Bermuda's Business & Economy Index

Page 1 of 5

125+ web files in a constantly updated Gazetteer on Bermuda's accommodation, activities, airlines, apartments, areas, art, artists, attractions, airport, aviation pioneers, banks, banking, beaches, Bermuda Status and citizenship, books and publications, British Army, businesses, calypso, Canadian military, causeway, churches, city of Hamilton, commerce, community, cruise ships, culture, cuisine, customs, Devonshire Parish, disability accessibility, districts, Dockyard, economy, education, employers, employment, entertainment, environment, executorships and estates, fauna, ferries, flora, food, forts, gardens, geography, getting around, golf, government, guest houses, history, Hamilton Parish, homes and housing, hotels, internet access, islands, laws and legal system, local groups and organizations, location, media, motor vehicle options, music, municipalities, Paget Parish, parishes, parks, Pembroke Parish, politics, postage stamps, public holidays, public transport, railway trail, religions, Royal Navy, Sandy's Parish, St. David's, St. George's Parish, shopping, Smith's Parish, Somerset, Southampton Parish, Spanish Point, Spittal Pond, sports, stores, telecommunications, traditions, time zone, town of St. George, United States armed forces, tourism, vacation planning, villages, vital statistics, water sports, weather, Warwick Parish, wildlife, work permits, etc. For tourists, business visitors, employers, employees, newcomers, researchers, retirees, scholars.

Bermuda's Business & Economy Index

Local laws governing companies, corporations and their Annual or other registrations
By Keith Archibald Forbes (see About Us) at e-mail exclusively for Bermuda Online
To refer to this web file, please use "bermuda-online.org/business.htm" as your Subject

Bermuda's Horseshoe Bay

All Bermuda Listed Securities

Information from the Bermuda Stock Exchange

Applicable Bermuda (not UK) laws include

Laws of Bermuda
Business laws enacted in Bermuda by the Bermuda legislature include: Anti-Terrorism (Financial and Other Measures) Amendment Act 2009 Banks and Deposit Companies Act 1999 Bermuda Commodities Exchange Act 1996 Bermuda Commodities Exchange Clearing House Act 1996 Bermuda Monetary Authority Amendment 2012. Changed insurance company fees, clarifies the Authoritys fees for Bermuda insurance companies introduced in 2012 and recognizes the need to be flexible and responsive during the present economic climate.

http://www.bermuda-online.org/business.htm

26.11.2012

Bermuda's Business & Economy Index

Page 2 of 5

Bermuda Monetary Authority (Collective Investment Scheme Classification) Regulations 1998 Bermuda Monetary Authority (Financial Institutions) (Control) Regulations 1994 Bermuda Monetary Authority Act 1969 Bermuda Monetary Authority Act 2006. It tightens up financial procedures on the Island and make it easier for whistleblowers to expose wrongdoing. Bermuda Solvency Capital Requirement (BSCR), an enhanced solvency regime applicable to Bermuda's Class 4 re/insurers. Bermuda Stock Exchange Company Act 1992 BIU Members Credit Union Co Op Society Act 1983 Commission on Racial Equality (CURE). See Bermuda Government Boards. Melbourne House, Suite 202. 11 Parliament Street, Hamilton HM KX. Telephone (441) 296-0613 or fax (441) 296-9142 or e-mail cure@ibl.bm. In other countries, these racial guidelines and regulations apply only in the public sector. But the Bermuda Government has made them apply in the private sector as well. Companies Act 1981. The principal statute governing the formation and operation of Bermuda companies. Companies Amendment Act 2009. Companies Amendment (No 2) Act 2011. Includes a raft of measures which will have a significant impact on Bermudas international business sector. Outlines a number of changes to the Companies Act 1981, tabled by the Ministry of Business Development and Tourism. Among the key changes are the permitting of sole and corporate directors of Bermuda companies, the option to waive annual general meetings and the removal of prohibitions on providing financial assistance. Other amendments include the use of paperless share transfers for listed companies, the ability for Bermuda companies to declare dividends or distributions when recording a profit, notwithstanding that the company may carry a negative retained earnings balance, and the addition of a new process for mergers as an alternative to the existing amalgamations procedure. Credit Unions Act 1982 Court of Appeal Amendment Act 2004 Regulatory Authority Act 2011 Electronic Transactions Act 1999 Exchange Control Act 1972 Exchange Control Regulations 1973 Exempted Partnerships Act 1992 Exempted Partnership Amendment Act 2009 Exempted Undertakings Tax Protection Amendment Act 2011, which extends a guarantee that the Bermuda Government will not charge exempt companies any taxes on profits, income or capital gains. The amendment prolongs that guarantee until 2035. While Premier Cox said the Government had no intention of starting taxation based on profit, income or capital gains, she said the amendment was meant to reassure businesses and make them more comfortable investing in the Island. She said that extending the agreement had always been on the Government agenda, but had been put off in the past because of international concerns that the exception could lead to harmful business practices, favoring international businesses over local. Insurance Act 1978 Insurance Amendment Act 2008. Insurance Returns & Solvency Amendment Regulations 2005 Interest and Credit Charges (Regulation) Act 1975 Investment Business Act 1998 Investment Business Regulations 1999 Investment Funds Act 2006. Licensing requirements of fund managers, codes and enforcement powers. Also makes it easier to register and license funds by eliminating unnecessary administrative procedures. Limited Partnership Amendment Act 2009 Merchant Shipping (ILO) Amendment Act, 2012. Occupational Safety & Health Amendment Act 2005 Overseas Partnership Amendment Act 2009 Partnership Amendment Act 2009 Payroll Tax Rates Amendment Act, as announced in the 2011-2012 Budget, In February 2011, this was announced and later legislated to reduce payroll tax from 16 percent to 14 percent. Premier Paula Cox said that the rollback would put $50 million back into the economy, but the act will benefit employers more than employees. Perpetuities and Accumulations Act 2009. Modernizes trust laws and helps remove some of the complications which might have stopped wealthy families looking at a jurisdiction to put a trust, from considering Bermuda. Proceeds of Crime Act 1997 Proceeds of Crime (Money Laundering) Regulations 1998 Regulatory Authority Act 2011 Specified Business Legislation Amendment Act 2011. Tightens access and exchange of information. Seeks to amend various pieces of specified business legislation to ensure consistency, transparency, and compliance with international tax information exchange standards, recommended by the Organization for Economic Cooperation and Development. Stamp Duties Amendment Act 2009 Trusts (Regulation of Trust Business) Act 2001

Companies Annual Fees due in January and March each year

As published in a mid-January edition of Bermuda's The Royal Gazette daily newspaper. These are upfront fees, paid irrespective of whether companies are successes or failures, with no refunds applicable in the event of liquidations and with no tax rebates of any kind. They are in addition to other tax obligations applicable to employers. This is not a substitute, merely a summary, with their responsibility entirely to comply with the right procedure, for companies under The Companies Act 1981; Companies Amendment (No. 2) Act 1990; The Companies Act 1981 (Fifth Schedule) Amendment Order 1994; The Banks and Deposit Companies (Fees) Act 1975; Insurance Act 1978; Non-Resident Insurance Undertaking Act; Exempted Partnerships Act 1992; Overseas Partnerships Act 1995; Trust Companies Act 1981; and Segregated Accounts Companies Act 2000 and its Amendment Act 2002. Companies should check to see what fees apply from April 1 annually - the start of the new accounting year for the Bermuda Government. Every company should use its registration number on all correspondence with the Bermuda Government and when making any purchases. Every company must notify the Registrar of Companies, at the Government Administration Building, 30 Parliament Street, Hamilton HM 12, Bermuda, of its registered office, which cannot be a post office box, on Form 13. General Notes re paying fees (i) All cheques (checks) for fees are payable to the Accountant General but are given or sent or delivered, with Returns, to the Registrar of Companies, Government Administration Building, 30 Parliament Street, Hamilton HM 12.

http://www.bermuda-online.org/business.htm

26.11.2012

Bermuda's Business & Economy Index

Page 3 of 5

(ii) All US$ cheques (checks) will be accepted at par with the Bermuda Dollar from companies denominated as Non-Resident under the Exchange Control Act. (iii). Every company must notify the Registrar of the whereabouts and situation of its registered office (which shall not be a post office box) on Form 13. (iv) Every company should use its registration number.

Warwick Long Bay

Exempted or international companies

In other words, not locally owned or majority locally owned. Every company shall, in the month of January, forward to the Registrar of Companies a declaration signed on behalf of the company as to the company's principal business and its assessable capital, together with the appropriate fee payable. Fees submitted after the due date carry a penalty. Fifth Schedule. Where the assessable capital of the exempted company is as follows, specific fees apply: (i) $0-12,000 (ii) $12,001-$120,000 (iii) $120,001-$1,200,000 (iv) $1,200,001-$12,000,000 (v) $12,000,000-$100,000,000 (vi) $100,100,001-$500,000,000 (vii) $500,000,000 or more Assessable capital shall be calculated in accordance with the provisions of the Companies Amendment (No. 2) Act. 1-2. Where the exempted company has been designated as a Foreign Sales Corporation (FSC) under the Internal Revenue Code of the USA: And has submitted to the Registrar a certified copy of the document which evidences such designation, specific fees apply: (i) Small FSC which does not lease aircraft (ii) Regular FSC which does not lease aircraft (iii) FSC small or regular which leases aircraft

http://www.bermuda-online.org/business.htm

26.11.2012

Bermuda's Business & Economy Index

Page 4 of 5

Overseas (Permit) Companies

Specific fees apply: 2 (i) Where the principal business of the permit company is finance business or insurance business, or in the case of a permit company which is open ended, mutual fund business. In any other case.

Local Companies
Excludes banks & deposit companies, treated separately. They are those which are at least 60 percent locally owned and trade locally with Bermudians and other residents. Every local company must in the month of March forward to the Minister of Finance a Return of Shareholdings in the company as at December 31, on Form 14, signed by two directors. Every local company shall not later than March 31 submit to the Registrar of Companies the appropriate fee, with the Annual Return and fee and a filing fee of $34 for the Return. Late fees and Returns carry a penalty of $150. Specific fees apply where the issued capital is: Less than $50,000 50,000 or more but less than $250,000 $250,000 or more but less than $500,000 $500,000 or more but less than $1 million $1 million or more but less than $5 million $5 million or more but less than $ 10 million $ 10 million or more

Exempted & Overseas Companies

When the company engages in or is carrying on in Bermuda or trading in petroleum or and other oils or liquefied petroleum gas, specific fees apply: Local company Exempted company Overseas company When the company's business includes the management of any unit trust scheme, in respect of each unit trust scheme managed by the company at the date of the declarations. Plus any other applicable fees. Exempted Partnerships Under the Limited Partnerships Act 1883 (as amended) and Exempted Partnerships Act 1992 (as amended). A notice is published in the Official Gazette by the attorney for the applicant when an exempted limited partnership is formed. It shows by whom and gives its name. An exempted partnership shall, on or before 31st January each year send to the Registrar of Companies a declaration in writing signed by a partner or an authorized person on behalf of the partnership stating the general nature of the business transacted by the exempted partnership, together with the annual fee. Every partner shall be liable to a penalty per day if the partnership fails to pay the annual fee on time and fails to file a declaration. Overseas Partnerships Every overseas partnership shall no later than 31st January submit its fee to the Registrar. Fees submitted after the due date carry an additional sum and a default fine. Non-Resident Insurance Undertakings (NRIU) Every Non-Resident Insurance Undertaking shall no later than 31st March submit its fee to the Registrar. Fees submitted after the due date carry an additional sum and a penalty.

Import tariffs (Revised Bermuda Customs Tariff Code)

The Customs Tariff Amendment Act applies. It is a 540-page list of special codes for every imaginable type of imported product and it provides for Customs Officers the rate of Customs or import duty on the item. The revised code consists of up to seven digits in heading and tariff code fields and a detailed description of the item to be imported or exported. It also includes the unit to be used for calculating the duty, whether the value of the item or its quantity or weight. Some items, like alcohol, are calculated by the liter. Some other items, like cigarettes, are calculated by the cigarette.

Insurance Companies Business Fees

Insurance companies registered in accordance with the provisions of The Insurance Act 1978 shall forward the appropriate annual business fee applicable to each category on or before March 31. (a) (i) Non-resident Insurance Undertaking (ii) Class 1 Insurer carrying on general business (iii) Class 2 Insurer carrying on general business (iv) Class 3 Insurer carrying on general business

http://www.bermuda-online.org/business.htm

26.11.2012

Bermuda's Business & Economy Index

Page 5 of 5

(v) Class 4 Insurer carrying on general business (vi) Long Term Insurer (vii) Class 1 Insurer carrying on general business and long-term business (viii) Class 2 Insurer carrying on general business and long-term business (ix) Class 3 Insurer carrying on general business and long-term business (x) Class 4 Insurer carrying on general business and long-term business (b) An insurance manager under Section 10 of the Insurance Act (c) An insurance broker under Section 10 of the Insurance Act (d) An insurance agent under Section 10 of the Insurance Act (e) An insurance salesman under Section 10 of the Insurance Act

Investment Companies
Investment Business Act 1998 applies. Local Investment Companies must be granted a license to carry on investment business in Bermuda within the meaning of section 2 of the Act, before they can sell their services. Licenses carry specific fees: Applying for a license under section 6 Annual fee for grant of license under section 10(1)

Licensed Companies
Meaning companies licensed in accordance with the provisions of the Companies Act 1981 and the relevant Banks and Deposit Companies Act 1999. All shall forward license fees to the Registrar of Companies no later than 31st January. Banks Application for a banking license Where the bank has consolidated gross assets (in all currencies) of less than $200 million in value Where the bank has consolidated assets (in all currencies) of $200 million or more in value Deposit Companies Application for a deposit company license Trust Companies Every Trust Company licensed in accordance with the provisions of the Trust Companies Act 1991 shall no later than March 31 in every year following the year in which it was licensed, pay a specific amount. Public Trusts (Regulation of Trust Business) Act 2001 Regulates all trust companies. Came into force on 25 January 2002, replacing the Trust Companies Act 1991.Licensing is a requirement.

Medical Practitioners Act 1950

To register a medical practitioner in Bermuda under section 7, specific fees apply: On application On registration Issuing an authorization to a visiting practitioner under section 21 For a locum tenens under section 22

Segregated Accounts Companies (SACs)

In addition to the annual fee or tax otherwise payable, these companies pay an annual fee in respect of each segregated account operated by the company, subject to a maximum fee in the aggregate. A segregated account company is one with separate cells or accounts created where assets and liabilities in each cell or account are completely ring-fenced. For example, for a split rights deal in a recording or theatrical company, one cell has sound recording receipts and the other has theatrical and merchandising receipts.

125+ files on other aspects of Bermuda

Last Updated: November 24, 2012. Multi-national 2012 by Bermuda Online. All Rights Reserved. Contact Editor/writer and webmaster.

http://www.bermuda-online.org/business.htm

26.11.2012