporated, non-resident-owned crypto and fintech companies, citing correspondent-banking and de-risking pressure.[15] An FATF-clean record helps, but it does not by itself open a local account for an unlicensed crypto business.
In practice, an unlicensed Bermuda crypto company banks through alternatives rather than a local high-street account. The common stack is a payment account from an electronic money institution authorised in a European jurisdiction such as Lithuania, which issues a named account and IBAN to an offshore-incorporated entity but offers no deposit-protection scheme. A specialist crypto-friendly banking partner in a third jurisdiction that onboards regulated digital-asset businesses is the other route, and it usually requires the BMA licence first.
Bank documentation runs deep: certificate of incorporation, Memorandum and bye-laws, registers of directors and members, registered-office proof, certified beneficial-owner identity and address for every 25%-plus holder, and source-of-funds evidence. Realistic onboarding runs from several weeks to several months.
Jagelski & Partners' banking partner network includes 90+ institutions across multiple jurisdictions, and pre-qualifies a Bermuda company against the institutions most likely to onboard its profile before any application is filed. For a formation client, banking is the critical next step after incorporation, not an afterthought. See the banking service for how onboarding is sequenced.
Annual Compliance
Every Bermuda exempted company carries ongoing obligations regardless of activity, and non-compliance leads to penalties and, ultimately, strike-off from the register.[2][7] The core annual events are the January government declaration, beneficial-ownership maintenance, payroll-tax filings for any Bermuda staff, and the economic substance declaration.
Annual Declaration and Government Fee
Each exempted company files a statutory declaration of its principal business and assessable capital with the Registrar in January, accompanied by the annual government fee.[7] The filing is mandatory even for a dormant company. The late penalty is US$300. An exempted company does not file its financial statements with the Registrar, but it must keep accounting records.
Accounting and Audit
A Bermuda exempted company must appoint an auditor, but the requirement can be waived if all shareholders and all directors agree.[3] Records can be kept anywhere in the world. For a licensed digital-asset business the BMA imposes its own reporting, which is heavier than the general corporate position and sits outside the scope of this formation guide.
Beneficial Ownership Updates
Changes to beneficial ownership must be filed with the Registrar's register within 14 days under the Beneficial Ownership Act 2025.[12] Registrar enforcement of the filing obligation begins on . The prior requirement for prior approval before a person could become a beneficial owner was repealed in 2025, which simplifies onboarding of new investors.
Tax Filing
There is no corporate income tax return for a standalone company outside the EUR 750 million group threshold. Payroll tax is filed quarterly within 15 days of each quarter-end for companies with Bermuda staff, electronically where the payroll is US$200,000 or more.[10] In-scope multinational groups file a corporate income tax return through their Bermuda constituent entity.
Penalties and Strike-Off
The Registrar strikes off companies that fail to meet filing and fee obligations under section 261(5) of the Companies Act 1981, with notice published in the Official Gazette, after which a struck company stands dissolved.[2] Reinstatement is possible but costly and slow. Directors should treat the January declaration and the economic substance deadline as hard dates, because the path from non-filing to strike-off is administrative and unforgiving.
Economic Substance
Bermuda's Economic Substance Act 2018 and Economic Substance Regulations 2018, effective and enforced by the Registrar of Companies, require entities carrying on a relevant activity to demonstrate genuine substance in Bermuda.[11] Most companies must file an annual economic substance declaration even when they carry on no relevant activity at all.
Relevant Activities
The regime applies to nine relevant activities: banking, insurance, fund management, financing and leasing, headquarters, shipping, distribution and service centre, intellectual property, and holding-entity business.[11] Investment fund business is expressly outside the regime. Whether a digital-asset business is caught depends on the underlying activity: a crypto-financing or fund-management model can be a relevant activity, whereas pure proprietary trading sits outside the listed categories unless it falls within an existing head.
The Substance Test
A company carrying on a relevant activity must be directed and managed in Bermuda, conduct its core income-generating activities in Bermuda, and have adequate employees, expenditure, and physical premises on the island.[11] Core income-generating activities can be outsourced, but only to a provider that performs them in Bermuda. A pure-equity holding company faces a reduced test: it need only comply with its filing obligations and maintain adequate premises and people for passive holding.
Reporting Deadlines and Penalties
The economic substance declaration is filed with the Registrar within six months of the financial year-end.[11] Penalties escalate across successive notices, from US$7,500 to US$50,000 for a first failure, up to US$250,000 for repeated non-compliance, and can end in a court order restricting the business or strike-off. High-risk intellectual-property business is presumed non-compliant unless the company rebuts the presumption with detailed evidence.
Exemptions
An entity that is tax-resident outside Bermuda is exempt, provided it files evidence of foreign tax residency within six months of its financial year-end.[11] Banking and insurance licensees are generally treated as meeting the substance test through their regulated operations but still file a declaration. Local Bermudian-owned companies trading only domestically are outside the regime.
Licensing Pathways from a Bermuda Company
Forming the exempted company is the first step; the structure should be designed around the licensing target, because capital, governance, and substance requirements differ by licence. For digital-asset businesses, the relevant authorisation is a Digital Asset Business Act licence from the Bermuda Monetary Authority, with a separate regime for token issuance.[5][6]
Digital Asset Business Licence (DABA)
Class T test, Class M modified, and Class F full licence under the Digital Asset Business Act, supervised by the Bermuda Monetary Authority. See the net-asset minimums and custody fee floor set out earlier in this guide.
Banking for Bermuda Companies
A tiny local banking market makes onboarding hard. Pre-qualified routes across 90+ institutions, sequenced around the DABA licence so applications go out only where they are likely to land.
Within the section, a separate Digital Asset Issuance authorisation under the Digital Asset Issuance Act 2020 applies to businesses raising capital through token offerings, distinct from the DABA service licence.[20] A Bermuda licence is respected globally but is jurisdictionally bounded.
A Bermuda entity confers no EU passporting rights, and MiCA contains no third-country equivalence regime for digital-asset firms. MiCA Article 61 permits a third-country firm to serve EU clients only when the client initiates the contact entirely on its own initiative. ESMA's guidelines, published and applicable from , read this restrictively: any EU-targeted marketing, EU-language content, geo-targeted advertising, or use of EU-based influencers counts as solicitation and voids the exemption. For full detail on what constitutes solicitation, see Reverse Solicitation Under MiCA →
Advantages and Limitations
Bermuda rewards businesses that need credibility and can absorb cost, and penalises those optimising purely for low annual fees. The advantages cluster around reputation, regulation, and tax; the limitations around cost, banking, and the absence of EU market access. Every limitation below carries a mitigation.
- Clean FATF record. Never grey-listed; the strongest CFATF technical-compliance result in its evaluation round, which eases counterparty due diligence.
- Purpose-built digital-asset regime. The Digital Asset Business Act gives licensees a recognised regulatory status that Caribbean VASP registrations do not match.
- No corporate tax for most companies. Zero corporate income tax, VAT, capital gains, and withholding tax outside the EUR 750 million group threshold.
- 100% non-resident ownership. The exempted company is exempt from the 60% Bermudian-ownership rule, with fully remote formation.
- Institutional credibility. Bermuda is a top-three global insurance and reinsurance market and the world's largest captive domicile, which signals regulatory maturity to banks and partners.
- High cost relative to peers. Mitigation: choose Bermuda only where the licensing or reputational benefit justifies the premium; use a BVI or Bahamas structure for pure holding needs.
- Difficult banking. Mitigation: secure the DABA licence first and pre-qualify against suitable banking partners before applying, rather than relying on a local high-street account.
- No EU passporting. Mitigation: operators targeting EU clients can obtain a separate CASP authorisation in an EU member state for full passporting, or, for isolated genuinely unsolicited contacts only, may fall within the narrow reverse solicitation exemption under MiCA Article 61.
- Economic substance obligations. Mitigation: run the substance analysis against the business model before incorporating, and use the reduced test where the entity is pure-equity holding.
- 2025 corporate income tax for large groups. Mitigation: model Pillar Two exposure before incorporating; the rate is irrelevant to standalone operators below the EUR 750 million threshold.
How Bermuda Compares
Among premium offshore jurisdictions, Bermuda is the credibility option, the Cayman Islands the funds option, the British Virgin Islands the low-cost holding option, and the Bahamas the cost-sensitive crypto option under its DARE Act. The table below positions Bermuda against the three jurisdictions a founder most often weighs against it.
| Factor | Bermuda | Cayman Islands | BVI | Bahamas |
|---|---|---|---|---|
| Entity Type | Exempted company | Exempted company | BVI Business Company | International Business Company |
| Timeline | 3 to 7 business days | 1 to 7 business days | 1 to 5 business days | 1 to 3 business days |
| State Fee | From US$2,095 (scales by capital) | From ~US$840 | From ~US$550 | ~US$350 (annual) |
| Min. Capital | None | None | None | None |
| Corporate Tax | 0%; 15% for groups above EUR 750m (2025) | 0% | 0% | 0%; 15% top-up for groups above EUR 750m (2025) |
| EU Passporting | None | None | None | None |
| FATF Status | Clear (never listed) | Clear (off list Oct 2023) | Grey-listed (Jun 2025) | Clear (off list Dec 2020) |
| Remote Management | Yes | Yes | Yes | Yes |
| Crypto Banking | Difficult (DABA licence unlocks local onboarding) | Difficult | Difficult (harder since grey-listing) | Difficult |
| Best For | Digital-asset and insurance businesses where institutional credibility outweighs cost | Investment funds | Low-cost holding structures | DARE Act crypto, cost-sensitive setups |
Compare every formation jurisdiction side by side →
The key difference is: regulatory weight against cost. Bermuda and Cayman are the premium pair, but they specialise differently: Cayman for funds, Bermuda for digital-asset and insurance licensing. The British Virgin Islands undercuts both on price and speed, but its June 2025 FATF grey-listing[19] now triggers enhanced due diligence at every banking and counterparty touchpoint, where the Cayman Islands, off the grey list since 2023,[18] carries no such friction.
The Bahamas is the closest cost-sensitive analogue with its own crypto framework, but it lacks Bermuda's insurance pedigree and the institutional recognition that the Digital Asset Business Act carries. For a business whose value rests on a credible licence, that recognition is the deciding factor.
When Bermuda Is the Right Choice
Choose Bermuda if you need a digital-asset or fintech licence with international standing, if banking and counterparty credibility outweigh annual cost, if you operate in insurance or reinsurance, or if a clean FATF record is decision-critical. Consider alternatives if you only need a low-cost holding vehicle (the BVI or Bahamas), if your priority is a funds platform (the Cayman Islands), or if you need EU market access (an EU member-state CASP authorisation, not any offshore structure).
Not sure which column is you? Ask Emma. She compares these jurisdictions in seconds, in your language.
Frequently Asked Questions
A Bermuda exempted company is typically formed in 3 to 7 business days once the beneficial-owner documentation is complete. Name reservation is confirmed in about 24 hours. The step that controls the timeline is the Bermuda Monetary Authority’s approval of the ownership, which it must give before the Registrar of Companies issues the certificate of incorporation. Assembling certified personal declarations for every beneficial owner holding 10% or more is the practical bottleneck, so the difference between a one-week and a three-week formation is usually document readiness, not processing speed.
Yes. The exempted company is, by definition, exempt from the 60% Bermudian-ownership rule that applies to local companies, so non-residents can own all of the shares. Formation is fully remote, with no requirement to visit Bermuda. The only local-presence requirements are a physical registered office on the island and one officer or representative ordinarily resident in Bermuda, both of which a licensed corporate service provider supplies. Directors and shareholders themselves need not be resident.
The exempted company under the Companies Act 1981 is the standard vehicle for crypto, fintech, and high-risk businesses, and it is the entity the Bermuda Monetary Authority expects for a Digital Asset Business Act licence. The limited liability company suits joint ventures and fund structures wanting contractual flexibility, and the segregated accounts company is used where assets must be ring-fenced into separate cells. For almost every internationally owned licensing-track business, the exempted company is the correct choice.
The minimum annual government fee for an exempted company is US$2,095, and it scales upward with assessable capital. The government fee is only part of the picture: a realistic all-in Year 1 cost is US$8,000 to US$20,000, with US$6,000 to US$15,000 a year thereafter, once the corporate service provider, registered office, resident representative, and substance support are included. Bermuda also levies a 7% corporate services tax on provider revenue, which raises the effective invoice. A DABA-licensed entity costs materially more.
For most companies, no. Bermuda levies no corporate income tax, no VAT, no capital gains tax, and no withholding taxes. Since 1 January 2025, however, a 15% corporate income tax applies to Bermuda entities in multinational groups with consolidated revenue above EUR 750 million, under the Corporate Income Tax Act 2023. This is Bermuda’s response to the OECD global minimum tax. Standalone companies and groups below the EUR 750 million threshold remain outside the corporate income tax entirely.
No. Bermuda has no value-added tax or goods-and-services tax of any kind, so the question of VAT on crypto services does not arise. The main operating tax a Bermuda company encounters is payroll tax, which applies only to remuneration paid to staff working in Bermuda, at an employer rate of up to 10.25% (reducing to 9.75% for international-business employers from 1 April 2026), capped on the first US$1 million of remuneration per employee. A company with no Bermuda-based staff pays no payroll tax.
It is difficult but not impossible. Bermuda has only four full banking licences, and local banks have limited appetite for newly incorporated, non-resident-owned crypto companies. In practice, an unlicensed crypto company banks through alternatives such as an electronic money institution authorised in a European jurisdiction, while a Digital Asset Business Act licence is usually what unlocks credible local and counterparty banking. Securing the licence before approaching banks, and pre-qualifying against suitable institutions, is the route that works.
Not specifically a local director, but the company must have at least one of a director, the secretary, or a resident representative ordinarily resident in Bermuda, alongside a physical registered office on the island. A licensed corporate service provider supplies this resident-presence requirement. A digital-asset licensee faces a higher bar: the Bermuda Monetary Authority expects a Bermuda-resident senior representative and a genuine head office from which a Class M or Class F business is directed and managed.
Yes. The Hague Apostille Convention applies to Bermuda, which was extended the Convention through the United Kingdom. Public documents issued in another contracting state need only an apostille rather than full consular legalisation to be accepted in Bermuda, and Bermuda documents are apostilled for use abroad. Certified copies of identity and address documents are commonly required to be dated within three months, so check validity windows before submitting a formation pack.
A Bermuda company does not grant EU market access or passporting rights, and MiCA contains no third-country equivalence regime. MiCA Article 61 permits a third-country firm to serve EU clients only when the client initiates contact entirely on its own initiative, and ESMA interprets this very narrowly: any EU-targeted marketing, EU-language content, or geo-targeted advertising voids the exemption. Operators seeking systematic EU market access should obtain a separate CASP authorisation in an EU member state. See the reverse solicitation resource for detail on what counts as solicitation.
A Digital Asset Business Act licence is the Bermuda Monetary Authority authorisation to carry on digital-asset business such as exchange operation, custody, or payment services. There are three classes: Class T (test), Class M (modified), and Class F (full). Minimum net assets are US$10,000 for Class T and US$100,000 for Class M and F. Annual fees for Class M and F are activity-based, with a higher floor for custody of client assets. Carrying on digital-asset business without a licence is an offence.
No. Incorporating an exempted company gives the company legal personality and the ability to contract, but it does not authorise any regulated activity. Digital-asset business requires a separate Digital Asset Business Act licence from the Bermuda Monetary Authority, and token issuance for capital-raising requires a Digital Asset Issuance authorisation. Formation should be designed around the intended licence from the outset, because capital, governance, and substance requirements differ by licence class.
Every exempted company files an annual statutory declaration and government fee with the Registrar each January, even if dormant. It must keep its beneficial-ownership register current within 14 days of any change, file an economic substance declaration within six months of its financial year-end, and file payroll tax quarterly if it employs staff in Bermuda. An auditor must be appointed unless all shareholders and directors agree to waive the requirement. Missing these obligations leads to escalating penalties and eventual strike-off.
It depends on the activity. The Economic Substance Act 2018 applies to nine relevant activities, including banking, insurance, fund management, financing and leasing, and holding-entity business. Investment fund business is outside the regime. A digital-asset business is caught only where its model maps to a relevant activity, such as crypto financing or fund management. Every company must file an economic substance declaration even when it carries on no relevant activity, so the analysis should be run against the specific business model before incorporating.
Nominee shareholders are permitted, but the underlying beneficial owner is still disclosed to the Registrar’s beneficial-ownership register at the 25% threshold. Bearer shares are prohibited. The register is not public, with access limited to competent authorities and obliged entities on application, but nominee arrangements do not conceal ownership from the regulator. Changes in beneficial ownership must be filed within 14 days, and Registrar enforcement of the filing obligation begins on 1 June 2026.
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References
Show all references
- Government of Bermuda, Companies Act 1981, gov.bm, accessed .
- Government of Bermuda, Registrar of Companies, gov.bm, accessed .
- Conyers, Bermuda Exempted Companies, conyers.com, accessed .
- Government of Bermuda, Limited Liability Company Act 2016, gov.bm, accessed .
- Bermuda Monetary Authority, Digital Asset Business Act 2018, bma.bm, accessed .
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