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Bermuda Offshore Company Formation

The offshore tax haven of Bermuda has long established itself as a top offshore jurisdiction. Bermuda specializes in the formation of offshore companies, formation of offshore trusts, offshore banking and a whole range of other offshore services. The country enjoys economical stability unsurpassed by many of the world’s more developed countries. offshore company formation has been going on in the tax haven of Bermuda since 1981making the jurisdiction one of the leaders in offshore in the Caribbean.

The formation of an offshore or exempt company in Bermuda can be completed in two (2) to three (3) weeks. Offshore corporation creation, same as Seychelles companies formation, in the tax haven of Bermuda is an easy process which can be completed online or via the telephone. The offshore client base of Bermuda has seen a steady increase over the years since the jurisdiction began completing offshore company formation via the internet or simply by using other method of telecommunications which are readily available in the offshore jurisdiction.

For offshore company formation in the offshore jurisdiction of Bermuda the services of a registered agent is a must. The legislation which regulates offshore company formation in Bermuda stipulates that the services of an agent who is authorized and registered with the government must be employed. For the formation of an offshore company in the jurisdiction an advertisement must be circulated in the local newspapers making the intentions of offshore incorporation be known. Incorporation of an Exempt company in Bermuda according to legislation requires filling out and submitting to the Bermuda Monetary Authority (BMA) a complete Memorandum of Association. The information to be included in when submitting documents to the Bermuda Monetary Authority (BMA) are:

  • The name of the exempted company
  • The purpose for which the company is being formed
  • State that the company is going to be an exempt company
  • The number of years the company is expected to last for can also be stated
  • The authorized share capital of the company
  • The number of shares and classes of shares which will be issued
  • The rights, restrictions, powers and privileges of each class of share issued
  • The name and address of the registered agent
  • The registered address of the company
  • The by-laws of the company

The name for an exempt company in Bermuda can be in any language. Company names which are not written in English must be submitted with a translated copy in English. For offshore incorporation in Bermuda the company name cannot be one which has already been chosen by a company that is already incorporated. The names chosen for offshore companies in the tax haven of Bermuda cannot show any association with the government, political parties, and the royal family. Exempt company names which the Registrar of companies regard as offensive will not be incorporated. For offshore company incorporation in Bermuda companies which require that the following words be used as part of the company’s name must first obtain a special license from the Registrar General: Bank, Assurance, Insurance, Loans, Savings, Chamber of Commerce, Building Society, Fiduciary, Investment Management, Trust and Reinsurance. Offshore companies must show that they are limit liability companies by adding the phrase Limited Liability of its abbreviation at the end of the company’s name.

For the process of offshore companies’ registration two (2) or more directors must be appointed by the exempt companies. The directors for an exempt company in Bermuda can be residents or foreigners but must be natural persons. The directors of a Bermuda exempt company are responsible for the appointment of a company President and Vice President or Chairman and Deputy Chairman. Only one (1) shareholder is needed for offshore company formation in tax haven Bermuda. When forming an offshore company in Bermuda a Secretary for the company must be appointed. The Company Secretary must be resident in the offshore jurisdiction.

An offshore company formed and incorporated in the jurisdiction of Bermuda is not permitted by company regulations to trade or any type of business in the territory. Bermuda offshore companies are not allowed to own real estate property in Bermuda however an exempt company can lease property for use as an office in the country. A Bermuda Exempt company can only conduct the business operation that is was licensed to undertake and may not conduct banking business, insurance, act as investment companies is a license is not granted.

Once all the documents have been sent to the Registrar General and he or she is satisfied with them a Certificate of Incorporation will be granted to the Bermuda offshore company. Once incorporated the Bermuda offshore companies has all the powers of to act as a natural person. Offshore companies incorporated in the tax haven are free to operate offshore bank accounts and can do business anywhere in the world.

Once incorporated a Bermuda exempt company will benefit from zero taxation since the offshore jurisdiction is also a tax haven. The exempt company will operate free of the following taxes in tax haven Bermuda; income tax, capital gains tax, corporate tax, withholding tax, gift tax or estate tax. A Bermuda offshore company is obligated by law to pay an annual license fee which is based on the assessable assets of the corporation.

The jurisdiction of Bermuda has all the major characteristics of a tax haven. Bermuda provides all offshore clients with asset protection, privacy and legal means to reduce taxes. The offshore tax haven of Bermuda has been around for a very long time and has always prided itself in proving quality offshore services for its client base. Incorporating an offshore company in Bermuda means that a top company will be formed which can be used for doing business anywhere in the world. Offshore formations in the tax haven of Bermuda are very easy to maintain with an annual license fee being paid at the end of each financial year which will ensure that company remains in good standing order. The license fee rates for offshore companies n the offshore jurisdiction of Bermuda is very affordable.