Privacy

Economic Substance

Legislative requirements requiring entities incorporated or formed in Bermuda carrying on specific business activities to demonstrate adequate economic substance have been introduced in a number of offshore jurisdictions, including Bermuda, in connection with the European Union’s Intergovernmental Code of Conduct (Business Taxation) Group (the “Code of Conduct Group”).

The Economic Substance Act 2018 (the “ESA”) and Economic Substance Regulations 2018 as amended came into operation on 31 December 2018 (collectively known as the “ESA”).

The ESA Regulations apply to all entities seeking to incorporate or form in Bermuda with effect from 1 January 2019. Existing entities will be granted a transition period in which to comply with the new ESA Regulations.

CHW can assist you to determine whether your entity falls within the scope of the Economic Substance Regulations and to assess the impact of these regulations.

To whom does the ESA requirements apply?

Empty
Select an FAQ:

The definition of an entity under the provisions of the ESA include:

  • all companies to which the Companies Act 1981 applies, including permit companies and overseas companies;
  • all limited liability companies formed under the Limited Liability Company Act 2016; and
  • all partnerships registered under the Exempted Partnerships Act 1992, the Limited Partnership Act 1883 and the Overseas Partnerships Act 1995, which have elected to have separate legal personality under the Partnerships Act 1902.

Style Selector

Layout Style

Predefined Colors

Background Image