Offshore bank accounts

Bermuda company formation

 

Basic facts regarding Bermuda

Bermuda is Great Britain’s oldest overseas dependent territory with internal self-government comprising the Bermudas or Somers Islands, an archipelago of some 150 islands in the Atlantic Ocean about 570 miles east southeast of the mid-Atlantic region of the United States. It covers an area of approximately 21 square miles and has a population of 65,773 (July 2006 est.).

The Head of State is the British monarch, whose representative is the Governor, who in turn appoints as Premier the member of the House of Assembly who appears to him best able to command the confidence of a majority of the members of that House. The Governor also appoints other ministers in accordance with the advice of the Premier. The legislative branch of government is bicameral, consisting of a senate of 11 appointed members and a House of Assembly of 36 elected members. The Bermuda Constitution Order 1968 establishes the current parliamentary system and maintains Bermuda's status of internal self-government with a high degree of control over its own affairs, except for defense, internal security, and international affairs. Bermuda relies on the United Kingdom (UK) to extend to it relevant provisions, including international conventions and United Nations Security Council Resolutions (UNSCRs).

With a GDP per capita of US$76,403 (nominal terms 2005), Bermuda is one of the most prosperous countries in the world. Its economy is based primarily on international financial services and tourism.

Bermuda taxation

There are no corporate taxes in Bermuda.

Offshore business in Bermuda

Bermuda is a major offshore financial center. It is the third largest reinsurance center in the world and the second largest captive insurance domicile. According to the Registrar of Companies, at the end of September 2009, there were 13,634 exempted or international companies registered in Bermuda, 1,230 exempted partnerships, 536 overseas companies and 70 overseas partnerships. In March 2008, there were a total of 1,315 investment funds in Bermuda: 883 mutual funds, 80 umbrella funds, and 388 segregated accounts. There were also 106 unit trusts and 168 umbrella trusts.

Main features of Bermuda companies

The Companies Act allows three types of companies to be formed:
 Limited liability companies,
 Companies limited by guarantee,
 Unlimited liability companies.

The majority of international businesses are exempted companies, which means they are exempt from Bermuda laws that apply to local entities, including the restriction that at least 60 percent of local entities must be owned by Bermudan residents. An exempt company is not subject to currency controls or capital controls, and is free from all forms of direct taxation on income and capital gains. The majority of Bermuda’s exempt companies are not required to have a physical presence on the island. Local directors (generally a local lawyer and secretary) are designated to manage corporate affairs in Bermuda. Directors must be natural persons. Before exempt companies can be established or any shares transferred between nonresidents, the owners and controllers must be vetted by the Bermuda Monetary Authority (BMA), the sole regulatory body for financial services. Bermuda does not permit offshore banks or bearer shares.

Offshore banking in Bermuda

Bermuda, with only four licensed banks and one deposit-taking company, is not a significant international banking center. These financial institutionshave total assets as of June 2006 equivalent to approximately US$23 billion and US$20 billion in deposits. The four banks have 15 branches in Bermuda and the two largest banks have 33 overseas subsidiaries. There are no current statistics on off-balance sheet assets under administration, but end of 2005 data indicate the total to be about US$51.3 billion. No information with respect to non-resident deposits is collected and available. In addition, there is one credit union, with members exclusively from a local labor union.

International cooperation

Bermuda has executed Tax Information Exchange Agreements with Aruba, Australia, Canada, China, Denmark, Faroe Islands, Finland, Germany, France, Greenland, Iceland, India, Ireland, Japan, Mexico, Netherlands, Netherlands Antilles, New Zealand, Norway, Portugal, Sweden, United Kingdom.

[sources: United States Department of State Bureau for International Narcotics and Law Enforcement Affairs; Caribbean Financial Action Task Force; Organisation for Economic Co-operation and Development]

 

Bank accounts

Open a Swiss bank account | Open a bank account in Austria | Open a bank account in Luxembourg | Open a bank account in Liechtenstein