Companies and partnerships in Bermuda are to face the introduction of new regulatory fees in the new year owing to the changing role and responsibilities of the Registrar of Companies and its consequential need for additional funding.

The Registrar said the new fees are proposed to be effective from January 1, 2024.

It said discussions had taken place with industry representatives in 2021.

Historically an administrative body, the Registrar said, its responsibilities have expanded in alignment with the changing landscape of international business.

Bermuda has faced increased scrutiny from global regulatory bodies, including the European Union, the Organisation for Economic Co-operation and Development, the Financial Action Task Force, the Caribbean Financial Action Task Force and the International Monetary Fund.

Significant changes have arisen from that increased scrutiny, for which the Registrar has responsibility, including:

• Implementation of the Economic Substance regime, which was driven by requirements imposed on no tax or nominal tax jurisdictions by the EU and OEDC

• Enhancement of the Registrar’s AML/ATF compliance framework in the real estate and dealers in high-value-goods sectors as the competent and supervisory authority charged with their oversight

• Maintenance of Bermuda’s beneficial ownership register, which features prominently in the island’s AML/ATF and economic substance regimes

• Maintenance and operation of the treaty unit, which is responsible for the negotiation and administration of tax information exchange agreements and other related agreements, and the implementation of, and compliance with, the Common Reporting Standard and Country by Country Reporting

In an information paper, the Registrar said: “As a result of these changes, the Registrar now has regulatory, supervisory and compliance oversight of every entity on Bermuda’s company and partnership registers in addition to the predominantly administrative role previously performed.

“This in turn necessitates a complete review and restructuring of the operations of the Registrar in order to ensure that they are in a position to deliver on the disparate demands of all stakeholders and maintain a regulatory regime that will stand the rigour of international scrutiny.”

It added: “It is clear in the circumstances that steps need to be taken to increase revenue generation in order to offset the costs that will inevitably arise as a result of the evolution in the role of the Registrar from a primary registry function to a regulatory/supervisory authority needing significant numbers of new skilled personnel as well as continued investment in technology to ensure systems operate efficiently and the jurisdiction stays at the forefront of development.”

The Registrar proposes to introduce the following regulatory fees:

• Annual corporate regulatory fee — local, $150

• Annual corporate regulatory fee — non local, $500

• Annual partnership regulatory fee — local, $150

• Annual partnership regulatory fee — non-local, $500

• Filing fee for any document submitted pursuant to fulfilling a condition imposed by a company’s Section 129A/114B licence, $100

• Name reservations for companies and partnerships, $100

Introduction of the fees will require amendments to the Companies Act 1981, Limited Liability Company Act 2016, Limited Partnership Act 1883, Exempted Partnerships Act 1992, Overseas Partnerships Act 1995, Companies and Partnerships (Fees) Act 2018, and the Government Fees Regulations 1976.

The Registrar added: “The aim of the proposed amendments is to facilitate the growth and development necessary to support the expansion of the Registrar’s role, and the continued improvement of operational efficiencies.

“The principle behind these measures is the continued commitment of the Government to improve operational efficiencies in order to encourage growth, business development and investment in the future of Bermuda’s economy as we build critical new infrastructure and enhance existing systems.”