Cost of Setting Up a Company in Bermuda

Published on October 2, 2025 and written by Cyril Jarnias

Bermuda, a British archipelago located in the North Atlantic Ocean, is renowned for its favorable tax regime and business-friendly environment. Many international entrepreneurs and investors choose to establish their companies there to benefit from tax advantages and a supportive regulatory framework. However, setting up a business in Bermuda involves specific costs that are essential to understand and anticipate. In this article, we will examine in detail the various financial aspects related to incorporating a company in Bermuda, as well as strategies to optimize your investment.

Registration Fees: The Entry Ticket for Your Bermudian Company

The first step in establishing your presence in Bermuda is to register your company with the local authorities. This process involves fees that vary depending on the type of structure you choose.

For an Exempted Company, which is the most common form for foreign investors, registration fees typically amount to approximately 1,995 Bermudian dollars (equivalent to about 1,995 US dollars, as both currencies are at par). This amount covers the filing fees with the Registrar of Companies and obtaining the certificate of incorporation.

It’s important to note that these fees are subject to annual variations and may be adjusted by the Bermuda government. For example, in 2024, a slight 2% increase was applied to certain registration fees.

For Limited Liability Companies (LLCs), an increasingly popular option, registration fees are slightly lower, amounting to approximately 1,750 Bermudian dollars. This difference may seem minimal, but it can be significant for entrepreneurs seeking to optimize their initial costs.

• Name reservation fee: 85 Bermudian dollars
• Filing fee for articles of incorporation: 400 Bermudian dollars
• Certificate of incorporation fee: 125 Bermudian dollars

These fees are in addition to the basic costs mentioned earlier and must be considered in your initial budget.

Compliance Costs: Keeping Your Company in Good Standing

Once your company is registered, you will face recurring costs to ensure its compliance with local regulations. These expenses are essential to maintain your business’s legal status and benefit from the tax advantages offered by Bermuda.

Annual maintenance fees: Each year, your company must pay maintenance fees to the Registrar of Companies. For an exempted company, these fees amount to approximately 1,995 Bermudian dollars per year. These fees ensure that your business remains in good standing and retains its tax-exempt status.

Audit and accounting costs: Although Bermuda does not impose strict audit requirements for exempted companies, maintaining rigorous accounting records is strongly recommended. Annual costs for these services can range between 5,000 and 15,000 Bermudian dollars, depending on the complexity and size of your business.

Resident agent fees: Bermudian law requires that every exempted company have a resident agent on the island. Annual fees for this service typically range between 1,500 and 3,000 Bermudian dollars. This agent plays a crucial role in managing official communications and maintaining your company’s compliance.

• Annual return filing fee: 600 Bermudian dollars
• License renewal fee: 1,000 Bermudian dollars (for certain types of activities)
• KYC/AML compliance costs: Variable, but can reach several thousand dollars per year

It is crucial to budget for these recurring costs to avoid surprises and ensure the longevity of your Bermuda structure.

Initial Investment: Laying the Groundwork for Your Success

Beyond registration and compliance fees, establishing a company in Bermuda often requires a substantial initial investment to start your operations effectively.

Minimum share capital: Unlike many jurisdictions, Bermuda does not impose a minimum share capital requirement for exempted companies. However, it is recommended to have sufficient initial capital to demonstrate your company’s financial strength. An amount of 10,000 to 50,000 Bermudian dollars is generally considered appropriate, although this may vary depending on the nature and scale of your planned activities.

Office and infrastructure costs: If you plan to have a physical presence in Bermuda, real estate costs can be significant. Renting office space in prime business areas like Hamilton can cost between 50 and 80 Bermudian dollars per square foot per year. For a small 500-square-foot office, this represents an annual investment of 25,000 to 40,000 Bermudian dollars.

Technology and communication expenses: Bermuda’s technological infrastructure is high-level but comes at a cost. Installing a robust and secure communication system, essential for international operations, can easily reach 10,000 to 20,000 Bermudian dollars.

• Legal fees for structuring: 5,000 to 15,000 Bermudian dollars
• Recruitment and training costs: Variable, but significant if you employ local staff
• Professional insurance: 3,000 to 10,000 Bermudian dollars per year, depending on the industry

These initial investments, although substantial, are crucial for establishing a solid foundation for your Bermuda operations and maximizing the benefits offered by this jurisdiction.

Operational Expenses: Managing Your Bermudian Company’s Daily Operations

Once your company is established in Bermuda, you will face regular operational expenses to maintain your activities. These costs can vary considerably depending on the nature and scale of your business, but it’s crucial to anticipate them for sound financial management.

Salary costs: If you employ local staff, be aware that Bermuda has a high cost of living, which is reflected in wages. A qualified office employee can cost between 50,000 and 80,000 Bermudian dollars per year, while management positions can easily exceed 150,000 Bermudian dollars annually. Additionally, employers are required to contribute to their employees’ social security and health insurance, adding approximately 10% to salary costs.

Banking fees: Banking services in Bermuda are sophisticated but can be costly. Monthly fees for a corporate account typically range between 50 and 200 Bermudian dollars, plus transaction fees. For companies conducting numerous international transactions, these costs can quickly accumulate.

Telecommunication and internet costs: Bermuda has state-of-the-art communication infrastructure, but at a price. A high-speed business internet package can cost between 200 and 500 Bermudian dollars per month, depending on the required speed and data volume.

• Professional insurance: 3,000 to 10,000 Bermudian dollars per year
• Travel expenses: Variable, but potentially high for frequent business trips
• Marketing and representation costs: Depend on your strategy, but can be significant for establishing your presence in the international market

It’s important to note that these operational expenses must be weighed against the tax benefits offered by Bermuda. Although costs may seem high, the absence of corporate tax on foreign-generated income can represent substantial savings for many businesses.

Cost Reduction Strategies: Optimizing Your Bermuda Presence

Although the costs associated with establishing and operating a company in Bermuda may seem high, there are several strategies to optimize your expenses while fully benefiting from the advantages offered by this jurisdiction.

Utilizing shared services: Instead of renting dedicated offices, consider using coworking spaces or virtual office services. These options can significantly reduce your real estate costs while providing you with a professional address in Bermuda. For example, a virtual office service can cost between 200 and 500 Bermudian dollars per month, compared to several thousand for a physical office.

Outsourcing non-essential services: To reduce salary costs, consider outsourcing certain functions such as accounting, IT support, or marketing to specialized providers. This approach can save you up to 40% on these expense items compared to hiring full-time staff.

Legal tax optimization: Work with tax experts to structure your operations to maximize the tax benefits offered by Bermuda. For example, by strategically separating your onshore and offshore activities, you can potentially reduce your overall tax burden significantly.

• Negotiating banking fees: Some banks offer special packages for new businesses
• Using cloud technologies: Reduce your IT infrastructure costs by opting for cloud solutions
• Participating in government programs: Certain sectors benefit from special incentives that can reduce operational costs

Long-term strategic planning: Investing in detailed planning of your Bermuda operations can reveal substantial long-term savings opportunities. For example, a thorough cost-benefit analysis might show that a higher initial investment in automation could significantly reduce your operational costs over a 5 to 10 year period.

By adopting these strategies, many companies have successfully reduced their operational costs in Bermuda by 20 to 30% while maintaining an effective and compliant presence.

Conclusion: A Strategic Investment for Your International Expansion

Establishing a company in Bermuda represents a significant investment, but one that can be highly profitable for businesses seeking to optimize their international structure. Although initial and operational costs may seem high, they must be viewed in perspective with the considerable advantages offered by this jurisdiction.

Bermuda offers not only a favorable tax regime but also political stability, a solid regulatory framework, and a premier international reputation. These combined factors can bring significant added value to your business, whether in terms of reducing overall tax burden, accessing new markets, or asset protection.

It is crucial to approach establishing a company in Bermuda with careful planning and a clear understanding of your long-term goals. By carefully weighing costs against potential benefits and implementing cost optimization strategies, you can maximize your return on investment.

Successful businesses in Bermuda are those that look beyond initial costs and understand the strategic value of a presence in this premier jurisdiction. With a thoughtful approach and expert advice, your Bermudian company can become a crucial pillar of your international expansion strategy.