The Bermuda Exempted Company is governed by the Companies Act 1981, as amended 2006.
A Bermuda Exempted Company is prohibited from:
- Trading within Bermuda.
- Owning real estate in Bermuda.
- Undertaking the business of banking, insurance, assurance, reinsurance, fund management, collective investment schemes, rendering investment advice or any other activity which my suggest an association with the banking and insurance industries.
Bermuda does not levy any taxes on profits, income or dividends, nor is there any capital gains tax, estate duty or wealth tax.
In addition, under the Exempt Undertakings Act of 1976, an Exempted Company in Bermuda can obtain protection from any newly enacted taxes on income or capital gains until 2035.