I. ABOUT THE COUNTRY

Bermda is situated in the Atlantic ocean. It has a population of about 60,000 and a thriving tourist industry. Bermuda enjoys advanced communications and travel connections. It is the oldest colony of the United Kingdom, yet has been self-governing for over 300 years with respect to its own affairs, aside from defence and external affairs. At the same time because of its strategic location in the North Atlantic (being much further north than is commonly believed and considerably closer to New York and Boston than the Caribbean) Bermuda benefits from being effectively under the US defence umbrella. The legal system is based on English common law, modified and supplemented by Acts passed under the Bermuda Constitution Order, 1968.

II. THE ADVANTAGES

Bermuda has no estate duties, income tax or capital gains tax, and no double taxation treaties of any kind. With business-orientated tax and regulatory environment, and the careful screening of investments prior to acceptance. Bermuda has attracted substantial insurance business. With the exception of London and New York, Bermuda has the largest premium flow of any insurance center.

Bermuda is widely recognized as an excellent location in which to establish trusts. "Purpose" trusts are available as well as those favouring beneficiaries. Settlors can choose which law to govern the trust.

III. CHARACTERISTICS OF THE BERMUDA EXEMPTED COMPANY

SHAREHOLDERS
Only one shareholder is required. No bearer shares are permitted. Beneficial ownership of the company has to be lodged to the Government at the time of incorporation but such details are given in confidence. Although share register of the company is open to inspection by the general public, anonymity can be retained through the use of nominees.

DIRECTORS
A minimum of three directors must be appointed with at least two directors ordinarily resident in Bermuda to allow for a quorum to be present. Corporate directors are not permitted. However, meetings of directors and of shareholders may be held outside Bermuda. All companies must maintain a register of Directors and Officers which is open to inspection by the general public.

CAPITAL
All exempted companies require a minimum issued capital of US$12,000. Only companies conducting the insurance business is required to comply with minimum amount for paid-up capital.

ANNUAL REPORTING
There is no requirement to file annual return of shareholders. The directors and shareholders may by unanimous decision dispense with the requirement for annual audited accounts.

LOCAL REQUIREMENTS
A company is required to maintain a registered office address within Bermuda, must appoint a Bermuda resident company secretary and must also appoint a quorum of Bermuda resident directors (i.e. a minimum of 2 directors must be resident in Bermuda).

TAXATION
The Exempted Company will receive an undertaking from the Minister of Finance that the company will not be subjected to any tax or duty on profits or income capital, gains or appreciation and that no inheritance tax or estate duty will be payable on shares debentures or any other obligations of the company. Currently the exemption extends until 2016 but it is likely to be further extended.