Nov 2026
Bermuda is a leading jurisdiction for international shipping businesses, offering a combination of sophisticated corporate law, tax neutrality, political stability and a highly regarded ship registry. For decades, shipowners, operators, financiers and investors have used Bermuda structures to own and finance vessels, access international capital markets and support global maritime operations.
Whether you are considering incorporating a vessel-owning company, registering a vessel under the Bermuda flag, obtaining financing, or evaluating Bermuda alongside other offshore jurisdictions, understanding the legal and commercial landscape is essential.
This FAQ addresses some of the most common questions about establishing and operating a Bermuda shipping company, vessel registration, ship finance, tax considerations and key legal and regulatory requirements.
1. Why do shipping companies choose Bermuda?
Bermuda offers an established legal system, flexible company structures and an internationally recognised ship registry. The jurisdiction’s corporate law is based on English common law, which offers familiarity and predictability for owners, lenders and counterparties worldwide. The Companies Act 1981 gives real flexibility when structuring vessel-owning special purpose vehicles (SPVs): simple share capital arrangements, minimal director requirements, and a memorandum of association that can be tailored to the commercial deal.
2. How quickly can a Bermuda shipping company be incorporated?
A Bermuda exempted company can generally be incorporated within a few days, subject to the required information, approvals and due diligence. There is no need to hold board meetings in Bermuda, however the company must maintain a registered office in Bermuda and comply with its ongoing corporate, beneficial ownership and regulatory obligations.
3. Is Bermuda a reputable and well-regulated jurisdiction?
Yes. Bermuda is not a secrecy jurisdiction. It is regulated by the Bermuda Monetary Authority (BMA) and meets international standards on anti-money laundering, beneficial ownership transparency and tax information exchange. Bermuda appears on the EU’s list of cooperative jurisdictions and is OECD-compliant — which matters to international banks, charterers and counterparties who increasingly scrutinise jurisdictional risk.
4. How is Bermuda’s tax framework relevant to shipping companies?
Bermuda levies no income tax, capital gains tax, withholding tax or corporate tax. The corporate income tax that was introduced on 1 January 2025 only applies to entities within the scope of the regime. Qualifying international shipping income may be excluded from taxable income. The exclusion can cover income from specified international shipping activities and up to 50% of certain qualifying ancillary shipping income, provided the strategic or commercial management of the relevant ships is effectively carried on from or within Bermuda. Shipping companies should obtain advice on whether the tax regime and exclusion apply to their particular structure and activities.
5. Can a Bermuda company access international capital markets?
Yes. Bermuda companies are widely accepted for listing on the New York Stock Exchange, NASDAQ, the Euronext Oslo Børs, the London Stock Exchange and the Hong Kong Stock Exchange. Several of the world’s largest listed shipping groups are incorporated in Bermuda, giving owners a credible platform for IPOs, bond issuances and other capital-raising transactions.
6. What vessels can be registered in Bermuda and what flag do they fly?
Bermuda can register a broad range of vessels, subject to eligibility and registry requirements, and Bermuda-registered ships fly the Red Ensign. As a British Overseas Territory, Bermuda-registered ships fly the Red Ensign, one of the most respected flags in international shipping. As a Category 1 member of the Red Ensign Group, Bermuda can register vessels of unlimited tonnage and type. The Red Ensign carries strong credibility with port state control authorities, charterers, insurers and financiers worldwide.
7. Which international maritime standards apply to Bermuda-registered vessels?
Bermuda applies key international maritime conventions extended through the United Kingdom, including SOLAS, MARPOL, STCW, the MLC 2006 and the ISM and ISPS Codes. Owners can be confident a Bermuda-flagged vessel meets the standards expected by major charterers, terminals and financiers.
8. Can ship mortgages be registered in Bermuda?
Yes. The Bermuda Merchant Shipping Act provides for the registration of ship mortgages, with clear rules on priority and a defined enforcement regime. Bermuda-registered mortgages are widely recognised and accepted by international lenders, and the regime is regarded as robust and bankable by leading shipping banks and export credit agencies.
9. Are there crew nationality restrictions or bareboat charter registration options?
Bermuda does not generally impose crew nationality restrictions. Owners can crew vessels according to commercial needs and the requirements of the MLC 2006. Bermuda also permits parallel-in and parallel-out bareboat charter registration, subject to the requirements of the relevant registries and transactions.
10. How does the Bermuda Ship Registry compare with other registries?
Shipowners have a range of international registries to choose from, each offering different advantages depending on the vessel, ownership structure and commercial requirements. Bermuda distinguishes itself through its status as a British Red Ensign jurisdiction, deeper pool of local maritime expertise and ability to combine vessel registration with sophisticated corporate structuring in the same jurisdiction.
How Conyers Can Help
Conyers is Bermuda’s leading offshore law firm, advising shipowners, operators, lenders and investors on all aspects of Bermuda shipping and maritime law. Our Bermuda Shipping team regularly advises on company incorporations, vessel acquisitions, structured financings, capital markets transactions and complex cross-border shipping structures.
Whether you are establishing a new shipping company, financing a fleet expansion or evaluating Bermuda as a jurisdiction for vessel ownership or registration, our team can help you navigate the legal, regulatory and transactional considerations involved.
Contact Conyers’ Shipping Practice to discuss your shipping, ship finance or vessel registration requirements: Shipping Finance Law | Conyers