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Bermuda Success Story
International commerce, undaunted by recent events, is Bermuda's leading source of revenue, luring vacationers to mix business with pleasure.
International commerce, undaunted by recent events, is Bermuda’s leading source of revenue, luring vacationers to mix business with pleasure.
The economic woes that have beset most of the world since 2007 have largely passed Bermuda by. Why? A mix of savvy regulation and a conservative financial environment. Bermuda remains open for business, now the islands’ main source of income. Whatever your business purpose, you can probably accomplish your mission in Hamilton, the small city with big business on its mind.
The image of Bermuda — warm sun, cool sea, pink sand — is the very icon of a restful holiday for travellers. For almost 100 years, the islands have traded on their friendly welcome for visitors, most coming from our large neighbour to the west. However, hospitality no longer makes up Bermuda’s largest economic sector.
For more than 15 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 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 global 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 75 years ago by a Bermudian lawyer and banker.
Regular visitors may well be aware of the positive changes that business has wrought over the past few years. Concentrated in Hamilton, economic affairs have given the 177-acre capital city an intense air of business activity.
 “How can this help me?” you might ask. The answer is, it already has, especially 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 1,250 have capital of more than $157 billion and assets of more than $472 billion. The 400 companies that have operations on the ground in Bermuda — the rest live in lawyers’ and accountants’ offices — employ 1,700 people here and 17,000 worldwide.
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.” Fifty years ago, everyone in Bermuda’s financial community knew everyone else, so the rules were fairly flexible. But today the world no longer accepts such informal regulation. Accordingly, 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 a slew of 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 a limited number of banking licences: four, to be precise. Each serves a different sector of the community, with a certain amount of overlap. Bank of Bermuda is essentially a large branch of the international HSBC bank, its parent (6 Front St., 295-4000). Bank of N.T. Butterfield 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 high net worth and corporate clients (43 Victoria St., 295-5678).
Visitors do most of their business with Bank of Bermuda and Bank of Butterfield. 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 banking officer in Bermuda, who would be delighted to meet you, might reveal opportunities, but all such activity has to 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. Once the exclusive preserve of the super-wealthy, trusts 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. At last count, more than $200 billion of fund assets were based in Bermuda. 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 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 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, while banks trade global currencies with much greater ease than in the U.S. or U.K.
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: www.cablevision.bm
CableVision is Bermuda’s most advanced video and broadband network, spanning the islands. Customers are cared for by an integrated team of technical specialists and live customer representatives available 24 hours a day, seven days a week. Choose from 11 tiers of television with over 160 channels from around the world; plus broadband at 4 Mbps, 6 Mbps or 8 Mbps; high-definition DVR; Pay-Per-View; and more. To order, call 292-5544 or e-mail info@cablevision.bm today.
Bermuda Stock Exchange (BSX)
Washington Mall, Church Street, Hamilton
Tel: 292-7212
E-mail: info@bsx.com
Website: www.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 $330 billion. There are 550 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 specialises in the listing and trading of capital market instruments such as equities, debt issues, funds (including hedge-fund structures) and derivative warrant programmes.
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 U.K.’s Financial Services Authority; and, in December 2007, was granted Recognised Stock Exchange status by the U.K.’s HM Revenue and Customs.
CCS Group Limited
Mintflower Place, 8 Par-la-Ville Road, Hamilton
Tel: 294-3400
E-mail: the_answer@ccs.bm
Website: www.ccs.bm
CCS Group is a full-service information technology company providing services in Bermuda since 1982. Today CCS has a complete portfolio of communications-technology products and services to meet the needs of enterprise-level customers as well as small- and medium-size businesses. Areas of expertise include consulting, IP telephony, infrastructure and security for local- and wide-area networks, software and development, storage area network and network-attached-storage solutions, and structured cabling. Guaranteeing your project will be delivered with the high level of service and dedication imperative from a technology partner — no matter the size or communications dependence — CCS can accommodate almost any company’s IT needs.
 Electronic Services Limited
26 Harvey Road, Paget
Tel: 236-3885
E-mail: info@electronicservices.bm
Website: www.electronicservices.bm
Electronic Services Limited 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.
Noah’s Ark
#3 Marsh Lane, Devonshire
Tel: 236-1533
E-mail: noahsark@cwbda.bm
Website: www.noahsark.bm
Noah’s Ark is Bermuda’s premier location for all your companion pet and aquarium needs and is ranked Best in Bermuda. We are a family run business that has been trading for over 15 years. We take pride in offering Bermuda’s best selection of quality pet foods along with all of the fun and practical items to keep your pets healthy and happy. Our aquarium department is the largest on the island and we are the only retail source for horse and large animal feeds and hay.
North Rock Communications
Washington Lane, Hamilton
Tel: 540-2700
E-mail: info@northrock.bm
Website: www.northrock.bm
North Rock Communications is Bermuda’s premier telecommunications provider, with more than 10 years of outstanding service. Corporate and residential customer offerings make North Rock your telecommunications one-stop shop, featuring wireless and wired Internet access, local and long-distance calling, hosting services, collocation facilities and more. Winner of Bermudian Business magazine’s Best ISP award three years in a row, North Rock is known for high-quality products and unmatched service.
 Teeter Tots Nursery
49 Church St., Hamilton
Tel: 295-6387
E-mail: 3dsrich@northrock.bm
Teeter Tots Nursery, in business for over 13 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 teaching academics.
TeleBermuda International Limited
Victoria Place, 31 Victoria St., Hamilton
Tel: 296-9000
E-mail: business@telebermuda.com
Website: www.telebermuda.com
TeleBermuda International Limited (TBI) is a leading international telecommunications and managed IT service provider in Bermuda. TBI offers data, voice, Internet co-location, business continuity, managed storage and IT services. Its World-Class Data Centre offers a secure and reliable facility for high-density server hosting with access to TBI’s sub-sea fibre network. Call or e-mail for more information. Also visit TBI’s Customer Care Centre in Victoria Place, 31 Victoria St., Hamilton.
Unique Bermuda Horse Services
Frithcote Lane / Tribe Road # 2, Warwick
Tel: 747-7433
E-mail: runhorseart@yahoo.com
Unique Bermuda Horse Services offers a great experience for the experienced or inexperienced rider by catering to your needs. If you are a beginner, the staff teach you the fundamentals of riding on well-trained horses, which you can walk, jog and trot. If you are more experienced, they allow you to canter and gallop. The 90-minute trail tour is a beautiful guided ride through the back roads, trails and beaches of Bermuda. Horses are well-mannered mounts that are trail or show quality. Tours are conducted in a personalised manner by expert trainer Mike Watson, who has more than 30 years of experience in horse training.
Unlimited Supplies
7 Elliott St., Hamilton
Tel: 295-9229
E-mail: info@unsonline.com
Website: www.unsonline.com
Unlimited Supplies represents retail electronics at its best, specialising in design of home theatre, home audio and video at any level. Whether you need a single telephone or whole-house telephone, security, cable TV or CCTV systems, Unlimited can take care of it, plus audio-video furniture, the best massage chairs on the market, and brands such as Atlantic, BDI, Denon, Draper, Jamo, Klipsch, Mirage, Motorola, Nokia, Panasonic, Parasound, Prepac, Samsung, Sanus, Sanyo, Sony and Swann Communications. Look for them behind St. Theresa’s Church on Cedar Avenue. Call or e-mail for more information. Also visit TBI’s Customer Care Centre in Victoria Place, 31 Victoria St., Hamilton.
World Distributors Ltd.
32 North St., Hamilton
Tel: 295-2329
E-mail: saleswdl@logic.bm
In business for over 50 years, World Distributors Ltd. is Bermuda’s only authorised Yamaha motorcycle dealer. No. 1 in service, it offers a full line of helmets, carry boxes, locks and rain suits from its 4,000-square-foot showroom. Ride Yamaha, a name renowned for quality.
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.
Book your air and hotel now. Its fast, economical and convenient using our online booking tool.
Make your Bermuda trip even more memorable with dolphins! Dolphin Quest offers fun, interactive dolphin encounter programs for all. Book your adventure today!
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Have a fun-filled vacation with a cycle from Oleander. If you can ride a bicycle, you can easily ride an Oleander scooter. See all of Bermuda...reserve one today!
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Relax, enjoy, save and see Bermuda by bus. A blue or pink pole indicates bus stops. If the pole is topped with blue, the bus travels from Hamilton; if the pole is topped pink, the route is toward Hamilton.
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