Starting a Business · Bermuda
Starting a business in Bermuda: foreigner's guide (2026)
Bermuda shaded by its starting a business status
A foreigner can incorporate a Bermuda 'exempted company' with 100% foreign ownership in roughly 5-7 business days via BMA approval, making formation for international business relatively fast and open. However, exempted companies generally cannot trade in the domestic Bermudian economy; doing local business requires a 'local company' subject to the 60/40 rule (at least 60% Bermudian ownership, voting and directors), and a Bermuda registered office plus resident agent/secretary are mandatory. Beneficial-ownership disclosure to the BMA and a local corporate service provider are required, so the process is open but procedurally controlled.
Key points
An exempted company may be 100% owned by non-Bermudians and is exempt from local ownership rules, but local (non-exempt) companies trading in the domestic economy must satisfy the 60/40 rule: Bermudians beneficially own at least 60% of shares, hold 60% of voting rights and form 60% of directors.
Incorporation of all exempted companies must be approved by the Bermuda Monetary Authority; personal declarations are required from beneficial owners holding 10% or more of voting shares, unless the owner is already known to the Authority or is a listed public company.
Standard sequence: reserve the company name with the Registrar; apply to the BMA stating intended business and beneficial ownership; obtain BMA approval (and Minister of Finance consent for investment, trust, fund, deposit-taking, money-services or insurance business); register the Memorandum of Association with the Registrar, who issues the certificate of incorporation.
There is no statutory minimum paid-up capital under the Companies Act 1981 (a single share with par value suffices; shares of no par value and bearer shares are not permitted). In practice exempted companies commonly use an authorised capital around US$12,000 to align with government fee bands.
Incorporation of an exempted company is typically completed within about five to seven business days once the application and beneficial-ownership information are submitted to the BMA.
A Bermuda registered office and at least one director plus a resident secretary or resident representative are required. Bermuda generally prohibits foreign franchises (except franchise hotels), and from July 2012 the 60/40 rule was relaxed only for certain prescribed/listed industries (e.g., telecoms, energy, insurance, hotels, banking, international transport).
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
Last verified 5/23/2026 · Orientation, not legal advice - verify against the primary sources linked above. Explore the full world map →