Registered Local Companies in Bermuda fall to 4½-year Low

  • Bermuda’s registered business base contracted in the first half of 2026 (Q1 2026), with total registrations falling by 1,168, or 7.2%, year-on-year (YoY) to 15,122. This marks the third consecutive quarterly decline. The contraction was broad-based, with local companies falling by 442, or 10.1%, to 3,660, their lowest level since Q3 2021, while exempted companies declined by 89 to 9,702, below 10,000 for the first time in at least six years in the fourth quarter of 2025.
  • The decline in international business registrations comes as Bermuda’s corporate tax regime took effect. From January 2025, Bermuda introduced a 15% Corporate Income Tax (CIT) on in-scope multinational enterprise groups with annual global revenues of at least €750Mn, aligning the jurisdiction with the Organisation for Economic Co-operation and Development’s (OECD’s) Global Minimum Tax framework1.
  • The timing raises questions about the island’s attractiveness as an international business domicile, particularly for entities with limited economic substance in Bermuda. The OECD-led tax reforms reduce the benefit of booking profits in low-tax jurisdictions without corresponding local operations, potentially contributing to the continued decline in registered companies. However, the available data do not establish that the CIT is the sole driver of the contraction.
  • For Bermuda, the trend highlights the importance of maintaining competitiveness while adapting to the global shift toward greater tax transparency. The Government’s 2023–2027 Economic Development Strategy explicitly prioritises the retention and expansion of local and international businesses, attracting investment and strengthening entrepreneurship as part of efforts to diversify the economy.
  • The sustained decline in registrations could therefore have implications beyond the corporate sector, including government revenues, employment and demand for professional and financial services. While the new CIT is expected to generate meaningful government revenue from 2026 onwards, Bermuda will need to balance these fiscal gains against the potential loss of business activity as international firms reassess their domiciliations.

(Sources: The Royal Gazette & Government of Bermuda)