Bermuda Background

Bermuda is the favoured location for companies wishing to list on the stock exchange and is of special interest to Hong Kong businessmen wishing to establish an offshore company: the Hong Kong Stock Exchange has approved Bermuda Exempted Companies for listing purposes.

Introduction

Bermuda is a group of about 150 small coral islands in the North West Atlantic. Its area is 53.3 sq. km. The population of Bermuda is about 60,000 and is made up primarily of people of European and African origin. Bermuda enjoys one of the highest per capita incomes in the world, though its only natural resource is limestone. Bermuda successfully exploits its location by providing luxury tourist facilities and financial services.

The official and spoken language is English.

Law and Taxation

English Common Law with local modifications.

Whilst there is no requirement to file annual audited accounts with the authorities, a company is required to keep financial records, which reflect the financial position of the company.

Corporate Requirements

There must always be sufficient directors resident in Bermuda to form a quorum in Bermuda. Directors who are not resident in Bermuda may be appointed. The directors must appoint a president and vice-president as officers, who need not necessarily be directors.

The following words cannot be used in company names either in English or any other language: Bank, Building Society, Savings, Loans, Trust, Insurance, Assurance, Reinsurance, Fund Management, Investment Fund, Fiduciary and Broker.

A company name must end with the suffix Limited or Ltd. to denote limited liability.

Local Infrastructure

The Islands have attracted substantial insurance business and, after London and New York, Bermuda has become the third largest insurance centre.