Incorporation Hub

Incorporation in Bermuda

A leading insurance/reinsurance and digital-asset centre using the exempted company under the Companies Act 1981: tax-neutral 0% for most companies, with a new 15% CIT from 2025 for in-scope MNE groups, and the DABA licensing framework for digital assets.

Minimum capital

None (commonly US$12,000 authorised)

Timeline

~2–4 weeks (BMA consent + Registrar)

Corporate tax

0% for most; 15% for MNE groups (€750m+) from 2025

Annual audit

Yes, unless waived by all shareholders

Bermuda is a British Overseas Territory and leading insurance/reinsurance and digital-asset centre, with companies formed by the Registrar of Companies (with Bermuda Monetary Authority consent) under the Companies Act 1981. It is distinctive for the Digital Asset Business Act 2018 ("DABA") and a long-standing tax-neutral environment.

Most founders use the exempted company (limited by shares) under the Companies Act 1981, designed for business carried on outside Bermuda. Alternatives include the Bermuda LLC and a branch (permit company).

There is no minimum capital (commonly US$12,000 authorised), at least one director is required, and the company must keep a Bermuda registered office plus a resident representative (or a Bermuda-resident director/secretary). Incorporation requires BMA consent and Registrar registration, usually within two to four weeks. Digital-asset businesses are licensed by the BMA under DABA.

Bermuda imposes no corporate income tax on most companies (no capital gains, withholding, or VAT/GST), but from 1 January 2025 a 15% corporate income tax applies to Bermuda entities in multinational groups with €750 million+ revenue under the Corporate Income Tax Act 2023 (Pillar Two); Tax Assurance Certificates protect other companies until 2035. Payroll tax and customs duties apply, and beneficial ownership is held in a central register (moving to the Registrar).

Sources used: the Companies Act 1981 and Corporate Income Tax Act 2023; Bermuda Monetary Authority and Registrar of Companies guidance; the Digital Asset Business Act 2018; and Office of the Tax Commissioner guidance.

Practical requirements

  • Companies on the Register under the Companies Act 1981, with BMA consent.
  • Covers the exempted company, Bermuda LLC, and branches.
  • Digital-asset activity is licensed by the BMA under DABA.

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