Permit Companies: An Alternative To Incorporation

The traditional, and the most frequently used, method for an overseas company to establish a presence in Bermuda is to do so by incorporating a Bermuda subsidiary.

There is, however, an alternative.

Generally, as a matter of Bermuda law, an overseas company -- which means a body corporate incorporated outside Bermuda -- shall not engage in or carry on any trade or business in Bermuda. 

However, in some circumstances, it is possible for an overseas company to trade in or from within Bermuda, provided it obtains a permit (Permit) issued by the Minister of Finance (Minister) under the Companies Act 1981, as amended (Act).

As such, often overseas companies will apply for a Permit where it is not necessary or expedient to establish a new Bermuda company.