How to start a business in Bermuda as a foreigner (2026)

Legal framework

Companies 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.

Key points: starting a business in Bermuda

1. 01Foreign ownership

   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.

   gov.bm taxsummaries.pwc.com

2. 02Minimum capital

   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.

   cdn.bma.bm conyers.com

3. 03Setup steps

   (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.

   cdn.bma.bm gov.bm

4. 04Local presence requirement

   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.

   conyers.com cdn.bma.bm

5. 05Typical timeline

   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.

   cdn.bma.bm gov.bm

6. 06Living/working on-island

   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.

   gov.bm conyers.com

7. 07Beneficial ownership disclosure

   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.

   gov.bm walkersglobal.com

Timeline of decisions

1. 3 Nov 2025Law · official
   Beneficial Ownership Act 2025 enters into force

   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)

2. 21 Feb 2020Guidance · official
   Government announces relaxation of the 60/40 ownership rule

   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

3. 17 May 2019Decision · official
   EU removes Bermuda from list of non-cooperative tax jurisdictions

   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)

4. 1 Jan 2019Law · official
   Economic Substance Act 2018 takes effect

   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)

5. 1 Jan 2017Law · official
   Beneficial ownership registration introduced

   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

6. 1 Oct 2016Law · official
   Limited Liability Company Act 2016 comes into force

   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

7. 1 Jan 1981Law · official
   Companies Act 1981 enacted, foundation of company formation

   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)

Sources

1. 1.gov.bm/print/html/node/778716
2. 2.gov.bm/articles/conducting-business-bermuda
3. 3.gov.bm/types-work-permits
4. 4.gov.bm/articles/implementation-beneficial-ownership-act-2025-next-steps
5. 5.cdn.bma.bm/documents/2019-01-01-10-11-12-Exempted-Companies.pdf
6. 6.bma.bm/viewPDF/documents/2023-11-14-10-39-37-Companies-Act-1981.pdf
7. 7.taxsummaries.pwc.com/bermuda/corporate/other-issues
8. 8.conyers.com/wp-content/uploads/2018/12/Bermuda_Exempted_Companies-BDA-3.pdf
9. 9.conyers.com/publications/view/bermudas-economic-investment-residential-certificat
10. 10.walkersglobal.com/en/Insights/2025/10/Bermudas-Beneficial-Ownership-Act-2025