I get asked about Bermuda a lot. Usually by people who’ve just realized their home country treats entrepreneurs like ATMs. And I understand why: pink sand beaches, no income tax, a British pedigree that still means something in banking circles. But let me be blunt—setting up an Exempted Company in Bermuda isn’t cheap. It’s not a jurisdiction for bootstrappers or digital nomads running Shopify stores from Bali. This is institutional-grade structuring.
So what does it actually cost to incorporate and maintain a Bermuda Exempted Company? I’ve pulled data from official sources—the Registrar of Companies, the Bermuda Monetary Authority (BMA), and professional service providers on the ground. Let me walk you through the numbers.
What You’ll Pay Upfront: The Creation Costs
Bermuda doesn’t do things halfway. The initial setup for an Exempted Company Limited by Shares will run you just over BMD $13,000 (approximately $13,000 USD, as the Bermudian dollar is pegged 1:1 with the USD). Here’s the breakdown:
| Item | Cost (BMD) |
|---|---|
| Company Name Reservation Fee | $100 |
| Application for Consent to Incorporate (BMA) | $340 |
| Registration Fee (Registrar of Companies) | $100 |
| Initial Annual Government Fee (Assessable Capital < $12,000) | $2,095 |
| Initial Corporate Regulatory Fee | $500 |
| Average Legal and Professional Incorporation Fees | $10,000 |
| Total Sunk Costs | $13,135 |
Notice that nearly 76% of your initial cost is the legal and professional fees. That $10,000 (~$10,000 USD) figure is what competent counsel charges to shepherd your application through the BMA’s approval process, draft your Memorandum of Association and Bye-Laws, and ensure compliance with local substance rules. You can’t DIY this. Bermuda doesn’t allow it, and frankly, you wouldn’t want to.
Good news? The minimum capital requirement is BMD $1 ($1 USD), and you don’t have to deposit it upfront. This is a paper requirement, not a liquidity trap.
The Annual Burn Rate: Maintenance Costs
Once your company exists, the meter keeps running. Expect to pay between BMD $7,595 and $12,500 (~$7,595 to $12,500 USD) per year, depending on the level of service you need. Here’s the minimum baseline:
| Item | Annual Cost (BMD) |
|---|---|
| Annual Government Fee (Assessable Capital < $12,000) | $2,095 |
| Annual Corporate Regulatory Fee | $500 |
| Registered Office and Secretarial Services (Minimum) | $3,500 |
| Resident Representative Fee | $1,500 |
| Minimum Annual Total | $7,595 |
That $7,595 (~$7,595 USD) is the floor. If your assessable capital increases (basically, your authorized share capital plus share premium), your government fee scales up. I’ve seen companies with assessable capital over $100,000 paying north of $32,000 annually just in government fees. Not a typo.
The registered office and secretarial services are non-negotiable. Every Exempted Company must have a registered office in Bermuda and a local secretary. Most corporate services providers bundle this with compliance support, minute book maintenance, and directors’ resolutions. The $3,500 (~$3,500 USD) figure is bare-bones; add complexity (nominee directors, additional filings, audit coordination) and you’re quickly at $8,000+ per year.
The Hidden Substance Trap
Here’s what the glossy brochures don’t emphasize: Bermuda has economic substance requirements. If your company is tax-resident in Bermuda and conducts “relevant activities” (holding intellectual property, shipping, fund management, etc.), you must demonstrate adequate substance on the island. That means real office space, qualified employees, or outsourced service providers who can prove the core income-generating activities happen in Bermuda.
Fail to meet substance requirements? Penalties start at $5,000 and escalate. Persistent non-compliance can lead to deregistration or your company’s details being shared with foreign tax authorities under automatic exchange frameworks. Bermuda plays nice with the OECD now.
I’m not saying this to scare you off. Just don’t assume “no corporate tax” equals “no obligations.” The days of pure shell companies are over.
Who Should Actually Use This Structure?
Bermuda Exempted Companies make sense for:
- Insurance and reinsurance operations: Bermuda is the global hub. The regulatory environment is sophisticated but predictable.
- Investment funds: Especially those targeting institutional capital that values Bermuda’s legal framework and UK Privy Council appeal route.
- IP holding structures: If you need a respected jurisdiction with no withholding tax on dividends, royalties, or interest.
- High-net-worth family offices: Where the annual cost is a rounding error and reputation matters.
If you’re running a SaaS company with $200k ARR or a consulting practice, this is overkill. Look at Dubai, Singapore, or even Wyoming. Bermuda is for serious capital and institutional credibility.
The Verdict
Setting up in Bermuda costs around $13,135 (~$13,135 USD) upfront and at least $7,595 (~$7,595 USD) annually, assuming minimal complexity. You’re paying for stability, zero corporate income tax, and a legal system that still respects common law and property rights. But you’re also paying for mandatory professional infrastructure and compliance obligations that aren’t optional.
Is it worth it? If your structure justifies the cost—yes. If you’re jurisdiction shopping for novelty or trying to dodge $5,000 in tax at home—no. Bermuda isn’t a hack. It’s a serious tool for serious structures.
I am constantly auditing these jurisdictions. If you have recent official documentation or updated fee schedules from Bermuda’s Registrar of Companies or service providers on the ground, send me an email or check this page again later—I update my database regularly.