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Bermuda News Weather Property Rentals Jobs Reviews Social
November 21, 2017
Tax Free Bermuda | Exempt Companies/International Business Companies | Bermuda - An Executive Summary | ASSET PROTECTION TRUSTS | Offshore Trusts | A Very Simple Introduction to Trusts | Immigrant Trusts | Firm Information | Our other Websites | Contact Information |

Bermuda - An Executive Summary


Summary:

* No Income Taxes on Individuals or Corporations, Whether Resident or Nonresident

* Protection Available from Forced Inheritance Claims, Family Law Claims and Certain Other Creditor Claims

* Modern Trust and Companies Legislation Corporate Legislation Allows for an Exempted Company, Which Is Similar to an International Business Company in That Such a Company May Not:
- Have More than 20% Bermudian Ownership
- Compete with Local Businesses

Exempt Company Pays an Annual Fee, but Is Exempt from All Other Taxes and Stamp Duties for a Period of 20 Years from the Date of Incorporation

* Regulatory Environment Allows and Encourages Captive Insurance Companies (ie. insurance companies that write captive or restricted risks). It is common for Canadians to use Bermuda as one of the jurisdictions for the creation of Captive Insurance companies. Visit www.insurance-captives.com for a more detailed discussion.

* Cost of Incorporating in Bermuda Is Somewhat Higher than in Other Jurisdictions in the Region

* Pioneer Jurisdiction with Respect to Legislation to Allow Trusts to Be Established for One or More Purposes for Which There Are No Individual Beneficiaries - Differs from Traditional Trust Principles Which Only Allow Trusts for Which There Are No Individual Beneficiaries to Be Established for Charitable Purposes.

Detailed Discussion:

Bermuda is perhaps the most recognized of the tax havens. Typically services are provided to the upper end of the financial services market. Bermuda is not part of the Caribbean island tax havens, being located further north just off the U.S. Coast. Unlike many other islands, Bermuda does not have the less savory areas found in poorer countries. Bermuda boasts one of the highest standards of living in the world.

The government of Bermuda has taken many steps to protect their country and its people from the adverse effects of increased tourism and offshore financial business. This tradition is readily apparent in the restrictions on the number and size of automobiles (finding its origins in the lobbying efforts of Mark Twain to prevent the introduction of automobiles to the island). More relevant legislative protections can be found in the restrictions on obtaining citizenship and property ownership.

The Exempt Company is exempt from tax. These companies are generally not permitted to own an interest in local land or companies, or carry on business with Bermudians except in furtherance of their overseas business. The minimum share capital is $12,000. Three shareholders are required and the shareholders registered is open to inspection by the public, but permit the use of nominee shareholders is permitted. The registrar of directors and officers is also available for public inspection. There is a minimal requirement of two local directors.

Exempted Company cannot carry on offshore banking businesses, but Offshore Insurance is encouraged. More than 6,000 Exempted Companies are now in existence, of which approximately 20 per cent are registered to do insurance business. The concept of the offshore "captive" insurance company was first put into practice on a significant scale in Bermuda.