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Bermuda: E-Commerce

What to Locate in Bermuda

It would be wise to consider transferring only those parts of an operation which don't make heavy demands on accommodation, staff and premises, given their cost and scarcity in Bermuda. In fact, with the quite sophisticated facilities available, it is quite possible to set up some parts of a sales, marketing or distribution operation in Bermuda without any physical presence in the jurisdiction, while still ensuring that there is a tax presence.

To date, e-commerce companies have tended to focus on marketing and selling as the most likely business functions to locate offshore, but there is no reason why procurement, administration, payroll and other corporate functions should not be based offshore.

Since physical distribution can be outsourced, and in some countries doesn't even amount to a taxable presence, the use of offshore is by no means limited to digitally-downloadable products. Still, there is no doubt that the greatest cost and tax savings are available to those companies whose products can be delivered electronically, as in the following list:

Retail businesses dealing in intangibles or intellectual property, such as:

  • Software or music 
  • Electronic publishing enterprises 
  • Online reservations 
  • Telecommunications services 
  • Language translation services 
  • Education and Internet-based training 
  • Online gift certificates

Online brokerages and other financial services, including:

  • Insurance 
  • Legal services 
  • Software and other technical support 
  • Research and online information services 
  • Internet Service Providers (ISPs) 
  • Metamediaries and access portals 
  • Corporate services

Data warehouse centres for:

  • Processing and storing data 
  • Database management services 
  • Certification and verification services for business and consumer documents 
  • Hubs for secure transactions and communications 
  • Supply chain management centres 
  • Communications and billing hubs for fibre optic and satellite systems 
  • Network monitoring facilities and services

 

 

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