BERMUDA DOMICILE PROFILE

Acceptable Ownership Forms
Single Parent, Association, Group and Agency Captives.

Acceptable Corporate Forms
Stock or Mutual.

Minimum Capital & Surplus
Four classes of insurance license dependent on amount of non-related business written. Minimum Capital & Surplus ranges from $120,000 to $100,000,000. (Letters of Credit permitted only above absolute minimum.)

Direct Insurance Permitted
All Commercial lines, Life and Health.

Reinsurance Permitted
May assume and cede any reinsurance other than from or to domestic Bermuda sources.

Rates & Forms
No approval required.

Minimum Premium
No minimum premium required.

Premium Taxes
No Bermuda tax.

Investment Restrictions
75% of general insurance liabilities must be in admissible assets.

Reporting Requirements
Audited annual statutory financial statements; certificate of solvency and report on compliance with legislation by Auditor, Directors and Principal Representative.

Incorporation Expenses
$ 10,000 - $ 30,000 (excluding local fees – see below).

Local Fees
Annual Government Fees range from
$ 4,000 - $ 9,000
Business Fees range from $1,000 - $7,500.

Local Office Requirements
Registered office, two Resident Directors (or equivalent) and a Principal Representative.

Time Required to Process Application
30 days.
 
Besides providing total freedom from various state taxes and regulations, an insurance subsidiary domiciled in Bermuda is granted a wide range of operating powers not available onshore. International businessmen and foreign investors enjoy the charm of a premier tourist resort that provides excellent hotels and restaurants, outstanding recreation and entertainment, and an attractive climate. The all-importance of a stable Government and legal system has undoubtedly given Bermuda the necessary edge in establishing international recognition as the premier captive domicile. Today there are close to 4,000 captive insurance companies worldwide. Due to its sophisticated infrastructure, accessible location, stable political climate and relative freedom from regulation and investment restriction, close to 50% of these companies are located in Bermuda.

With a combined capital and surplus of over $ 50 billion, the Island generates close to $ 30 billion premium annually. Total assets of Bermuda companies are approaching $ 120 billion. International recognition as an offshore financial center enables Bermuda to offer numerous advantages to the foreign investor.

Taxation
There is no taxation in Bermuda on corporate profits, dividends or income. Nor is there any capital gains tax, gift tax, sales tax or withholding tax. The only charge imposed on international companies is an Annual Government Fee. Those writing insurance and reinsurance also pay a Business Fee under the terms of the Insurance Act.

Currency Control
International companies incorporated in Bermuda are not subject to any form of currency or monetary control. They may trade and maintain bank accounts in any currency or country they desire, enjoying complete freedom to remit, repatriate, or otherwise transfer funds.

Infrastructure
There are three banks licensed to operate in Bermuda, each offering a wide range of commercial banking facilities, together with comprehensive investment, trustee and financial management services. The major international accounting firms are well established in Bermuda. Services include audit, accounting, consulting and other advisory services including actuarial projection and tax advice. There are more than a dozen practicing law firms, varying considerably in size and range of work undertaken. Services provided include incorporation and registration of companies, corporate secretarial services, provision of resident Directors and Officers, and other general legal service.

Insurance
Rent-a-Captives and Segregated Accounts Companies are a feature of the Bermuda captive scene. In addition to Captives, Bermuda hosts a strong representation of the commercial insurance fraternity of insurers, reinsurers and brokers, which complements its Captives and expands the facilities available to them.