| BERMUDA EXEMPTED COMPANY
General Information
Bermuda remains today the oldest colony
of the United Kingdom yet it has been self-governing with respect
to its own affairs, aside from defence and external affairs, for
over 300 years. At the same time because of its strategic location
in the North Atlantic (being much further north than is commonly
believed and considerably closer to New York and Boston than the
Caribbean) Bermuda benefits from being effectively under the US
defence umbrella.
The legal system is based on English common law, modified and supplemented
by Acts passed under the Bermuda Constitution Order, 1968. Bermuda
is governed by the locally elected House of Assembly but ultimate
authority lies with the Queen who is represented by the Governor.
With a population of close to 60,000 and a thriving tourist industry,
Bermuda enjoys communications and travel connections of a high standard.
Bermuda has attracted substantial insurance business and, after
London and New York, Bermuda enjoys the third largest premium flow
of any insurance centre.
Bermuda is of interest to Hong Kong people looking for an area
to establish an offshore company because the Hong Kong Stock Exchange
has approved the Bermuda Exempted Company for listing purposes.
The Bermuda Exempt Company
Taxation
The Exempted Company will receive an undertaking from the Minister
of Finance that the company will not be subject to any tax or duty
on profits or income capital, gains or appreciations and that no
inheritance tax or estate duty will be payable on shares debentures
or other obligations of the company. Currently the exemption extends
until 2016 but it may be further extended at a later stage.
Shareholders
A minimum of one shareholder is required and bearer shares are not
permitted. Shareholders owning a 5% or more beneficial interest
in the company are required to complete personal declarations. These
declarations are disclosed in confidence to the Bermuda Monetary
Authority only. The share register of the company is open to the
inspection by the general public but anonymity can be retained through
the use of nominees. NB- bank references must be provided on the
proposed beneficial owners of all Bermuda companies. These references
must be provided by Banks where the individual has had a personal
banking relationship for a minimum of three years.
Directors
A minimum of two directors are required and one director must ordinarily
be resident in Bermuda. Meetings of directors and shareholders may
be held outside of the Island. A register of directors and officers
must be maintained and this register is open to inspection by the
general public.
Annual Reporting
No annual return of shareholders is made although underlying beneficial
interests are disclosed to the Government at time of incorporation.
The requirement to have annual audited accounts may be dispensed
with by unanimous decision of the directors and shareholders.
Timescale
For the entire registration process, including approval of application
for exempt status, a period of 4 weeks should be allowed.
Capital
A minimum issued - as distinct from paid-up - capital of US$12,000
is required in the case of exempted companies. If the company is
not conducting insurance business there is no minimum amount for
paid-up capital.
Local Requirements
As a matter of local company law the company MUST maintain a registered
office address within Bermuda, must appoint a Bermuda resident company
secretary and must also appoint a Bermuda resident director. We
can provide all these services as part of our domiciliary service.
Registration and Maintenance Fees
Registration Fee
Our total charge for a Bermuda Exempted Company with a standard
capital structure is USD10,000, which includes first year licence
fee, registered agent, company secretary fees.
Maintenance Fee
The annual maintenance fee is USD7000. |
