Bermuda Offshore Company

Bermuda is one of the oldest colonies of the United Kingdom. It is located in the North Atlantic quite close to the United States of America. Bermuda is a group of 138 islands located in the North Atlantic Ocean. It is a British Overseas territory, and is economically very rich as a result of its earnings from its financial sector and tourism industries. Bermuda is protected under a United States defense umbrella. Their legal system which is originally based on English Common Law has been modified through acts passed under the Bermuda Constitutional Order in 1968. This is the reason that has prompted many people to form a Bermuda Offshore Company.

The government of Bermuda is headed by the Governor who is appointed by the Crown of England. Bermuda has earned a name as an international financial center as a result of its social and political stability, excellent communication system, and good legislation. The high competence of its professionals has also contributed to its success. Bermuda has become famous as one of the world’s leading areas for international business. Bermuda’s international business has developed as a result of the success of its insurance industry. Bermuda has created a competitive environment after the development of the Bermuda Stock Exchange.

Bermuda does not have the same type of legislation applicable to International Business Companies as commonly found in offshore legislations. The distinguishing factor of Bermuda is that it only permits ‘exempt’ companies. Such a company is an exception to the rule that 60% of the company owners should be Bermuda citizens. But, the legislation does state that a minimum of two local residents must act as its directors. Today, you will find that there are more than 13,000 exempt companies registered in Bermuda. Unfortunately, there is no element of confidentiality regarding information of the company, nor are there any formal banking secrecy laws in existence here.

The following advantages are available when you form a Bermuda Offshore Company:

• Taxation: The Bermuda Tax Exempt company receives an undertaking from the Minister of Finance that the company will not be taxed on profits or income capital, and no inheritance tax or estate duty will be collected on shares or debentures or other financial obligations of the company.
• Shareholders: There is a requirement of a minimum of one shareholder, and bearer shares are not permitted. The details of ownership of the company must be informed to the authorities, and this information will be held in confidence.
• Directors: There must be a minimum of 3 directors, and the meetings of directors or shareholders may be held outside the island. A Register of Directors and Officers must be maintained.
• Annual Reporting: An exempt company is not required to file a financial report or tax return.
• Capital: A minimum issued capital of US$ 12,000 is required in the case of a Bermuda Offshore company. If the company does not conduct any insurance business, there is no minimum amount for paid-up capital.
• Local Requirements: The local company law requires that a company should maintain a registered office address in Bermuda, and a minimum of two directors must be residents of Bermuda.

What makes Bermuda exceptionally attractive is the fact that it is an English speaking country and located quite close to the United States. Existence of efficient support services and an excellent banking system has earned it both name and fame by making the area conducive for promoting a Bermuda Offshore company.