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Financial Centre
A leader in international commerce, Bermuda offers a world-class business environment in a spectacular setting.
Bermuda has cultivated a thriving hospitality and tourism industry over the past 100 years. However, this is no longer Bermuda’s largest economic sector. For more than 17 years, international business, a mix of insurance and reinsurance, banking, trust services and fund-administration services have been growing sectors in Bermuda’s economy. It seems that Bermudians are just as adept at looking after other people’s money as they are at looking after other people’s holidays.
Most in the international business community are aware of Bermuda’s dominant position as a global financial centre. Bermuda’s intelligent balance in regulation has attracted the crème de la crème of North American and European business interests.
Business and support services make up Bermuda’s biggest employer, ahead of the government, hospitality and construction sectors. Business activities, other than local banking, are concentrated in Hamilton, the city in which the offshore company as we know it today was invented almost 77 years ago by a Bermudian lawyer and banker. In addition, if you come from Europe or North America, chances are excellent that a Bermudian company insures some of your risks. Insurance companies pass on a share of their risks to others. By spreading risk, insurance companies greatly increase their probabilities of surviving massive losses, such as a Hurricane Katrina or a September 11. When insurance companies buy insurance, that business is called reinsurance, one of Bermuda’s strongest industries. Close to half of all U.S. property catastrophe risk is ultimately the responsibility of Bermuda-based insurance companies, of which some 1,061 have capital of more than $182 billion and assets of more than $496 billion.
Regulation
 Financial activity is regulated by the Bermuda Monetary Authority, virtually independent of the government. The BMA enforces the laws the government makes relating to financial transactions.
Bermuda has earned a reputation for regulation that is “fair but firm.” The BMA oversees financial institutions to standards at or above those set elsewhere. Some estimates place the value of assets maintained or registered in, or traded from, Bermuda at well above $1 trillion. Most are owned internationally, registered electronically and highly mobile. Bermuda’s services in this arena rely entirely on the islands maintaining a sterling reputation.
Taxes
Bermuda levies no income tax, although it does have a payroll tax for those who work here. It also has no capital gains or corporate taxes. The islands are by no means tax-free, however, with property and vehicle taxes, hefty duties built into retail prices, and many smaller transaction and ownership taxes necessary to support a government that employs one in six working citizens and spends more than $1 billion a year.
U.S. citizens are taxed on their worldwide income, regardless of where they earn it. For others, to take advantage of Bermuda’s lower-tax environment, they must work and live here. To do that they must supply a skill that Bermudians cannot. About one-fifth of Bermuda’s workforce is imported, since the economy creates more jobs than there are working locals. Guest workers are issued annual permits that limit them to doing the job at hand for a limited period of time.
Banking
 Bermuda has four banking licences. Each serves a different sector of the community, with a certain amount of overlap. HSBC Bank Bermuda Limited (6 Front St., 295-4000). Bank of N.T. Butterfield & Son Limited is akin to a super-regional bank, with operations in 15 countries (65 Front St., 295-1111). Capital G is a community bank and high-level financial adviser (21–25 Reid St., 296-6969), and Bermuda Commercial Bank Limited handles only commercial, corporate and high net worth clients (19 Par-la-Ville Road, 295-5678).
Visitors do most of their business with HSBC Bank Bermuda Limited and Bank of N.T. Butterfield & Son Limited. Other than currency and change transactions and all the obvious advantages of cheques, credit cards and so on, a Bermuda bank account offers international connections and access to certain areas of the investment world that some larger jurisdictions deny their citizens. The financial behaviour of U.S. citizens, in particular, is greatly limited. A chat with a friendly banking officer in Bermuda might reveal opportunities, but all such activity must be reported to the authorities in your home country.
Insurance
Bermuda now ranks with New York and London as a global insurance centre, although the majority of its business is wholesale, i.e., reinsurance or “captive” insurance, which is a type of self-insurance that Bermuda pioneered. Other than playing a role in insuring millions around the world, the main contribution made by Bermuda’s insurance industry is in keeping costs down for visitors. While Bermuda is not exactly inexpensive, it would be a great deal more costly were insurance and reinsurance companies not footing over half the government’s annual budget.
 Trust Services
Trusts are a core service of the Bermuda economy, with dedicated companies owned by banks, accountants and law firms. They allow assets to be passed down the generations, donated to charities or managed for other purposes, with minimal interference from governments and others.
Trust services can be expensive, however, and only really benefit those with significant assets or income. Most countries around the world recognise the legal independence of a trust, into which assets may be injected that stop being the property of the person or company that established the trust. This loss of control — assets are managed by trustees for the benefit of named individuals or organisations — usually cannot be revoked. If such a mechanism sounds attractive, a conversation with a trust provider, listed in the Yellow Pages, will quickly bring you up to speed on costs, benefits and limitations.
Funds
Collective investment schemes, such as mutual funds and hedge funds, are well served in Bermuda. Funds can be operated or administered here. These range from money market funds operated conservatively by banks to private hedge funds and commodity funds on the outer edges of the risk curve.
Again, Bermuda funds are not for everyone. Every country has different rules about how their citizens may invest, almost all of whom are taxed on the income from such funds. The best starting point is a conversation with one of the banks or a representative of one of the larger public funds.
Bermuda Stock Exchange
The Bermuda Stock Exchange (BSX) is the pre-eminent all-electronic offshore exchange for the listing of mutual and hedge funds, unit trusts and limited partnerships. Many companies that are listed on one of the larger U.S. or European exchanges maintain a secondary listing in Bermuda to facilitate ownership by international shareholders.
Offshore Companies
 Those doing business internationally often find a Bermuda company useful in their corporate architecture. The islands’ tax neutrality, location, international air connections and familiarity with corporate affairs can make a Bermuda company the ideal business solution.
Applications to form a company are handled by local attorneys, who subject applicants to close scrutiny before passing them on to the BMA, which vets them for suitability to join Bermuda’s exclusive club of about 14,000 international companies and partnerships.
Like any well-managed business centre, Bermuda has extensive company legislation and rules of operation, which make a Bermuda attorney both the best starting point and often a sensible continuing relationship.
Staying In Touch
Visitors can buy SIM cards and prepaid telephone minutes or rent mobile phones to keep in touch. Many overseas GSM phones work in Bermuda. Check with your service provider.
Hamilton is in every sense a modern business venue. Wi-Fi hot spots abound here and at the airport. In Hamilton, stop at the TeleBermuda International (TBI) customer centre at 31 Victoria St., where you can purchase telephone cards and Internet access at lower rates than at most hotels.
Contact these businesses for more information and assistance. Or use the links at the top of the page to find full details and more professional services to help you succeed at business in Bermuda.
 Bermuda CableVision
19 Laffan St., Hamilton
Tel: 292-5544
E-mail: info@cablevision.bm
Website: cablevision.bm
Choose CableVision for the best service and widest selection in television and Internet. Customers are cared for by an integrated team of technical specialists and live customer representatives around the clock. Choose channels from the U.S., U.K., Canada, Portugal, France, Jamaica and more. Get Internet service with the fastest upload speed and download speed up to 8 Mbps. Advanced services include high definition, DVR, Pay Per View and more.
Bermuda Stock Exchange (BSX)
Washington Mall, Church Street, Hamilton
Tel: 292-7212
E-mail: info@bsx.com
Website: bsx.com
Established in 1971, the Bermuda Stock Exchange (BSX) is now the world’s leading fully electronic offshore securities market, with a current market capitalisation (excluding mutual funds) in excess of $200 billion. There are over 700 securities listed on the BSX, of which over 350 are offshore funds and alternative investment structures. Trading occurs daily, and settlement is on a rolling T+3 basis using BEST, the BSX’s central-limit-order-book trading mechanism, which is integrated tightly with the exchange’s clearing, settlement and depository platforms.
The success of the BSX lies in its innovative approach to new products and markets and its ability to offer a commercially sensible regulatory environment. The exchange specializes in the listing and trading of capital market instruments such as equities, debt issues, funds (including hedge-fund structures), derivative warrant programmes and insurance-linked securities, including catastrophe bonds.
The BSX, recognised by the U.S. Securities and Exchange Commission as a designated offshore securities market, is a full member of the World Federation of Exchanges and is located in an OECD member nation.
In recent developments, the BSX was granted Approved Stock Exchange Status under Australia’s Foreign Investment Fund taxation rules; Designated Investment Exchange status by the UK’s Financial Services Authority; and, in December 2007, was granted Recognised Stock Exchange status by the UK’s HM Revenue and Customs. In February 2008, the BSX was admitted to membership in the Americas' Central Securities Depositories Association.
Bermuda Technologies Ltd.
PO Box 3077, Hamilton HM NX
Tel: 296-7000
E-mail: info@btl.bm
Website: bti.bm
Focused on providing telephony solutions for the modern business environment, Bermuda Technologies has extensive experience working with some of the largest and most demanding organisations in the local and international business communities. The people of Bermuda Technologies honed their technical expertise on communications products that utilise your computer network infrastructure, providing the opportunity to integrate telephony services seamlessly, such as PBX systems (Avaya) and audio and video conferencing solutions (Polycom) with computer network access, thereby avoiding the expense of a separate communications network.
Business Bermuda
Windsor House, First Floor, 22 Queen St., Hamilton
Tel: 292-0632
Website: businessbermuda.org
Business Bermuda is an organisation of almost 200 leading companies serving clients in the international business community. Members offer accounting, legal, banking, management, insurance, reinsurance, telecommunications, e-business, information technology, and international trust and fund services. As home to leading financial, insurance, reinsurance and e-business specialists, Bermuda has cemented its role as the international financial jurisdiction of choice. Its unique geographic position allows full access to North American and European markets. Its recognised and effective regulatory framework and its long established “KYC” philosophy make Bermuda an exceptional base from which to meet financial-service needs. With the support services provided by our member companies, Business Bermuda can assist you in realising the advantages of doing business in Bermuda.
Decisions Ltd.
PO Box 3077, Hamilton HM NX
Tel: 295-4533
E-mail: info@decisions.bm
Website: decisions.bm
Providing a comprehensive array of solutions for all your information-technology and structured-cabling needs, key areas of expertise include IP design and audit, storage area networks, virtualisation, server and desktop support, small office / home office solutions, anti-viral technology, and managed services for complete fixed-cost IT support. Decisions is the only CommScope-certified cabling company in Bermuda. With extensive experience designing and installing complex cable infrastructures, it also provides wireless solutions ranging from metropolitan to residential.
 Electronic Services Limited
26 Harvey Road, Paget
Tel: 236-3885
E-mail: info@electronicservices.bm
Website: electronicservices.bm
Electronic Services Ltd. is an audiovisual company with more than 30 years of experience. The firm provides technical support and equipment to major hotels, small properties and corporate offices in Bermuda. Electronic Services Ltd. has worked with many large overseas production companies and meeting planners to provide custom services for clients with conventions and video conferences in Bermuda.
Hospitality Systems Ltd.
PO Box 3077, Hamilton HM NX
Tel: 295-4533
E-mail: info@hsl.bm
Website: hsl.bm
Hospitality Systems Limited is the exclusive provider in Bermuda of MICROS point-of-sale terminals and the Opera (Fidelio) property-management system. These systems are leaders in the hospitality industry worldwide, providing an integrated and intelligent solution that ensures a clear flow of information throughout any hospitality property, from front office, reservations and catering to materials control and customer-relationship management. MICROS has product solutions for any restaurant, large or small, which can help to reduce redundancies, avoid purchasing errors and improve customer service.
Noah’s Ark
3 Marsh Lane, Devonshire
Tel: 236-1533
E-mail: noahsark@cwbda.bm
Website: noahsark.bm
Noah’s Ark is Bermuda’s premier location for pet and aquarium needs and has been ranked as Best in Bermuda. The family-run business has been trading for over 15 years and takes pride in offering Bermuda’s best selection of high-quality pet foods, along with fun and practical items to keep your pets healthy and happy. The aquarium department is the largest on the islands, and the store is the only retail source for horse and other large-animal feeds and hay.
Oleander Cycles
Tel: 236-2453 (Main Office)
E-mail: oleander@ibl.bm
Website: oleandercycles.bm
Bermuda’s No. 1 scooter livery offers quality scooters at competitive rates. You receive friendly five-star service and safety demonstration in a private practice area. Oleander’s reputation is the best in Bermuda, earned over years of serving visitors. Free delivery or transportation to and from your hotel is available, depending on your location. Shops are open daily. No security deposit is required, however, a major credit card must be on file.
 Teeter Tots Nursery
49 Church St., Hamilton
Tel: 295-6387
E-mail: teetertots@northrock.bm
Teeter Tots Nursery, in business for over 14 years, has a convenient location in the city of Hamilton. Teeter Tots operates all year, the facility is air-conditioned, and all teachers are qualified and very caring. The nursery believes in teaching the whole child, not just academics.
TeleBermuda International Limited
Victoria Place, 1st Floor,
31 Victoria St., Hamilton
Tel: 296-9000
E-mail:
business@telebermuda.com
Website: telebermuda.com
TeleBermuda International Limited, a leading international telecommunications and managed-IT provider in Bermuda, offers data, voice, Internet, co-location hosting, business-continuity, managed storage and IT services to the residential, commercial and international carrier markets. Call or e-mail a TBI corporate sales representative to find out more regarding TBI’s business products and services.
DID YOU KNOW? As of December 31, 2005, birth certificates for travel to Bermuda are no longer accepted. Travelers must have a valid passport. Go to travel.state.gov for information.
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