Permit Company (Branch Operations)
Any body corporate incorporated outside of Bermuda (“Foreign Corporation”) which is seeking to establish a Bermuda Branch from which it can conduct a trade or business may do so by obtaining a Permit from the Minister of Finance pursuant to Section 134 of The Companies Act, 1981. Such entities are referred to in Bermuda as Permit Companies.

Permit Companies are exempt from all forms of taxation whether on income, capital gain or capital appreciation until 2016 or such further period as extended by the Minister of Finance from time to time.

Many foreign corporations have taken advantage of this type of business vehicle in Bermuda due to tax treaty or other reasons for operating their businesses outside of a particular jurisdiction.

For further information on Permit Companies, please review our Memorandum on Permit Companies in Bermuda by clicking here.