Multinational corporations (MNCs) must take advantage of every opportunity to thrive in the increasingly competitive global markets of the 21st century. Between Wall Street expectations of growth and the quarterly demands of investors to deploy their capital wisely, MNCs need to find effective ways to navigate conflicting tax systems and burdensome regulations that stall growth. As a result, business leaders are increasingly exploring opportunities to structure operations in regions with regulatory regimes more business-friendly than those in North America and Europe—yet fully compliant with international tax treaties and oversight. Increasingly, they are finding that Bermuda completely meets their needs.
Bermuda’s regulatory regime has long been renowned for being favorable to business growth. It boasts a pragmatic approach with a lack of bureaucratic red tape and ease-of-operations—from opening a business to hiring qualified professionals right on the island. Bermuda has set itself apart from other corporate jurisdictions through regulatory leadership that meets or surpasses transparency and reporting standards set by the United States and European Union. In addition to the 90 treaty partnerships Bermuda has across the globe, it has been granted several critically important distinctions that demonstrate it is recognized by major economic powers as a player on the world stage.
In 2016, Bermuda was awarded Solvency II equivalence by the European Parliament and Council. The designation allows Bermuda’s insurance and reinsurance businesses—some of the most important in the world—to compete for business on a level playing field with their counterparts in the EU. This designation is an important demonstration of the respect regulators in the EU have for the way Bermuda conducts its business. In fact, only one other nation outside the EU has been granted the same distinction.
Also in 2016, Bermuda took a major step when it signed on to the OECD’s Country-by-Country reporting standards, further demonstrating its commitment to transparency and compliance. By doing so, Bermuda joined a regulatory information-sharing network made up of G20 nations such as Australia, Canada, France, Germany, Japan and the UK.
Having one of the world’s most sophisticated regulatory systems and international recognition for a superior transparency reporting structure is why Bermuda is one of the most attractive places to do business today.