Bimetallic layered composites with ultrathin layers possess high strength and hardness, and excellent shock resistance and radiation damage tolerance. However, they are prone to deformation localization and readily form kink-bands when subjected to layer parallel compression. Following this, we carried out extensive plane strain finite element finite deformation analyses to understand and rationalize the experimentally observed kink-band formation in these composites. In the calculations, both constituent materials were assumed to follow a rate-independent isotropic elastic-plastic constitutive relation with an ad-hoc thickness dependent yield strength. Our results demonstrate that in these composites, layer refinement, together with the strength differential between the layers of the constituent materials, is sufficient to trigger kink-banding. Importantly, this phenomenon occurs even in the absence of elastically stiff layers, geometrical imperfections (such as waviness of the layers), and extreme plastic anisotropy within the layers. Additionally, we performed parametric studies to investigate the individual effects of layer thickness, strength differential between the two constituent materials, and strain-hardenability of the materials on kink-band formation. The outcomes of our parametric studies reveal that the strain-hardenability of the constituent materials stabilizes the formation of kink-bands. Furthermore, it leads to a transition from the abrupt formation of through-width kink-bands to the onset and propagation of stable inclined wedge-shaped kink-bands, similar to the experimental observations.