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Business Permits & Incorporation for Foreigners in Hamilton

Good to know

Good to Know

  • An exempted company (the standard foreign-ownership vehicle) is legally barred from trading within Bermuda's domestic market or owning Bermuda real estate — it's built for businesses that operate internationally but base themselves in Bermuda, not for opening a local Hamilton storefront or service business.
  • You cannot self-file as an individual — Bermuda's own government guidance states you need a Bermuda-based law firm, accounting firm, or licensed corporate service provider to take you through the formation steps.
  • There's no requirement to have a local Bermudian business partner or co-owner for an exempted company, but you do need a Bermuda-resident director, secretary, or resident representative on file — in practice this role is almost always filled by your corporate service provider for a recurring fee.
  • Shelf companies are not available in Bermuda — every incorporation is a new entity built from scratch, so budget for the full filing/KYC process even if you're in a hurry.
  • Bermuda has essentially zero corporate income tax for typical foreign-owned small businesses — the new 15% CIT introduced in 2025 only bites on huge multinational groups with €750 million+ global revenue, so it is not a real concern for a nomad-scale business.
  • The biggest practical barrier for a foreigner isn't tax, it's immigration policy: Bermuda's Department of Immigration does not normally allow non-Bermudians to be self-employed serving the local market, so most remote workers instead rely on a residency status (like a Sponsored Dependant permit or digital nomad-type certificate) that lets them keep working for an overseas employer/clients.
  • If you only ever bill foreign/overseas clients and your employer has no branch or office in Bermuda, you generally do not need a Global Work Permit — but the moment you start earning from Bermuda-based clients, payroll tax registration and typically a standard work permit come into play.
  • Forming a fully foreign-owned company (an 'Exempted Company') is possible and common for larger international operators, but it involves Bermuda Monetary Authority approval, a resident director/representative requirement, and real legal/setup costs — it's generally overkill for a solo freelancer just trying to live and work remotely from the island.
  • There is no VAT or general sales tax in Bermuda, but be aware of payroll tax (if you have local clients or employees), social insurance contributions, and — if outsourcing to a local registered agent — the 7% corporate services tax layered onto their fees.

Corporate Tax Overview

Standard Rate
0% on income, profits, dividends and capital gains for the vast majority of Bermuda companies — there is no general corporate income tax, no capital gains tax, no withholding tax on dividends/interest/royalties, and no VAT or sales tax.
Double Taxation Treaties
Bermuda has not entered into broad double taxation agreements; it relies instead on Tax Information Exchange Agreements (TIEAs) with the US and 40+ other jurisdictions and participates in the OECD's Common Reporting Standard and Convention on Mutual Administrative Assistance in Tax Matters.

New Multinational Minimum Tax

Description
A new 15% Corporate Income Tax (CIT) took effect for fiscal years beginning on or after 1 January 2025, but it only applies to entities that are part of a multinational enterprise (MNE) group with global annual revenue of €750 million or more (aligning Bermuda with the OECD Pillar Two global minimum tax). Solo founders, freelancers, and small-to-mid-size foreign-owned companies fall far below this threshold and remain untaxed on income.
Citation Note
Bermuda enacted the Corporate Income Tax Act 2023, introducing a 15% corporate income tax effective for fiscal years beginning on or after January 1, 2025, applying to Bermuda-based entities in MNE groups with annual revenue of EUR 750 million or more; smaller companies remain exempt.

Entity Types Relevant To Foreigners

  • Exempted Company
    Stamp Duty
    Exempted companies and partnerships ordinarily are not subject to Bermuda's stamp duty on legal instruments, unlike local companies.
    Who Its For
    The standard vehicle for foreign-owned businesses that will operate internationally rather than sell into the local Bermuda market.
    Requirements
    Requires Bermuda Monetary Authority (BMA) approval to incorporate, including disclosure of beneficial ownership. Minimum of one director and one shareholder (may be non-resident/corporate), but must retain at least one director, secretary, or resident representative who is based in Bermuda.
    Foreign Ownership
    Can be 100% owned and controlled by non-Bermudians and is exempt from Bermuda's exchange controls.
  • Local Company
    Who Its For
    For businesses selling directly into the Bermuda domestic market.
    Requirements
    Subject to Bermuda's standard corporate governance and, unlike exempted companies, to stamp duty on relevant legal instruments.
    Foreign Ownership
    Restricted — must be at least 60% beneficially owned and controlled by Bermudians, with directors also required to be Bermudian in most cases. This makes it impractical as a solo foreign-owner vehicle unless partnering with Bermudian shareholders.
  • Permit Company (Overseas Company with a Permit)
    Who Its For
    A company incorporated abroad that obtains a permit from the Minister of Finance to carry on business in or from Bermuda.
    Requirements
    Requires ministerial application; treated similarly to an exempted company for tax purposes.
  • Sole Proprietorship
    Who Its For
    Simplest legal form, one owner, personally liable for business debts.
    Registration
    A sole proprietor must register with the Office of the Tax Commissioner and the Department of Social Insurance, and is encouraged to also register with the Bermuda Economic Development Corporation (BEDC).
    Foreign Ownership Reality
    Bermuda's Department of Immigration policy states non-Bermudians will not normally be permitted to be self-employed in a local business context, because self-employment is treated as 'the running of a business and the ability to make final decisions on its operation.' In practice, foreigners on the island are generally only able to operate as a sole proprietor if serving purely foreign/overseas clients (no Bermuda-based clients) while holding a valid residency status such as a Sponsored Dependant or Digital Nomad status, or under a specific work permit tied to a Bermuda employer.

Other Taxes That Apply Regardless Of Income Tax Exemption

  • Payroll Tax
    Rates
    Progressive employer rates from roughly 10.75% (payroll BMD 200,000–500,000) up to 13.5% for payrolls over BMD 1,000,000, with exempted undertakings also taxed at 13.5%.
    Who Pays
    Levied on employers (with a portion economically borne by employees via payroll deduction) based on total annual payroll, and self-employed persons also register and pay payroll tax on their own remuneration.
    Self Employed Note
    If you are self-employed and work with Bermudian-based clients, payroll tax registration is required.
  • Social Insurance Contributions
    Detail
    Employers and employees (or a self-employed person covering both halves) contribute a fixed weekly amount to Bermuda's Contributory Pensions Fund for anyone working more than four hours a week.
    Amount Example
    BMD 30

    per employee per week, employer's share (employee matches)

  • Corporate Services Tax
    Rate
    7% tax on the gross revenue earned by providers of corporate services (administration, management, secretarial, registered office, accounting/financial services) from exempted companies and partnerships — relevant if you use a local corporate service provider/registered agent.
  • Annual Government Company Fee
    Detail
    Every company pays an annual fee to the Registrar of Companies based on assessable/share capital. Exempted company fees have been cited in the range of roughly BMD/USD 1,870–1,995 at the lowest tier up to over BMD/USD 29,000–31,000 at the highest tier.
    Example Low Tier
    BMD 1,995
    Example High Tier
    BMD 31,120
  • Customs Duties
    Detail
    Since there is no VAT/sales tax, the government leans heavily on import customs duties, commonly cited around 25% on most goods brought onto the island, relevant for any business importing physical stock.

Entity Types

  • Exempted Company
    Foreign Ownership
    100% permitted
    Description
    The standard vehicle for foreign-owned businesses operating internationally from a Bermuda base.
  • Local Company
    Foreign Ownership
    Restricted — Bermuda companies fall into local companies (incorporated by Bermudians to trade primarily in Bermuda) versus exempted companies (incorporated by non-Bermudians to conduct business outside Bermuda), and local companies must keep at least 60% Bermudian beneficial ownership.
    Description
    For businesses trading primarily inside Bermuda.
  • Overseas/Permit Company
    Description
    A foreign-incorporated company applying for a permit to carry on business in or from Bermuda, generally only granted where a Bermuda company could not carry out the same activity.

Typical Cost

Professional Formation Service Fee Example
BMD 16,500

One formation-agent quote for a standard exempted company with authorized capital up to USD/BMD 12,000, covering registration service fees and disbursements. Other providers advertise packages starting far lower (roughly USD 3,000–4,000); actual all-in cost varies significantly by law firm/CSP and scope of ongoing services (registered office, resident representative, secretary), so treat this as an indicative data point rather than a fixed market rate.

Government Incorporation And Annual Fee

Note
Government filing fees and an annual government fee apply, calculated according to the company's assessable share capital and due first at incorporation and then every January; exact fee tables were not independently confirmed at the time of research and should be checked directly with the Registrar of Companies or BMA before budgeting.

Currency Local

BMD

Economic Substance Requirements

Filing
In-scope entities must file an annual Economic Substance Declaration with the Registrar of Companies, generally due six months after financial year end; knowingly filing false information is a criminal offence.
Reduced Regime
Pure equity holding entities and purely local Bermuda-only businesses qualify for a lighter 'minimum' substance regime rather than the full requirements.
What It Requires
In-scope entities must show their core income-generating activities happen in Bermuda, maintain adequate physical presence, employees, and expenditure on the island, and be directed and managed from Bermuda (e.g. board meetings held locally).
Who It Applies To
The Economic Substance Act 2018 applies to exempted and local companies, LLCs, permit companies, and certain partnerships that carry on a defined 'relevant activity' — banking, insurance, fund management, financing/leasing, headquarters, shipping, distribution and service centre business, intellectual property holding, or (pure) holding entity.
Practical Relevance
This mainly matters for larger structured entities (holding companies, IP boxes, financing vehicles) rather than a small solo consultancy — but any foreign-owned exempted company should confirm at incorporation whether its planned activity is a 'relevant activity' under the Act.

Filing And Ongoing Obligations Summary

Filing And Ongoing Obligations Summary

  • Register with the Office of the Tax Commissioner for payroll tax purposes if you have any Bermuda-based employees, contractors serving local clients, or are self-employed serving local clients.
  • Register with the Department of Social Insurance for pension contributions for yourself and any employees.
  • Exempted companies file an annual Economic Substance Declaration if conducting a relevant activity, plus the standard annual Registrar filing/fee.
  • MNE groups meeting the €750M revenue threshold must additionally register for and file under the new Corporate Income Tax regime; this is not relevant to the vast majority of foreign-owned small businesses or freelancers in Bermuda.

Freelancer Vs Company Practical Guidance

Core Distinction
The determining factor for a foreigner in Bermuda is not 'freelancer vs company' in the abstract, but whether your clients/income are local (Bermuda-based) or entirely foreign/overseas, and what residency status you hold.
Practitioner Recommendation
Legal advisories in Bermuda have noted that for someone simply trying to keep working remotely for a foreign employer while resident in Bermuda, it is generally simpler and legally cleaner to remain employed/contracted by the overseas company than to attempt incorporating a Bermuda entity, given the cost and complexity of the local structuring options.
Serving Only Foreign Clients
If you are providing services exclusively to clients/employers outside Bermuda with no local presence, Bermuda's Department of Immigration has confirmed that a person with the right to reside (e.g. a Sponsored Dependant) can work remotely for that overseas employer without needing a full Global Work Permit, provided the employer has no branch, affiliate, or subsidiary on the island. This is the most realistic route for most remote-working nomads.
Forming A Full Company As A Foreigner
Setting up a local company is heavily constrained by the 60% Bermudian-ownership rule, making it impractical for a solo foreign founder. The realistic incorporation route for a wholly foreign-owned operating business is the Exempted Company structure, which permits 100% foreign ownership but is designed around conducting business primarily outside Bermuda, requires BMA approval, and carries meaningfully higher setup/compliance overhead (legal, registered office, resident representative) than simply remaining an employee or contractor of an overseas company.
Serving Local Clients Or Earning Bermuda Income
Providing trade, services, or skills to the local economy or to Bermuda-based companies as a foreigner normally requires a standard work permit sponsored by an employer with a presence on the island — you generally cannot simply set yourself up as an independent local sole trader.

Foreigners incorporating in Bermuda almost always use the 'Exempted Company' vehicle rather than a standard 'local company'. A local company would otherwise require 60% Bermudian ownership, but exempted companies are specifically carved out from that rule so a non-Bermudian can hold 100% of the shares, provided the company conducts its business outside Bermuda (it cannot trade locally, own Bermuda real estate, or compete in the domestic market).

Official Links

Formation Steps

Formation Steps

  • Engage a Bermuda-based law firm, accounting firm, or licensed corporate service provider (CSP) — the government's own guidance states this assistance is required to set up a limited company in Bermuda.
  • Reserve the proposed company name with the Registrar of Companies (RoC).
  • Submit the application to incorporate (memorandum of association / bylaws) to the RoC together with the BMA application disclosing intended beneficial ownership and business activity.
  • Supply Personal Declarations from beneficial owners holding 10%+ of voting shares, and complete standard KYC/due-diligence documentation.
  • Obtain BMA approval (and Ministry of Finance consent only if the activity is a restricted/regulated one).
  • Pay government incorporation fees and the first annual government fee (calculated on the company's assessable share capital).
  • Appoint directors and a resident secretary or resident representative; establish the registered office in Bermuda.
  • Issue shares and share certificates once the certificate of incorporation is granted.

Typical Timeline

Practical Agent Estimate
Corporate service providers commonly quote roughly 3–5 working days for full exempted-company incorporation once documentation and KYC are complete.
Ministerial Consent Required
Where Minister of Finance consent is required (restricted activities like insurance, funds, trust or deposit-taking business), processing takes up to about a week from when the Registrar has received all necessary information and personal declarations from proposed beneficial owners.
No Ministerial Consent Needed
Formation of a limited company, partnership, or LLC that does not require Minister of Finance consent can generally be completed within one day to a few working days after the RoC receives a complete application; the Bermuda Monetary Authority has indicated incorporation can be completed the same day the government receives the filing, with 2–3 working days typical processing time excluding courier/shipping time and the time needed to gather KYC documents.

Regulatory Approval

Bma Approval
The Bermuda Monetary Authority (BMA) must approve the incorporation of all Bermuda exempted companies, with an application submitted disclosing beneficial ownership and including a personal declaration from any non-Bermudian beneficial owner. Personal Declarations are required specifically from beneficial owners holding 10% or more of the voting shares, unless they are already well known to the Authority or are public companies listed on an approved stock exchange.
Ministerial Consent
Consent of the Minister of Finance to incorporate is only required for companies engaging in restricted activities — investment business, trust business, mutual fund business, deposit-taking, money services, and insurance. Most ordinary exempted companies do not need this extra step.

Can Be Done Remotely

The incorporation process — document preparation, name reservation, RoC and BMA filings — can generally be completed without the founder visiting Bermuda in person, using a local law firm/CSP as agent.

Capital Requirements

There is no required minimum share capital to maintain — companies limited by shares are not required to maintain a minimum share capital, and the minimum issued capital can be as low as one share of any par value. Many formation agents set a standard 'assessable' authorized capital of USD 12,000 (12,000 shares of USD 1) purely because this is the threshold that attracts the lowest tier of annual government fees.

Local Partner Or Sponsor Requirement

There is no requirement to bring in a local Bermudian co-owner or business partner for an exempted company — shareholders are not required to be Bermudian residents or nationals, and foreign nationals may hold 100% of the shares. However, the company must have either a director, secretary, or resident representative who is ordinarily resident in Bermuda — this is a resident-officer requirement, not an ownership/partner requirement, and is typically satisfied by hiring a Bermuda-based corporate service provider to act as resident representative or secretary. A registered office physically located in Bermuda is also mandatory.

Director And Shareholder Requirements

The Companies Act 1981 requires a minimum of one director and one shareholder to incorporate an exempted company; these can be of any nationality and need not be resident in Bermuda, and the same person can fill both roles. Corporate shareholders and nominee shareholders are permitted, and there is no statutory maximum on the number of shareholders.

AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this business permits & incorporation for foreigners research for this city. Individual figures may not each trace to one of them.

  1. 1.gov.bm
  2. 2.cdn.bma.bm
  3. 3.gov.bm

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Data last updated July 2026 · Verify anything important.