Bermuda Economic Substance Requirements

The Economic Substance Act 2018 and the Economic Substance Regulations 2018 require specific types of entities that carry on relevant activities to satisfy Economic Substance requirements.

For an entity to be in scope of Economic Substance requirements, it must have carried on as a business any one or more relevant activities during the relevant financial period.

Relevant activities are: Insurance, Banking, Fund management, Financing and Leasing, Headquarters, Shipping, Intellectual property, Distribution and service centre, and Holding entity.

Entities in scopes of economic substance requirements need to demonstrate:

1. Managed and Directed in Bermuda
2. Core-income generating activities undertaken in Bermuda
3. Adequate number of suitably qualified full time employees in Bermuda
4. Adequate operating expenditure in Bermuda
5. Adequate physical presence in Bermuda

We know Economic Substance.

• We can help you prepare your annual Economic Substance Declaration.
• If you are an established entity, we can help you assess whether you meet the Economic Substance requirements and remediate any identified gaps.
• If you are looking to set up a new entity in Bermuda, we can help you set up operations such that you meet the Economic Substance requirements (e.g. people, premises, and outsourcing arrangements).