Bermuda Offshore Guide
Bermuda or The Bermuda Islands is actually composed of 138 islands located in the North Atlantic Ocean. It is a British overseas territory, and is the oldest and the most populous among the territories. Bermuda is economically rich, fuelled by the large financial sector and tourism industries. It posted the world’s highest GDP per capita in 2005. Of late, international business has overtaken tourism, and transformed Bermuda into a highly successful financial center. Because of its economic and political stability, it continues to maintain a favorable environment for business. Its offshore industry is backed by modern business laws and its well-developed professional pool of experts.
It offers significant advantages to Exempt Companies by virtue of Companies Act of 1981. As such, it is free from currency controls or capital controls and to top it all, an Exempt Company does not need to pay all forms of taxation. This tax exemption benefit might be availed of until 2016 or beyond upon further review.
Many Bermuda Exempt companies have had the advantage of these cost-saving measures. With the recent amendments to the Companies Act of 1981, a more simplified procedure for incorporation, they have played an important role within the modern business and financial community.
The corporate package includes the Certificate of Incorporation with Memorandum and Articles of association, Appointment of the First Director, Registered Office service to December following incorporation, Registered agent service to December following incorporation, shares certificates and Corporate seal.
The incorporation Fee includes: US$4049.00 incorporation fee, US$2080.00 government fees, US$1700.00 Registered office fees, and a free Registered agents fee with a total of US$7829.00 cost of incorporation.
What makes Bermuda attractive is its being near to the US, plus its advantage of being an English speaking country. These are backed by a very efficient support service and the existence of modern banking. The internet industry is also considered as a strong additional support, more so in the present times.
There are some laws pertaining to IBC that are not applicable in Bermuda as in other countries. However, Bermuda compensates this by exempting companies from the 60% local capitalization law. This law provides that companies in the country should have 60% of the capital owned by local residents. With this, exempt companies maintain accounts of foreign currency and conduct their business outside the country.
With the implementation of "The Companies Amendment Act" of 1996, the concept of an exempt company started. According to the law, there must be a minimum of two local residents who should sit as directors. It could be the President and the Secretary of the company or other possible combinations. Companies under this category may have to pay higher incorporation fees.
Many insurance and mutual fund companies find Bermuda as an ideal business site. This is because of the attractive well-regulated banking and investment environment. These two business sectors have grown so rapidly that in just a few years they have grown threefold. Bermuda is now known in the business sector as an "insurance" or "investment" authority.