Exempted Company

Benefits of Bermuda Exempted Company Registration


    1 Director, 1 Shareholder Required, No Locals


    Great Banking Opportunities


    Incorporation up to one week


    Legal System Based on Common Law


    No Local Tax for Income

Bermuda Exempted Company’s activities

Under the Bermuda’s Companies Law, Exempted company is an independent legal personality and has the same capacity to engage in any business provided that the activity is allowed by its memorandum and articles of association (agreement), the Laws of Bermuda and does not require a license such as bank, insurance, assurance, collective investment schemes etc.

Bermuda Exempted Company is optimal for:

  1. International Business
  2. Investment and Trading Activity
  3. Crypto-related Activities
  4. Technology and Web Business
  5. Asset and Wealth Protection
  6. Management Companies
  7. Holding Companies
  8. Vessels Ownership

Exempted Company incorporation checklist

If you are considering the incorporation of a Bermuda Exempted Company, you should take into consideration the following points:

Company’s name

It must not contain sensitive words which are prohibited by legislation. The following words are prohibited: “Building Society”, “Chamber of Commerce”, “Chartered”, “Cooperative”, “Municipal”, “Royal” and any other words implying connection with a university or a professional association or an activity prohibited by the Law. There is also a prohibition for words implying patronage of the Queen or a member of the Royal Family, patronage or any connection with the UK government or department or any other country. The following words are the subject for the license: “Assurance” “Bank”, “Insurance” and identical.

The company’s name must not be very similar to existing names on the registrar and it must not contain improper or objectionable words. It must end with a word or abbreviation signifying a limited liability, for example “Limited” or “LTD”.

Registered office

A Bermuda LLC is required to have a registered office address in Bermuda as well as an authorized registered agent in Bermuda.


One director is the minimum required. There’s no requirement for them to be locals and there’s no requirement regarding the place and frequency of board meetings.

The directors’ details are registered on the public record and can be accessed by the public however, nominees are permitted.


The appointment of a secretary is mandatory, and it should be a natural or a corporate person authorized and residing in Bermuda.


One shareholder is the minimum required. There’s no requirement for them to be locals and corporate persons can become shareholders. There’s no requirement regarding the place and frequency of shareholders’ meetings.

The shareholders’ details are registered on the public record and can be accessed by the public however, nominees are permitted.

Beneficial owners

The beneficial owners’ details are registered on the public record but cannot be accessed by the public since the register is confidential.

Share capital

The owners of an Exempted Company are free to determine any amount as the authorized capital at incorporation and it can be denominated in any currency, though the US Dollar is mostly preferred and the amount equivalent to $ 50.000 USD is suggested. The authorized capital is the maximum amount of capital that the company is authorised by its constitutional documents to draw from its shareholders in exchange of shares issued.

Bermuda LLC may have registered shares, with or without voting rights, preferential or common and may be issued in any currency. Bearer shares are not permitted as well as shares without para value.  

Paid up capital

No requirement is imposed on minimum paid up capital at incorporation, this means that the owners of Exempted Company are not required to set a deadline as to when such capital must be paid up.

Incorporation period

LLC in Bermuda can be incorporated up to one weeks. However, the additional week will be required for the legalization of the documents.

Shelf companies

Ready-made but unused Exempted companies are available in Bermuda, if you are in need for a quicker incorporation process.

Economic substance

If the Exempted Company is carrying out certain types of business, it must meet specific physical presence requirements and conduct its main activities which generate income, inside Bermuda. This means that the management and control of the company must be in Bermuda, thus, the company must have enough premises, amount of expenditures and employees within the jurisdiction, based on its business activity and size. The types of business are given below:

Banking, Insurance, Finance and Leasing, Distribution and Service Centre (purchasing assets from other entities belonging in same group or providing services to entities in the same group), Shipping, Intellectual Property, Headquarters Business and Holding companies.

Exempted Companies carrying out the above types business, are also required to file annual returns. There is a scale of substance requirements based on the type of business, holding companies are subject to low-level requirements compared to high-risk IP business (companies which purchase IP from other entities belonging in the same group, leasing it back to the group and receiving revenues for this) are subject to high-level requirements.

Accounting records and annual returns

Exempted company must keep accounting records about its assets and liabilities to reflect accurately its financial situation for five years. That documents may be kept in any place.  Exempted company is required to file its accounting records. These records should be audited however in some cases that requirements can be abandoned. The annual tax return may be filed as well.


There is an exemption in the jurisdiction of Bermuda from any tax on income or profits for exempted companies. In addition, Bermuda imposes no tax on dividends, earnings, rental income and revenues, interest or royalties. The VAT tax is absent as well.

Disclaimer: Buy Now Companies and its affiliates do not provide tax, legal, or accounting advice. Materials provided by Buy Now Companies and [insert domain name] have been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal, or accounting advice. You should consult your own tax, legal, or accounting advisor with regard to your own tax, legal, or accounting scenario. Nothing on this webpage shall be construed as a contractual commitment or as a warranty. Services conditions are governed by the applicable terms and conditions.

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