Bermuda: Types of Company
This page was last updated on 2 August 2019.
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). Fees payable from March 2011 to date are given in the following table.
|Assessable Capital (US$)||Fee|
|0 - 12,000||$1,995|
|12,001 - 120,000||$4,070|
|120,001 - 1,200,000||$6,275|
|1,200,001 - 12,000,000||$8,360|
|12,000,001 - 100,000,000||$10,455|
|100,000,001 - 500,000,000||$18,670|
An exempt company may apply to the Minister of Finance for a certificate exempting it from future profit taxation, should there be any, for a period ending not later than the 26th March, 2035.