BUSINESS A–Z
Opportunities in the country that thinks like a company By Duncan Hall AIRCRAFT REGISTRATION Founded in 1931, Bermuda’s register includes more than 700 aircraft, many of which are corporate and privately owned jets. However, the majority of aircraft on the register are commercial aircraft, including a number from Russia and the Commonwealth of Independent States. The Bermuda register has been designated a Category 1 operation by the US Federal Aviation Administration, recognising that Bermuda complies with international standards with respect to the safety oversight of its air carriers that operate in the US. Contact: Thomas Dunstan, Director of Civil Aviation, 293-1640 / tdunstan@gov.bm
and Approved Stock Exchange status under Australia’s Foreign Investment Fund taxation rules. Contact: Greg Wojciechowski, CEO, BSX, 292-7212 / ceo@bsx.com
BERMUDA STOCK EXCHANGE Now in its 48th year of operation, the BSX is the world’s largest fully electronic offshore securities market. The BSX operates a market for international securities, issued either by Bermuda-incorporated exempted companies or non-Bermudian issuers, as well as a domestic market for Bermuda’s local companies. The BSX, which has more than 600 issuers with a total market capitalisation in excess of $430 billion, specialises in listing capital market instruments, equities, debt issues, funds and depository programmes. It is one of the world’s leading listing facilities for offshore funds and alternative investment vehicles and supports niche markets for specialised insurance and debt products. Among the BSX’s unique products and services is its Mezzanine Market, a unique pre-IPO market listing for start-up, high growth potential companies. The BSX, which is regulated by the Bermuda Monetary Authority, has been granted Designated Offshore Securities Market status by the SEC, Designated Investment Exchange status by the UK Financial Services Authority
EXEMPTED COMPANIES Exempted companies are the primary vehicles by which “non-Bermudians” incorporate in Bermuda. So called because they are exempted from legal requirements in respect of Bermudian ownership of the company, exempted companies are generally prohibited from carrying on business in Bermuda. Rather, they carry on business outside Bermuda from a base on the Island — or, in some limited circumstances, in Bermuda with other exempted undertakings. As for the benefits of forming such a company here, Bermuda does not levy taxes on profits, income, dividends or capital gains. Indeed, there is no requirement that a company pay dividends at all. Upon formation, exempted companies typically receive an assurance from the Government regarding their non-taxable status. Currently, that assurance is given until March 31, 2035 — and remains valid even if taxes on profits, income, or computed on any capital asset, gain or appreciation are enacted in the meantime. Contact: Kenneth Joaquin, Registrar of Companies, 295-7574 / kjoaquin@gov.bm
FOREIGN SALES CORPORATIONS Set up by American companies, FSCs take the form of exempted companies, and are given preferential treatment by US tax authorities because they promote the export of US goods. The benefits only apply to export property that is intended for sale, lease, use or consumption outside the US — and it must contain less than 50 percent nonUS content. Contact: Kenneth Joaquin, Registrar of Companies, 295-7574 / kjoaquin@gov.bm
INSURANCE & REINSURANCE Bermuda is a key market for risk transfer, a hub for the flow of some of the most innovative risk solutions. At one time a niche captives market, the Island has not only continued its dominance as the global leader in that area, it has also emerged as the world’s second largest reinsurance market and a powerful force in commercial insurance. Bermuda reinsurers provide an estimated 40 percent of US property catastrophe reinsurance capacity.
INTELLECTUAL PROPERTY Intellectual property rights are protected by both statute and the common law in Bermuda. Copyright protection exists upon the creation of an original work. Trade marks, service marks, patents and Bermuda Business Visitor 2020 7