What Does It Really Cost to Set Up an Offshore Company in Bermuda?

Published on August 16, 2026 and written by Cyril Jarnias

Setting up in Bermuda is a dream for many international entrepreneurs: no corporate income tax for most structures, no VAT, no withholding tax on dividends… But behind the image of a tax haven lies a much more prosaic reality: creating and maintaining an offshore company in Bermuda in 2026 requires a substantial budget, far from a cheap “mailbox” structure.

Good to know:

The cost of incorporating a company in Bermuda in 2026 varies considerably, from one to three times, depending on the structure chosen and the level of local substance required. This cost depends on detailed figures, official fee schedules, and offers from specialized service providers. It is essential to budget each expense item based on these factors, as the gap can be very significant.

The main types of structures and their average costs

Before even talking about amounts, it is necessary to distinguish the main types of entities used in Bermuda, because the overall costs are not the same depending on the legal form chosen and the investor’s objective.

In Bermuda, several vehicles coexist:

Legal forms in Bermuda

The main company structures available in the Bermudian jurisdiction, depending on their use and target market.

Exempted Company

The most used form for international offshore operations.

Limited Liability Company (LLC)

Often used for domestic activities or structures subject to tax residency.

Local Company

Intended for the internal Bermudian market.

Exempted Partnerships

Includes limited partnerships, suitable for investments and joint ventures.

Branch

Branch of a foreign company operating in Bermuda.

Permit Company

Specific form for certain regulated or restricted activities.

A table of consolidated average costs provides an initial order of magnitude. These amounts generally include incorporation, bank account opening, project management, and basic government fees.

Type of Bermudian entity	Overall average engagement cost (US$)
Exempted company	21,110
Branch of a foreign company	23,580
Local company	18,980
Exempted partnership	18,950
Tax-resident LLC (average indication)	18,980
Permit company	23,580
Average annual renewal (all entities)	16,458

These figures are not legal fee schedules, but averages of turnkey packages sold by major providers (often including banking support and some secretarial services). They nonetheless give a clear idea: creating an offshore company in Bermuda rarely costs less than US$15,000 to US$20,000 in the first year when all essential services are included.

“Bare” incorporation fees: what the Bermudian government charges

To understand where these overall amounts come from, we first need to look at the purely governmental fees – those paid to the Registrar of Companies and the Bermuda Monetary Authority (BMA). They are significantly more modest than the all-inclusive packages, but they only cover a small part of the total expenditure.

Exempted company: the backbone of most offshore structures

The exempted company remains the flagship tool for international operations. From a strictly legal standpoint, initial registration is relatively affordable.

The most commonly cited data indicate that in 2026:

– the incorporation fees for an exempted company are around BMD 1,995 (i.e., approximately US$1,995, with the Bermudian dollar at parity with the U.S. dollar) for the “registration + certificate of incorporation” part with the Registrar;

– this amount covers the filing of constituent documents and the issuance of the certificate of incorporation.

Example:

Some fee schedules detail the breakdown of amounts or rates specifically for a standard company, specifying the various categories or items concerned.

Item (exempted company)	Approximate amount (BMD)
Registration fees + certificate	1,995
Name reservation (outside package)	85
Filing of articles/memorandum	400
Certificate of incorporation (outside package)	125

These administrative fees therefore remain limited – on the order of a few thousand dollars – as long as we are only talking about the act of incorporation. What drives up the bill are intermediary fees, mandatory ancillary services (registered office, resident representative, secretariat), and, from the second year onward, the array of renewal fees.

Bermudian LLC: slightly cheaper in government fees

The Limited Liability Company (LLC) is often presented as a somewhat more flexible and sometimes less expensive alternative to an exempted company, particularly in terms of governance. On the government side, the basic figures are as follows:

1,750

The total registration fees for an LLC in Bermuda, including name reservation, document filing, and certificate of formation, amount to approximately BMD 1,750.

In general, the texts indicate that: information must be accurate and well structured to ensure optimal understanding.

– the incorporation of an exempted company can be completed in approximately one week;

– the incorporation of an LLC takes on average two weeks.

In both cases, the minimum capitalization can theoretically be limited to US$1, and the limited liability of the members is guaranteed. The absence of corporate income tax (except for large multinationals subject to the 15% regime) applies to both forms.

Local companies: separate fee schedule

So-called “local” companies, focused on the Bermudian market and often majority-owned by residents, operate under a separate fee schedule:

Item (local company)	Amount (BMD)
Application for consent to the Registrar	320
Filing of the Memorandum of Association	95
Annual Return of Shareholdings filing fee	50
Stamp duty on the Memorandum (0.5% of stated capital, e.g., BMD 0.50 for BMD 100 of capital)	variable
Basic annual fees	685 (342 if formed after August 31)

We therefore see that, strictly on the “Registrar” side, Bermuda is no more expensive than many competing offshore jurisdictions. The gap then comes from service and substance obligations.

How much does a complete package for an offshore company in Bermuda cost?

Foreign investors never simply pay the government registration fees. They must necessarily go through a licensed Corporate Service Provider (CSP), have a local registered office, a resident representative/office, and often a Bermudian company secretary. These services are what explain the five-figure packages.

Price indications for an exempted company

Market offers are numerous, but they provide a consistent range for 2026.

Several sources notably mention:

Offshore company formation packages

Compare the various packaged offers for forming an exempted or other Bermuda company, with official fees and services included.

Exempted Company Package

Complete package at US$10,700 including all government and registration fees, duties, and a first year of basic services.

Bermuda Package

Packaged offer at approximately US$7,807 for a Bermuda company, covering official fees and standard services.

Essential Registration Plan

Registration at US$6,925 including preparation of legal documents, registration, payment of taxes and formation fees, and a legal address for one year.

Premium Package

Premium package at US$18,890 for year 1, with year 2 from US$9,800.

There are also offers in pounds sterling for exempted companies:

Component of a package in £ (example)	Indicative amount
Exempt Company formation package (incl. BMA filings, drafting of articles, etc.)	£6,400
Administration & Registered Office (mandatory)	£1,800
Resident Bermudian Company Secretary (mandatory)	£3,000

In other words, even in “economy” versions sold by international providers, it is rare to go below US$7,000–US$8,000 all-inclusive for the first year, and many players instead advertise US$10,000 to US$20,000 for a well-supported setup.

LLC: formation advertised at around US$10,000

Available data suggests that the all-inclusive formation of a Bermudian LLC (excluding banking, specific licenses, initial capital, and various third parties) is around:

18,980

Average total engagement cost for a tax-resident LLC, including management, compliance, and banking services.

Note that the fees indicated in these packages systematically exclude several heavy items: resident directors, licenses for regulated activities (insurance, banking, digital assets, etc.), the actual implementation of substance (offices, employees), opening accounts at certain local banks, etc.

Recurring annual fees: the hidden bill

Once the company is created, the cost most neglected by project sponsors is that of annual renewals – not only government fees, but above all mandatory secretarial, registered office, compliance, and substance services.

Annual government fees for exempted companies and LLCs

For a classic exempted company, several layers of fees accumulate each year:

1. Annual government license/fee based on capital or assessable capital.
2. Corporate regulatory fees (Registrar of Companies Act) applicable since 2024.
3. Registration and filing fees (annual return, etc.).

The most commonly cited fee schedules for an exempted company are as follows (assessable capital):

Assessable capital (exempted company)	Annual government fees (BMD)
0 – 12,000	2,095
12,001 – 120,000	4,275
120,001 – 1,200,000	6,590
1,200,001 – 12,000,000	8,780
12,000,001 – 100,000,000	10,980
100,000,001 – 500,000,000	19,605
Above 500,000,000	32,676

In addition, starting in 2024, an additional corporate regulatory fee is added:

– US$500 per year for non-local entities (exempted and permit companies, overseas companies, exempted LLCs, non-local partnerships);

– US$150 for local entities (local companies, local LLCs, local limited partnerships).

In some structures, the texts also mention: the emotions of the characters.

1,995

This amount represents the annual government administration fees for a basic exempted company.

In summary, a baseline of BMD 2,000 to BMD 4,000 in public fees per year is common for a standard exempted company with modest capital. This baseline can climb well beyond for heavily capitalized structures or permit company entities.

Service fees: registered office, secretary, resident representative

On the private side, CSPs charge a series of mandatory services for any offshore company in Bermuda.

Several price schedules make it possible to identify an order of magnitude for 2026:

Recurring annual service (example)	Indicative amount
Registered office + corporate secretarial (local company)	min. BMD 2,000
Registered office + secretariat (exempted/LLC, other provider)	min. US$2,750 – US$3,500
Resident Bermudian secretary/agent (exempted company)	often £3,000
Director provision (per director)	from US$1,250/year
Resident representative (separate package)	approximately US$1,500/year

In some “all-inclusive” packages, a provider indicates:

– US$10,700 per year for all corporate services + government fees for an exempted company or LLC, billed each January (with the first year sometimes prorated, around US$8,500);

– elsewhere, renewal plans at US$9,850 per year are offered, regardless of the initial package (Basic, Standard, or Premium).

Offers in pounds sterling also mention:

Renewal component (example in £ + US$)	Indicative amount
Corporate & Registered Office	£1,800
Resident Company Secretary	£3,000
Government licence fee (e.g., US$1,994 ≈ £1,425)	included or billed separately
Maintenance of directors’ register	£175

Aggregating governments + services, an annual budget of between US$10,000 and US$20,000 is quite common for a properly maintained Bermuda company, which aligns with overall estimates that place the Bermudian “run rate” in the US$10,000–US$20,000/year range.

Other unavoidable recurring costs

Beyond the registered office + secretariat packages, other expenses add to the annual budget:

Attention:

Companies should budget between BMD 5,000 and BMD 15,000 per year for audit and accounting, with a mandatory audit beyond approximately US$500,000 in revenue. KYC/AML compliance and economic substance fees vary, with some providers charging US$200 per request and US$200–US$250 per filing. The resident agent costs BMD 1,500–BMD 3,000 per year for exempted companies. Opening bank or brokerage accounts is charged at a minimum of US$750, with monthly fees of BMD 50–BMD 200 excluding transactions.

In total, combining all these items, it is easy to see how the average estimates of US$16,458 in annual renewal can be reached or even exceeded, particularly as soon as the company has a minimum of local substance (office, staff, systems).

The “substance” dimension: the budget line that changes everything

A purely “paper” company is now difficult to defend in Bermuda if it carries out relevant activities within the meaning of the economic substance regime (insurance, banking, fund management, financing and leasing, headquarters, shipping, IP, distribution and services, pure holding, etc.). The rules governing substance require:

– adequate physical presence;

– a sufficient number of qualified Bermudian or resident employees;

– “adequate” local operating expenses;

– core income generating activities (CIGA) carried out in Bermuda by staff actually present.

All of this comes at a price, often far higher than incorporation and secretarial fees. Available figures provide a realistic order of magnitude.

Real estate, office, and infrastructure

Rents in business districts (for example, in Hamilton) are high:

– BMD 50 to BMD 80 per square foot per year for good-quality offices;

– i.e., for a 500-square-foot office, a cost of BMD 25,000 to BMD 40,000 per year.

15,000

Average initial cost, in BMD, for setting up a secure and robust communication system in an international structure.

Business high-speed internet subscriptions are negotiated between BMD 200 and BMD 500 per month.

These figures show that real substance – even modest – immediately involves five-figure expenses on top of purely legal costs.

Salaries, social charges, and HR

Bermuda is an expensive jurisdiction in terms of labor:

– a qualified office employee typically costs BMD 50,000 to BMD 80,000 per year;

– management positions easily exceed BMD 150,000 per year;

– the employer must contribute to social security and health insurance in the amount of approximately 10% of salary.

Add to that the effects of the local tax system based on payroll tax:

22.5

The maximum combined payroll tax rate (employer and employee) applies to remuneration between BMD 500,001 and BMD 1 million for tax years 2025–2026.

Even though these charges are not “corporate taxes” in the classic sense, they constitute a significant quasi-fiscal expense that groups seeking to demonstrate a real economic presence in Bermuda must factor in.

Insurance, marketing, travel

Other costs, sometimes overlooked, complete the picture:

– professional insurance: between BMD 3,000 and BMD 10,000 per year depending on the activity;

– business travel: variable but high costs for frequent round trips to North America or Europe;

– marketing and representation: significant budgets to build a credible international presence.

A recurring piece of advice in specialized analyses is to distinguish two “layers” of budget:

– a setup layer (incorporation, initial steps, banking);

– an annual layer (agent, substance, accounting, compliance, advisory).

For Bermuda, this second layer can quickly represent several tens of thousands of dollars for an operational structure with offices and staff.

Taxation: 0% for most, 15% for very large groups

Historically, Bermuda is characterized by the absence of classic direct taxes:

– no personal income tax;

– no corporate income tax (CIT) for almost all companies;

– no capital gains tax;

– no withholding tax on dividends and interest;

– no VAT or sales tax.

In 2023, however, Bermuda adopted the Corporate Income Tax Act 2023 (CITA 2023) as part of the OECD Pillar Two project, which takes effect for fiscal years beginning on or after 2025. This law introduces:

[GOODTOKnow title=”15% CIT for large multinational groups in Bermuda” description=”Bermudian entities belonging to multinational groups with consolidated revenue exceeding €750 million are subject to a 15% CIT rate. This mechanism is based on calculating the effective tax rate (Pillar Two) and, if necessary, a top-up tax is applied to reach the 15% threshold.”]

The information specifies that:

Tip:

Exempted companies below the €750 million threshold, local companies, and most fund structures remain at 0% corporate income tax (CIT), thus preserving the majority of offshore entities owned by private investors or mid-sized groups. For groups subject to CIT, the tax is declared and paid in BMD (at parity with USD), with an annual return and advance payments; the balance must be paid no later than the 15th day of the 10th month following the end of the fiscal year.

This new tax regime therefore does not directly increase the cost of setting up a standard company (non-MNE > €750M), but it clearly changes the game for large multinationals that used Bermuda as a profit center without significant substance.

Impact of the “Economic Substance” rules on the budget

The other major reform weighing on the total cost of an offshore structure in Bermuda is the Economic Substance Act 2018 and its regulations. It requires entities carrying out certain activities to:

– be directed and managed from Bermuda;

– carry out their core income generating activities (CIGA) locally;

– maintain an adequate physical presence;

– have a sufficient number of full-time employees and local expenses “commensurate” with their income.

In particular, the texts specify that:

Attention:

The CIGA cannot be outsourced outside Bermuda to satisfy the substance test. Strategic decisions and oversight must take place on the island, with documented board meetings. Entities must file an economic substance declaration (ESD) each year within six months of the end of their fiscal year.

Failure to comply with these obligations leads to: the imposition of sanctions, which may go as far as legal proceedings.

Attention:

In the event of a first failure of the substance test, an initial fine of approximately BMD 25,000 is imposed. If non-compliance persists for a second consecutive year, the fine is increased to BMD 250,000. Additionally, the company risks removal from the register, with notification to partner tax authorities, notably through the OECD and automatic exchange mechanisms.

In parallel, penalties for failure to file the declaration or failure to meet deadlines can amount to daily fines of US$100 to US$500 per day of delay, in addition to flat penalties (e.g., BMD 10,000, then BMD 100,000 and risk of dissolution if the failure persists).

In short, failing to budget for the implementation of substance and related compliance can ultimately cost far more than the savings made on the initial structure.

Comparison with a few other offshore jurisdictions

Comparative figures published by various providers show that Bermuda sits at the high end of the cost range, especially when substance and quality services are included.

For example, annual cost tables indicate:

Jurisdiction	Annual operating cost (approx.)
BVI	US$1,500 – US$4,000
Cayman Islands	US$5,000 – US$12,000
Jersey	US$15,000 – US$30,000
Guernsey	US$12,000 – US$25,000
Bermuda	US$10,000 – US$20,000
UAE (free zone)	US$8,000 – US$20,000

On the strictly tax side, other jurisdictions also show a 0% rate on foreign profits (BVI, Cayman, Nevis, etc.), but with often lower incorporation costs:

Jurisdiction	Incorporation cost (US$ order of magnitude)
Belize	~1,495
Nevis LLC	~1,685
Dubai (RAK, Ajman…)	from 3,290
Switzerland (LLC)	from 5,490
United Kingdom Ltd (basic)	approx. 2,200
Bermuda (package)	7,000 – 10,700+

Bermuda therefore does not compete on a “low-cost” basis, but rather on a premium positioning, appreciated by insurers, investment funds, large MNEs, and private wealth seeking a combination of stability, reputation, and a robust regulatory framework.

In practice: how much should you budget for a “standard” offshore company in Bermuda in 2026?

By aggregating all the figures, we can outline a typical scenario for an exempted company without heavy substance (holding or simple investment vehicle), excluding MNEs > €750M.

Incorporation budget (year 1)

A classic setup would include at a minimum:

– government registration fees: approximately BMD 1,995;

– BMA fees and authorizations: in practice, around US$2,000 when adding the BMA application and some ancillary fees;

– name, articles, and certificate fees: approximately BMD 600 (name reservation, filing of articles, certificate of incorporation) – often included in a package;

– Corporate Service Provider fees for incorporation, advice, preparation, and filing of documents: from US$3,250 (as a minimum in one fee schedule) to US$4,750 or more depending on complexity;

– setup of registered office, secretary, and resident representative for the first year: frequently US$2,000–US$3,500 for basic services;

– opening a bank or brokerage account: at least US$750, sometimes more if the intermediary provides enhanced support.

In practice, these elements converge toward the packages already mentioned:

– US$6,900–US$7,800 for relatively basic plans;

– US$8,500–US$10,700 for more complete offers integrating most standard services and government fees;

– up to US$18,000 and more for customized setups involving advanced legal advice or complex elements (multiple shareholders, holding chains, etc.).

It is realistic, for 2026, to consider a range of US$7,000 to US$20,000 in incorporation budget for an offshore company in Bermuda, with most “serious” structures falling between US$10,000 and US$15,000.

Annual operating budget (from year 2 onward)

For a relatively simple exempted company, without a physical office or significant local staff, the typical recurring budget includes:

2,000 – 4,000

Minimum annual government fees (licence, regulatory, and filings) in BMD for a company in Bermuda, before additional capital-related costs.

Aggregating these elements largely brings us back to the renewal packages announced by several providers:

– US$9,800–US$10,700 per year for “all-inclusive” offers;

– overall costs estimated around US$10,000–US$20,000 for a Bermudian company with a minimum of substance and professional support.

As soon as the company sets up a physical office, hires staff, takes out professional insurance, and invests in infrastructure, it becomes realistic to talk about a six-figure annual overall budget, at least for sizeable operational structures.

Conclusion: a tax haven… but not a haven for small budgets

Creating an offshore company in Bermuda in 2026 remains attractive for three major reasons:

1. Absence of corporate income tax for the vast majority of companies below the €750M consolidated revenue threshold.
2. No withholding tax and no VAT regime, particularly appreciated for holding companies, financing companies, and investment vehicles.
3. Solid legal and regulatory environment, recognized by major financial institutions, making it a jurisdiction of choice for insurance, reinsurance, and sophisticated fund structures.

But this attractiveness comes at a price. Available data clearly show that: the costs associated with this attractiveness can be high and have significant impacts on resources and the environment.

Tip:

The incorporation of an offshore company most often costs between US$7,000 and US$20,000, with turnkey packages around US$10,000 for an exempted company. Annual renewal and service costs generally range between US$10,000 and US$20,000, even for a simple entity. Furthermore, implementing real substance, as required by the Economic Substance Act for certain activities, involves massive investments in offices, staff, systems, and payroll tax, which can bring the overall bill to the level of reputedly costly onshore jurisdictions.

Bermuda is therefore not the ideal destination for an entrepreneur looking to set up a small offshore structure at low cost. It is instead aimed at groups and investors willing to assume a significant annual budget in exchange for a reliable legal framework, ultra-competitive taxation for most structures, and an image as a regulated financial center.

Tip:

For any serious project, it is essential to develop a budget in two stages, in order to plan and adjust the necessary resources with precision.

– a detailed setup cost projection (government fees, CSP, banking, advisory);

– a realistic projection of annual costs, integrating substance, compliance, and payroll tax, at the risk of discovering too late that “no corporate income tax” comes with a high and lasting structural cost.

In 2026, it is this budgetary reality, more than the mere 0% tax rate, that should guide the decision on whether or not to establish an offshore company in Bermuda.

Have an estate planning project or a question? Contact us now to speak with a wealth management expert.