Starting a Business · Bermuda
How to start a business in Bermuda as a foreigner (2026)
Bermuda shaded by its starting a business status
Starting a business in Bermuda as a foreigner: moderate.
FrameworkCompanies Act 1981 (as amended); administered by the Registrar of Companies (ROC) with prior consent from the Bermuda Monetary Authority (BMA). The Beneficial Ownership Act 2025 (effective November 2025) transferred the central beneficial-ownership register from the BMA to the ROC.
Bermuda offers a fast, foreigner-friendly route to incorporation through the 'exempted company', which permits 100% non-Bermudian ownership, has no meaningful minimum capital, and can be formed in roughly 2–4 weeks after BMA/ROC vetting. However, exempted companies are restricted from trading in Bermuda's domestic market — 'local companies' remain subject to the 60/40 rule (60% Bermudian ownership and directorship) unless a ministerial licence is obtained — and any foreign founder wishing to live and work on-island must separately secure a work permit or the Economic Investment Certificate.
Key points
An exempted company may be 100% owned and controlled by non-Bermudians. Local companies must generally satisfy the '60/40 rule' (≥60% Bermudian shareholders and directors) unless licensed under s.114B of the Companies Act 1981.
There is no prescribed minimum share capital; a company need only issue at least one share of any par value. Government fees are payable based on assessed capital tiers.
(1) Reserve the company name with the Registrar of Companies; (2) apply to the BMA/ROC for consent to incorporate with beneficial-ownership declarations and certified ID for any 10%+ owner; (3) file the Memorandum of Association and pay fees to obtain the Certificate of Incorporation; (4) hold statutory first meeting, appoint directors/secretary, and file the register of beneficial owners.
An exempted company must maintain a registered office in Bermuda and either a resident director, a resident secretary, or a resident representative. Directors and shareholders themselves may be non-resident and of any nationality.
Regulatory consent generally takes about 1–2 weeks; the Certificate of Incorporation is normally issued 5–10 business days thereafter, giving a total of roughly 2–4 weeks. Regulated sectors (banking, insurance, funds, trust services) require additional ministerial or BMA licences that extend the timeline.
Incorporating a Bermuda company does not confer immigration status. Foreign founders wishing to reside and work in Bermuda need a work permit, or may qualify for the Economic Investment Certificate (Residential) requiring a qualifying investment of at least BM$2.5m, which brings automatic work-permit approval for the invested business.
Under the Beneficial Ownership Act 2025 (in force from November 2025) the central register of beneficial owners is now maintained by the Registrar of Companies. Any person holding 10% or more of shares/voting rights must be identified with certified ID at incorporation and kept current thereafter.
Timeline - major decisions & events
Consolidates Bermuda's beneficial-ownership framework, moving the central register from the BMA to the Registrar of Companies and extending coverage to all 'legal persons' (companies, LLCs and partnerships). Raises transparency/compliance obligations that founders must meet at and after incorporation.
Bermuda Laws (Government of Bermuda) ↗Bermuda's first corporate income tax becomes effective, applying a 15% rate to entities in multinational groups with €750M+ annual revenue. Small and domestically owned new businesses remain exempt, so the change targets large MNEs rather than ordinary startups.
Bermuda Laws (Government of Bermuda) ↗Governor's assent given to legislation introducing a qualified domestic minimum top-up tax aligned with OECD Pillar Two, ending Bermuda's long-standing no-corporate-tax status for in-scope multinationals. A foundational shift in Bermuda's value proposition to internationally active businesses.
Government of Bermuda ↗In the 2020/21 Budget the Minister of Finance committed to reducing the Bermudian-ownership threshold for local companies from 60% to 40% (while keeping a ≥60% Bermudian board). Eases foreign participation in companies trading in Bermuda's domestic economy.
U.S. Department of State ↗The Council of the EU delisted Bermuda after it addressed economic-substance concerns, restoring its reputation as a cooperative jurisdiction. Critical for the credibility of Bermuda as a base for internationally active companies.
Council of the EU (Consilium) ↗Imposes substance requirements (being managed/directed in Bermuda, adequate local expenditure and core income-generating activity) on entities carrying on 'relevant activities', with annual declarations to the Registrar and penalties up to BD$250,000. A major ongoing compliance obligation for newly formed entities.
Bermuda Laws (Government of Bermuda) ↗Amendments to the Companies Act and related laws required companies to identify beneficial owners and notify the Bermuda Monetary Authority of ownership/control changes of 10%+ within 14 days. Established the disclosure regime new incorporations must satisfy.
Bermuda Monetary Authority ↗Created the LLC, Bermuda's first new commercial vehicle in over a century, modelled closely on Delaware law, formed by filing a certificate of formation with the Registrar. Broadened the menu of structures available to founders.
Government of Bermuda ↗The principal statute governing incorporation, management and dissolution of Bermuda companies, distinguishing locally owned companies (subject to the 60/40 rule) from exempted companies that may be 100% foreign-owned and trade outside Bermuda. Still the backbone of starting a business today, with non-consent incorporations possible within a day.
Bermuda Laws (Government of Bermuda) ↗Bermuda - other topics
Starting a Business in other countries
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