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BACKGROUND
Geographical Location
Bermuda consists of about 360 small coral islands with ample rainfall, but no rivers or freshwater lakes; some
land, reclaimed and otherwise, was leased by US Government from 1941 to 1995. The Bermuda are situated in the North
America Ocean, east of North Carolina (US), and is not, as believed, part of the Caribbean. It enjoys a sub-tropical
climate, and its terrain consists of low hills separated by fertile depressions. Bermuda has no rivers or fresh
water lakes.
Climate: subtropical; mild, humid; gales, strong winds common in winter.
Population: 62,472 (July 1999 est.).
Political Structure
Bermuda is a dependent territory of the United Kingdom, with Queen Elizabeth II as Chief of State, who is represented
by a Governor appointed by the British Government.
Religions: Anglican 28%, Roman Catholic 15%, African Methodist Episcopal (Zion) 12%, Seventh-Day Adventist
6%, Methodist 5%, other 34% (1991)
Infrastructure and Economy
Although its only natural resource is limestone, Bermuda enjoys one of the highest per capital incomes in
the world. This is due to it having successfully exploited its location by providing luxury tourist facilities
and financial services. The tourist industry attracts more than 90% of its business from North America. The Industrial
sector is small, and agriculture is severely Limited by the lack of land. 80% of all food need are imported.
Language
English (official), Portuguese
Currency
Bermuda Dollar, which is on par with the United States Dollar.
Exchange Control
Yes, but an Exempt Company is classified as being non-resident and is therefore exempted from the Exchange
Control provisions. However, an Exempt Company cannot use local currency, other than for the purposes of paying
local expenses.
Type of Law
Common Law based on the English system.
Principal Corporate Legislation
The Companies Act 1981
KEY FEATURES TABLE
| General |
| Political Stability |
Good |
| British Based Legal System |
Yes |
| Type of Company |
Exempt |
| Disclosure of Beneficial Owner |
Yes |
| Migration of Domicile Permitted |
Yes |
| Tax on Offshore Profits |
Nil |
| Non-English Language Names Allowed |
Yes |
| Corporate Requirements |
| Minimum Number of Shareholders |
One |
| Minimum Number of Directors |
Two |
| Bearer Shares Allowed |
No |
| Corporate Directors Permitted |
No |
| Secretary Required |
Yes |
| Standard Authorised Share Capital |
BD$12,000 |
| Local Requirements |
| Registered Office/Agent |
Yes |
| Company Secretary |
Yes |
| Local Directors |
Yes - Two |
| Local Meetings |
Yes |
| Government Register of Directors |
No |
| Government Register of Shareholders |
Yes |
| Annual Requirements |
| Annual Return |
No |
| Audited Accounts |
No |
| Recurring Government Costs |
| Annual Tax/Licence Fee |
BD$1,860 |
| Annual Return Filing Fee |
Nil |
COMPANY FORMATION
Type of Company for International Trade and Investment
Exempt Companies. All other Companies incorporated in Bermuda must be at least 60% owned by Bermuda
residents.
Procedure to Incorporate
Application for consent to incorporate is made to the Bermuda Monetary Authority, accompanied by a Bank
Reference on the ultimate beneficial owner. Once consent has been granted, the Memorandum of Association and the
Consent are lodged at the Registry.
Restrictions on Trading
Cannot trade in Bermuda, but can carry on overseas business from Bermuda. Cannot hold Bermuda currency,
other than to pay local expenses
Powers of Company
A Company incorporated in Bermuda has all the powers of a natural person.
Language of legislation and
corporate documents
English
Shelf Companies available
No
Time Scale to Incorporate
Three Weeks
Name Restrictions
Names that are identical to or similar enough to create confusion, or names that imply royal or Government
patronage.
Language of Name
Can be in any Language using the Latin alphabet.
Names requiring Consent or a Licence
"Bank", "Trust", "Fiduciary", "Broker",
Suffixes to denote Limited Liability
Limited or Ltd.
Disclosure of Beneficial Ownership to Authorities
Yes, but very strict secrecy laws prevents the information from being public knowledge.
SHARE CAPITAL, TAXATION, LICENCE FEES AND COMPLIANCE MATTERS
Authorised Share Capital
$12,000
Classes of Shares Permitted
- Registered Shares
- Preference Shares
- Redeemable Shares
- Shares with or without voting rights
Bearer Shares Permitted
No
Taxation
None
Double Taxation Agreements
Bermuda is not a party to any Double Taxation Agreements.
Licence Fees
A company with an Authorised Capital up to $12,000 pays the sum of $1,680 per annum.
Financial Statement Requirements
Although there is no requirement to file financial statements, the financial records of the company
must be maintained at the Registered Office.
STRUCTURE OF MANAGEMENT
DIRECTORS
Minimum number of Directors
Two. Must have sufficient resident directors to form a quorum to hold meetings locally.
COMPANY SECRETARY
Company Secretary Required
Yes
SHAREHOLDERS
Minimum number of Shareholders
One
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