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Bermuda remains one of the
oldest colonies of the United Kingdom. It is strategically
located in the North Atlantic, closer to the United States
than the Caribbean. Bermuda is protected under a United
States defense umbrella. The legal system is based on English
Common Law but has been modified and supplemented by acts
passed under the Bermuda Constitution Order which took place
in 1968. The government is headed by a governor, who is
appointed by the Crown of England. The success of Bermuda
as an international financial center is due to its social
and political stability, excellent communications, sound
regulatory regime, progressive legislation, and high caliber
of professionals.
Bermuda
has established itself as one of world’s leading jurisdictions
for international business. Bermuda has made great progress
developing a competitive environment for international financial
services with the development of the Bermuda Stock Exchange
(BSX). The international business community includes subsidiary
operations of more than three-quarters of the Fortune 500.
The history of Bermuda’s international business developed
out of the early successes of its insurance industry. Bermuda
has attracted substantial insurance business and boasts
the third largest premium flow of any insurance center in
the world.
There are variety of entities,
which can be incorporated in Bermuda. The most common type
of entity utilized is the exempted company. The exempt company
is popular to the people of Hong Kong as this entity was
approved by the Hong Kong Stock Exchange for listing purposes.
An exempt company may carry on business from within Bermuda
only in connection with transactions and activities external
to Bermuda. The most common business activity of exempted
companies is investment holding. The features of the exempt
company are as follows:
Taxation
The Bermuda exempted Company will receive an undertaking
from the Mister of Finance that the company will not be
subject to any tax or duty on profits or income, capital
gains, or appreciation, and that no inheritance tax or estate
duty will be payable on shares debentures or other obligations
of the company. The exemption extends until 2016 but may
be further extended at a later date.
Shareholders
A minimum of one shareholder is required and bearer shares
are not permitted. The beneficial ownership of the company
must be revealed to the Government at the time of incorporation.
Directors
A minimum of 3 directors is required and there must be sufficient
directors resident in Bermuda to allow for a quorum to be
present. Meetings of directors and of shareholders may be
held outside of the island. A register of directors and
officers must be kept at the registered office. The register
is open to inspection by the general public.
Annual
Reporting
An exempt company is not required to file a financial report
or tax return.
Local
Requirements
The local company law requires that an exempt company maintain
a registered office address within Bermuda. A minimum of
2 directors must be a resident in Bermuda.
Professionals
Professional standards are high in Bermuda. Major international
firms are represented in Bermuda.
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GUARDIAN
FINANCIAL SERVICES, INC.
6621 E. Pacific Coast Highway Suite 260
Long Beach, Ca 90803
(562) 431.1140- Fax: (562)684.4634
info@guardianfinance.com
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