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BRITISH VIRGIN CAPTIVE ISLANDS

Summary at a Glance

Total captive insurance incorporation costs (excl. US$16,300 US$16,300 US$10,300 Government fees)

Subsequent annual costs US$12,350 US$12,350 US$18,216

How long to incorporate a captive insurance co.? 7 weeks 7 weeks 5 weeks

Do you visit the country for incorporation? No No No

100,000 – 200,000* US$120,000 - Minimum share capital US$200,000 US$1,000,000*

 Supervisor of Insurance Regulatory Authority Cayman Islands and the Assessment Financial Services Monetary Authority and Licensing

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BRITISH VIRGIN CAYMAN ISLANDS BERMUDA CAPTIVE INSURANCE ISLANDS

Committee (ALC) of the Commission (BVIFSC) (CIMA) Bermuda Monetary Authority (“BMA”)

 Registrar of Companies (ROC)

Licenses 8 categories of insurers 4 categories of insurers 7 categories of insurers

Registered office required? Yes Yes Yes

No (local representative Local directors required? No No and local secretary enough)

Resident registered agent required? Yes No No

Resident manager required? No Yes Yes

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BRITISH VIRGIN CAYMAN ISLANDS BERMUDA CAPTIVE INSURANCE ISLANDS

Legal considerations

Minimum number of directors required? 2 2 2

Minimum number of resident directors required? 0 0* 0

Corporate directors allowed? No No

Individual directors allowed? Yes Yes Yes

Minimum number of resident managers required? 1 1 1

Must the managers have a license? Yes Yes Yes

0 Minimum number of representative required? 1 0 (if there is a manager) Minimum number of resident representative 1 0 0 required?

Public register of shareholders and directors Yes Yes Yes

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BRITISH VIRGIN CAYMAN ISLANDS BERMUDA CAPTIVE INSURANCE ISLANDS

Tax and accounting considerations

Corporate tax payable 0 0 0

Audited financial statements Yes Yes Yes

 Audited statutory financial statements Certificate of What to report to the Regulatory Authority -  Declaration of solvency Compliance ratios

Audit firm required? Yes Yes, local Yes

Annual tax return to be submitted Yes Yes Yes

Access to how many double tax treaties 0 2 0

Withholding tax payable 0 0 0

Can the captive insurer hire expatriate staff in the No No No country?

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BRITISH VIRGIN CAYMAN ISLANDS BERMUDA CAPTIVE INSURANCE ISLANDS

Logistic considerations Allowed to invoice/sign sales contracts with local No No No clients

Can rent office premises in the country No No No

Average monthly salary in Captive insurers (US$) US$8,500 US$8,500 US$8,500

English spoken rate 97% 75% 95%

Literacy rate (%) 98% 98% 99%

Computer literacy rate (%) 88.3% 46.9% 70.6%

GDP per capita (US$) US$86,000 US$42,300 US$43,800

Population (in million) 69,467 31,912 53,737

Unemployment rate 8% 8.7% 4%

Inflation rate (2013) 2.4% 2.2% 1.2%

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BRITISH VIRGIN CAYMAN ISLANDS BERMUDA CAPTIVE INSURANCE ISLANDS

Estimate of engagement costs

Healy Consultants engagement fees US$15,200 US$15,200 US$9,200

Company secretary and legal registered office US$1,100 US$1,100 1,100

Estimate of Government registration fees US$3,500* US$3,500 US$10,366

Estimate of total outgoings in Year 1 US$19,800 US$19,800 US$20,666

Draft invoice draft invoice - draft invoice - BVI draft invoice - Bermuda captive insurance 14 10 2013.doccaptive insurance 14 10 2013.doc Cayman Islands captive insurance 14 10 2013.doc

*Depending on the class

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