Why do banks operate from Bermuda / Caymans etc?
Im trying to work out why so many foreign banks / insurance companys set up operations in Bermuda etc. Im aware of the TAX FREE status but what are some other reasons?
They seem to setup limited liability companies but im not sure what the beneift of this is?
They seem to setup limited liability companies but im not sure what the beneift of this is?
No taxes is the main reason. They also offer more privacy than you will find in the US.
Banking & Investments
The selection of investment companies in Bermuda span the spectrum from boutique to behemoth. They provide advisement and management for individuals, companies, and trusts. The services can be directed or discretionary, segregated or pooled. Depending upon the specific requirements of the clients, there is a firm to complete the picture.
The Bermuda Stock Exchange services many markets. There is a host of local companies. Many international investment funds list here. The BSX is a major attraction for international companies. Based on a Bloomberg trading platform, Bermuda is one of the busiest markets for stock-crosses for some of the largest brokerage firms in the world.
The superior professional services and telecommunications infrastructure, along with the investment needs of the growing insurance market, has attracted leading minds in the hedge fund industry. Investment management, administration, and listing services are all here. Annual conferences in Bermuda provide global forums for those leading the innovation in the field.
Meantime, Bermuda banking has enjoyed a long and successful history. Started more than 100 years ago to service local businesses, Bermuda banking companies now reach out to every corner of the globe with investment management, trust management and administration services. The banks are technologically advanced with on-line banking and international bill payment. Our banks offer everything you might expect of a sophisticated financial institution - credit and debit cards, investment services, 24-hour ATM facilities, real-time online banking, loans and financial advice.
The Bermuda dollar equals the US dollar and American money is accepted everywhere on the island. No other currency is accepted, but can be exchanged by local banks at market rates. Credit cards are accepted at most retail outlets and there are ATM cash machines around the island.
