Bermuda
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Bermuda is regarded as a premier offshore business jurisdiction, with low direct taxation on personal or corporate income. The local tax system is based upon import duties, payroll taxes and consumption taxes. The legal system prevailing is derived from that of Britain, with recourse to English courts of final appeal. This is regarded as advantageous by many international trading entities and banks.


International companies

International companies in Bermuda are of several types, the most numerous example being the Exempted Company so called because it is exempted from local ownership requirements. Such companies may not conduct business in Bermuda but may undertake any type of approved business activity from a principal place of business in Bermuda. They may not compete in the local economy with Bermudian owned companies.


Bermuda Stock Exchange (BSX)

The Bermuda Stock Exchange (BSX) (www.bsx.com) first established in 1971 is now the world’s leading fully electronic offshore securities market, with a current market capitalisation (excluding mutual funds) in excess of US$330 billion.

There are 400 securities listed on the BSX of which almost 300 are offshore funds and alternative investment structures. 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 listing and trading of capital market instruments such as equities, debt issues, funds (including Hedge Fund structures) and depository receipt programmes.
www.bsx.com


Bermuda Department of Civil Aviation (BDCA)

Applications to register aircraft in Bermuda shall be approved by the Director of Civil Aviation (the Director) and this brief provides general information for applicants intending to make such applications to the Bermuda Department of Civil Aviation (the Department). Bermuda is an Overseas Territory of the United Kingdom, and the BDCA is subject to safety oversight surveillance by the Civil Aviation Authority of the United Kingdom who ensures compliance with international aviation safety standards.

A list of Bermuda law firms that specialise in registering aircraft in Bermuda, and other useful general information such as application forms concerning Bermuda certification of aircraft, may be found on the Department's website at www.dca.gov.bm.

It is permissible for a Bermuda body corporate, an Exempted Company, to be formed solely for the purpose of owning and operating aircraft on the Register; this is a customary practice. Full company incorporation is required of persons wishing to register aircraft in Bermuda and this may be achieved by the relatively straightforward process of registration under the Companies Act, 1981. Full guidance, at an early stage, should be sought from a Bermuda law firm regarding all aspects of incorporation and the maintenance of a Bermuda company. Similarly, advice should be obtained from competent legal counsel in the applicant’s principal jurisdiction regarding various possible advantages and disadvantages of such action. The Director cannot offer such advice and, when entertaining applications to register aircraft, he will assume that the applicant will have sought such professional counsel as may be necessary in the applicant’s interest.

A Bermuda Exempted Company may be incorporated subject to the consent of the Minister of Finance and further subject to the approval of the Bermuda Monetary Authority (BMA) on behalf of the Minister in accordance with the Companies Act 1981, as amended. It should be noted that the confidential disclosure of the beneficial owner’s identity to the BMA is required and strict confidentiality concerning this is ensured by statute.

The beneficial ownership and control of an aircraft to be registered must be disclosed to the Director. Such disclosure is treated in confidence and does not form a part of the public record of the registration. The BMA requires the provision of such further information as may be necessary to enable it to properly scrutinize the ownership of the company and that the applicants are persons of integrity and good financial standing. Full information on these requirements may be obtained from any Bermuda law firm practising corporate law. Such firms may also provide the Bermuda resident Directors, or the Resident Representative, of an Exempted Company and the registered office of the company. Executives of Bermuda Banks and management companies may also participate in such arrangements.

Once an Exempted Company has been established using the services of an appropriate Bermuda law firm, various tax and operational benefits become available to that company including the facility to register aircraft in Bermuda.

The Register functions in association with a range of services provided by Bermuda to international business. Aircraft registered in Bermuda enjoy global acceptance and respect for their high standard of safety and their safe operation. The Director ensures that Bermuda registered aircraft are maintained and operated to the highest standards required and accepted internationally by reputable aviation regulatory authorities. On going safety oversight of all aircraft registered in Bermuda is carried out by Department inspectors located in Bermuda and around the world. Inspections are conducted in accordance with international regulatory standards to ensure that aircraft owners' and operators' interests are protected.
www.dca.gov.bm



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