The Ministry of Economy and Labour is pleased to introduce the document, Bermuda's New Benefit Entity, a legal framework for public benefit entities that strengthens the island's position as an innovative and responsible business jurisdiction.

Amendments to the Companies Act 1981, the Limited Liability Company Act 2016, and the Limited Partnership Act 1883 will establish a new type of legal entity, known as a Benefit Entity, allowing for-profit businesses to incorporate public benefits into their decision-making and operations.

Benefit companies, benefit limited liability companies, and benefit limited partnerships will now be able to balance profitability with the pursuit of positive social and environmental outcomes. These outcomes may include contributions to education, health, science, the arts, sports, community development, and other areas.

Minister of Economy and Labour Jason Hayward explained, "The introduction of Benefit Entities is a milestone in Bermuda's corporate framework. It enables businesses to align their profit-making activities with broader goals that positively impact society and the environment, reinforcing Bermuda's reputation as a forward-thinking jurisdiction."

Key features of the framework include:

• Optional participation: Companies, LLCs, or partnerships may choose to become a benefit entity.

• Flexibility: Existing businesses can convert, or new ones can be formed as benefit entities.

• Public benefit focus: Entities may specify positive impacts they aim to achieve, though not required.

• Accountability: Annual statements will demonstrate how benefit entities operate responsibly and sustainably.

By providing this flexible structure, Bermuda aims to attract socially conscious companies, family offices, and investors who want to integrate sustainable business practices with financial success.

The public is encouraged to read Bermuda's New Benefit Entity document at www.gov.bm to learn more.