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Bermuda: Types of Company

Exempt Company

The Companies Act 1981 (as amended) provides exemption from the 60% local ownership requirement to a company which is does not engage in any activity on the island except with other exempt entities. Managing other exempt entities is also permitted, and, for mutual companies, so is the local distribution of their shares. Other activities may be permitted to exempt companies if a licence is granted by the Minister of Finance.

An exempt company must have two individuals resident in Bermuda, either as directors, or one as secretary and one as director, or one as secretary and one as 'permanent representative'.

Exempt companies pay annual fees based on their 'assessable' capital (authorised capital plus share premium account; or for a mutual company its authorised capital - a share premium account is not required).

The following represents the fees payable from March, 2011:

USD12,000
USD1,995
USD12,001 - USD120,000
USD4,070
USD120,001 - USD1,200,000
USD6,275
USD1,200,001 - USD12,000,000
USD8,360
USD12,000,001 - USD100,000,000
USD10,455
USD100,000,001 - USD500,000,000
USD18,670
USD500,000,001 or more
USD31,120

An exempt company may apply to the Minister of Finance for a certificate exempting it from future profits taxation, should there be any, for a period ending not later than the 26th March, 2035.

 

 

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