Setting up a private trust company in Bermuda

In Bermuda, according to the company law of 198 1, a private trust company can be established in the form of a company limited by shares or a company limited by guarantee. Bermuda law distinguishes between "local" companies (mainly owned by Bermudians) and "exempted" companies (mainly owned by non-Bermudians). Generally speaking, except in special circumstances, exempted companies can only conduct business related to transactions and activities outside Bermuda from within Bermuda. If the principal is not a permanent resident of Bermuda when the relevant trust is established, the private trust company can operate entirely in Bermuda.

The establishment of all Bermuda tax-free companies must be approved by the Bermuda Monetary Authority. Bermuda law requires disclosure of the identity of the ultimate beneficial owner. All the ultimate beneficial owners who hold not less than five percent (5%) of the shares of the proposed private trust company must sign a personal declaration to prove their good reputation and good reputation in other Bermuda enterprises. If the company is held by the purpose trust (which is very common), the trustee of the trust must make the above statement.

Private trust companies can use the words "trust" or "trustee" in the company name. A private trust company shall submit a letter to BMA within 3 months from the date of its establishment to confirm its exemption qualification and explain in detail the nature and scope of its trust business.