Modern company, trust, banking, insurance and other related laws have made Bermuda an attractive jurisdiction to establish international business. The island enjoys political and economic stability and offers a sophisticated legal system and a highly developed and technically advanced infrastructure.
The Companies Act 1981 is the principal statute governing the incorporation and administration of companies in Bermuda. The Act draws a distinction between local and exempted companies. A local company is at least 60% beneficially owned by Bermudians and is entitled to conduct business in Bermuda, whereas exempted companies must be at least 80% beneficially owned by non-Bermudians and may be 100% foreign owned. Exempted companies are prohibited from doing business in Bermuda except to the extent that they are so authorised by their constitutional documents and have been granted a licence by the minister of finance to do so. Exempted companies may, however, freely carry on their business outside Bermuda from a principal place of business in Bermuda or with other exempted companies.
