Establishing an Investment Business in Bermuda in 2025
Bermuda continues to strengthen its position as a global financial centre of choice for investment firms. Its well-known tax neutrality, political stability, supportive regulatory regime, and strategic geographic location offer a unique combination of advantages for firms looking to operate internationally.
This respected jurisdiction maintains its offshore financial reputation through the prudent and effective oversight of the Bermuda Monetary Authority (BMA), which plays a critical role in safeguarding the soundness and transparency of the financial system.
In this article, the SALVUS Investment Firms Licensing team outlines the process of establishing an investment business in Bermuda in 2025, along with the jurisdiction’s most current advantages and regulatory updates.
1. Why establish an Investment Firm in Bermuda
2. Governing Legal Framework
3. Licensing Criteria
4. License Categories & Investment Activities
5. How SALVUS can assist your Investment Business Application
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1. Why establish an Investment Firm in Bermuda
Bermuda continues to offer a sophisticated financial infrastructure and a transparent legal and political environment. These characteristics, combined with fiscal and regulatory efficiency, make it an attractive jurisdiction for investment firms in 2025.
Regulatory Stability: Bermuda’s regulatory framework is aligned with international standards and designed to uphold market stability and credibility. In 2025, the BMA continues to enhance its supervisory regime with a focus on operational resilience, updated outsourcing guidance, and strengthened asset-liability disclosure standards. These enhancements form part of the BMA’s broader efforts to improve transparency and risk management.
International Reputation: Bermuda remains one of the few jurisdictions to hold Solvency II equivalence with the European Union, reinforcing its adherence to global regulatory best practices. In 2025, this reputation is further strengthened by amendments to financial services legislation that expand the BMA’s supervisory scope and improve regulatory clarity across investment, insurance, and digital asset sectors.
Support for Innovation: The BMA’s 2025 Business Plan emphasises innovation, sustainability, and digital finance. Bermuda continues to welcome new financial products and services, supported by a regulatory authority equipped to respond to emerging trends. This agility creates a forward-thinking environment conducive to growth and evolution.
Tax Environment: As of 1 January 2025, Bermuda has implemented a 15% corporate income tax applicable to multinational enterprises with consolidated revenues exceeding EUR 750 million. This measure, aligned with OECD Pillar Two standards, does not affect most local investment firms or funds. Bermuda remains a tax-efficient jurisdiction, with no capital gains tax or withholding tax, preserving its appeal for cross-border investment activity.
Strategic Connectivity: Bermuda’s geographic location in the North Atlantic and its Atlantic Standard Time zone allow for seamless interaction with financial markets in Europe, the Americas, and beyond. The island’s advanced infrastructure and global connectivity support efficient international business operations.
2. Governing Legal Framework
Bermuda’s legal system is based on English common law, offering a consistent and reliable foundation for investment business operations. The principal legislation governing investment businesses is the Investment Business Act 2003 (IBA), which defines the licensing, registration, and operational requirements.
Investment businesses must also comply with Bermuda’s Anti-Money Laundering and Counter-Terrorism Financing regulations to meet domestic and international compliance standards.
Recent legislative enhancements include the Investment Business Amendment Act 2024 and the Bermuda Monetary Authority Amendment Act 2024, both of which introduce updated prudential standards and bolster the BMA’s authority to supervise licensed and registered entities. These developments enhance investor protection, corporate transparency, and regulatory scope.
3. Licensing Criteria
Entities wishing to conduct investment business in or from Bermuda must apply for a licence from the BMA, unless they qualify for registration or are considered non-registrable. The two primary types of licences are:
- Standard Licence – Allows the holder to engage in one or more regulated investment activities, subject to any conditions imposed by the BMA.
- Test Licence – Grants authorisation for a defined period, typically for firms launching new products or models. It may be extended depending on performance and compliance.
Applicants must demonstrate compliance with key criteria, including:
- All controllers and officers are fit and proper persons.
- Governance structures are appropriate to the business’s nature, size, and complexity.
- Operations are conducted prudently, with adequate capital, liquidity, recordkeeping, internal controls, and insurance.
- The undertaking is managed with integrity and professional competence.
- Group structures or affiliations do not hinder effective regulatory supervision.
4. License Categories & Investment Activities
The BMA offers several types of license categories, each tailored to different types of investment activities. These categories are:
| License Category | Investment Activities |
|---|---|
| Dealing in Investments | Buying, selling, subscribing for, or underwriting investments either as principal or agent. |
| Arranging Deals in Investments | Making or offering, or agreeing to make arrangements with a view to: i) another person buying, selling, subscribing for or underwriting a particular investment, being arrangements which bring about or would bring about the transaction in question; or ii) a person who participates in the arrangements buying, selling, subscribing for or underwriting investments. |
| Managing Investments | Managing or offering to manage assets belonging to another person, which include investments. |
| Investment Advice | Giving or offering, to give to clients or potential clients, advice on purchasing, selling, subscribing for or underwriting an investment, or exercising any right conferred by an investment to acquire, dispose of, underwrite or convert an investment. |
| Safeguarding and Administrating Investments | The safeguarding and administration (or arrangement for safeguarding and administration) of assets belonging to another party, where: i) the assets include investments as specified in paragraphs 1 to 8 of Part 1 of the First Schedule to the IBA; or ii) the arrangements for safeguarding and administering these assets are structured in a way that the assets may include investments, and the arrangements have been presented or promoted as specifically designed to safeguard and manage such investments. |
| Investment Promotion | Promoting investments to members of the public, including: i) Advertising or agreeing to advertise material or information which promotes an investment; ii) Issuing or agreeing to issue a prospectus, application for or proposal form in relation to an investment; and iii) Distributing, circulating or agreeing to distribute, circulate or make available, material relating to an investment. |
5. How SALVUS can assist your Investment Business Application
The Investment Firms Licensing team, at SALVUS provides end-to-end guidance and hands-on project management for investment business licensing in Bermuda.
Our tailored support includes:
- Assessing your investment firm’s structure and aligning it with Bermuda’s licensing framework.
- Preparing and compiling all application documents in line with BMA standards.
- Advising on compliance with capital, governance, and operational requirements.
- Managing direct communication with the BMA to ensure a streamlined process.
Whether you are launching a new venture or expanding existing operations, our team can help position your firm for long-term success in Bermuda.
Final Thoughts
Bermuda remains a premier jurisdiction for investment businesses in 2025. Its blend of regulatory integrity, tax efficiency, global connectivity, and openness to innovation offers a solid foundation for firms operating on a global scale.
At SALVUS, we are ready to guide you through Bermuda’s evolving regulatory landscape and support your licensing journey with professionalism, precision, and care.
Contact us at info@salvusfunds.com if you are interested in establishing an Investment Business in Bermuda; our Investment Firms Licensing team is ready to guide you and answer your questions.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.