Progressive Regulation

The BMA has sole responsibility for the regulation, supervision and inspection of financial institutions operating in or from within the jurisdiction. The BMA has developed a risk-based approach when supervising these financial institutions which allows them to concentrate their resources on those firms which pose the greatest risk. The BMA uses a common, core set of supervisory tools across all sectors of the business community for purposes of risk assessment. These tools include identifying risk impact groups and prioritization, fundamental monitoring, prudential visits, risk assessment models and enhanced monitoring via on-site programs. This risk-based approach has been endorsed by the International Monetary Fund as well as a number of varied international regulatory and standard setting bodies.

Tax efficient Jurisdiction

As a tax-neutral jurisdiction, Bermuda does not tax profits, income, dividends or capital gains. Profits can be accumulated, and there is no obligation or requirement to pay dividends. In fact, Bermuda’s only corporate-related tax is in the form of payroll tax, which is paid on all employees within a company at a maximum rate of 16%. This is lower than, or equivalent to, most other competing jurisdictions. By comparison, Switzerland’s corporate tax rate currently ranges from 11.8% to 24.2%, depending on location within Switzerland, whilst Cayman which also does not tax profits, income, dividends or capital gains does however levy annual work permit fees of approximately two to three times that of Bermuda’s payroll tax. Finally, the United Kingdom charges 28% capital gains tax and 40% - 50% income tax.

Location

Bermuda is conveniently located in the Mid-Atlantic between the United States and Europe, approximately 600 miles directly east of North Carolina. Bermuda enjoys easy access to many Eastern North American cities such as New York, Boston, Atlanta, Toronto, Washington D.C., Philadelphia and Miami as well as numerous direct flights to London. Accessibility to these gateway cities makes Bermuda an ideal place for an international company to be domiciled as it is critical to be able to have those all-important face-to-face Board meetings, which allows companies to derive maximum benefit from the Island’s tax regime as well as minimizing adverse tax liabilities in the United States and the United Kingdom.

In addition, the Island’s time zone is four hours behind GMT and one hour ahead of US East Coast time which makes it a convenient location from which to conduct business with those customers, colleagues, partners and suppliers that are based abroad.

Experienced Service Providers

One of Bermuda’s strongest points is the wealth of expertise that is available from a wide range of experienced service providers that are either home-grown, or have been attracted to its shores from overseas. These high-caliber service providers which include, but are not limited to, legal, fund administration, banking, auditors, insurance and telecommunication/technology/e-commerce offer international companies the depth and breadth of highly skilled professionals needed to carry out complex business transactions on a global scale.

In addition, the Island has a legal system founded on English Law, a well-educated, literate population two-thirds of whom are of working age, and it enjoys one of the world’s highest per capita incomes. As a consequence, the Island is able to not only attract but also retain talented professionals of the highest quality.

Apex’s long term commitment to Bermuda

Bermuda was Apex’s first office nearly eight years ago and since then the Bermuda office has been the spring board for the Company’s expansion into 20 other jurisdictions around the world. This growth is very much at the heart of Apex’s philosophy of providing personalized fund administration services by being based in the same location as our clients. This enables us to build working relationships with our clients so we can properly understand their businesses, their local regulatory frameworks and help them grow their businesses.

With the regulatory system continuing to tighten, the Apex global network, which originated in Bermuda, is increasingly demonstrating its strength. Fund managers can benefit from an increasing level of risk management services as well as services that provide greater efficiencies. Two examples of these products recently launched by Apex include Apex Funds 247 and AFOS. For Bermuda to remain competitive, other service providers located in Bermuda also need to increase the range of services they provide and critically continue to invest in new technologies.

...Bermuda’s only corporate-related tax is in the form of payroll tax, which is paid on all employees within a company at a maximum rate of 16%.
This is lower than, or equivalent to, most other competing jurisdictions. By comparison, Switzerland’s corporate tax rate currently ranges from 11.8% to 24.2%, depending on location within Switzerland, whilst Cayman which also does not tax profits, income, dividends or capital gains does however levy annual work permit fees of approximately two to three times that of Bermuda’s payroll tax.

Conclusion

Bermuda’s reputation as the leading offshore business jurisdiction is a result of having the aptitude to provide business solutions in many areas of international business including; fund administration, insurance and reinsurance, banking and e-commerce. Having a sound regulatory approach and a mature business infrastructure, Bermuda has been able to distinguish itself from other competing jurisdictions as well as secure its premiere position in the eyes of the international business community. All of this allows for a streamlined process when establishing or incorporating a business on the Island