Company Registrations Show “Positive Trend”

August 21, 2014

[Updated with PLP comment] Minister of Education and Economic Development, Dr. Grant Gibbons said that the Registrar of Companies’ data on new company incorporations for the second quarter of 2014 continues to “show a strong positive trend in the number of new company registrations.”

The Ministry said, “Results following the close of the quarter in June showed that the number of new company registrations to date in 2014 were higher than any mid-year total in the last 5 years. Coupled with the strong performance in international business registrations, the second quarter results show positive signs for Bermuda’s economy.”

Dr. Gibbons said, “308 new companies were registered during the second quarter of 2014, resulting in a 2% increase over the 303 new registrations recorded for the same period in 2013. While this was a slight increase in the quarterly comparisons, we continue to see an upward trend in overall company formations in 2014.

“On the back of strong 2013 results, the 616 new company incorporations thus far in 2014 is the highest mid-year level seen since 2008. Sustained growth in new business formations shows very positive impacts of our ongoing efforts to stimulate the economy. We’ve seen strong results in international company registrations.

“The incorporation of 268 new international businesses in Q2 2014 represents a 7% increase over the 250 international companies registered in the same period in 2013, and a 23.5% increase over the 217 registrations in the second quarter of 2012. In addition, there were 40 new local companies registered in Q2 2014, compared to 53 in Q2 2013 and 34 in Q2 2012.”

“We are pleased with the continued growth in the total number of new company registrations. These results show that Bermuda is moving in the right direction. Growth in our business community is essential in laying the foundation for othe r positive economic impacts including overall job growth and increased spending in the local economy. We are looking forward to continued positive results for the remainder of 2014,” stated Dr. Gibbons.

At the end of Q2 2014, there was a total of 19,151 local and exempt entities on the Register, the Ministry said. That number showed increases over Q2 totals for both 2013 and 2012 which were 18,927 [revised] and 17,884, respectively.

Update 8.11pm: A PLP spokesperson said, “The OBA statement on company registrations is small comfort to the thousands of Bermudians who are out of work, running out of savings and seeing their Financial Assistance slashed.

“Under the OBA, Bermudians continue to lose their jobs. Workers continue to see their pay packets shrink and their working hours plummet. In some companies, they are choosing not to hire replacements, but to double up on the existing staff’s work load. Like us, Bermudians are asking, “Where are the jobs?”

“The OBA promised 2000 jobs, yet they have never produced a plan nor have they answered several simple questions; In what industries would these jobs be created? How many in each industry? When will they be created?

“Bermudians are beginning to lose confidence in an OBA that breaks promises and who have been caught repeatedly deceiving the people of Bermuda. The OBA promised 2000 jobs and this is a promise that requires a plan, timelines and results. It is one promise that Bermudians cannot afford the OBA to break.”

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Comments (26)

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  1. Independent says:

    The incorporation of new business here is great. What we need also is bodies domiciling here that will spur economic activity. Empty buildings in Hamilton,hopefully are filling up!

    • Greed Killed Bermuda says:

      Just paper companies, trusts and ILS vehicles. Nothing to bring jobs.

      • RJ says:

        So business just writes itself? Okay.

      • Creamy says:

        No, there are new companies that are employing people.

      • George Brown?! says:

        Money coming in is a start. It beats stories of the register shrinking.

        Small steps … small steps.

        I am disappointed in the PLPs reply. Have they learnt nothing? Why are they still playing these 80s negative / militant politics games. We are not purple koolaid drinkers. We will not follow any party off the cliff. Most educated voters could care less about party politics and who our parents voted for! We want good , honest people that REALLY lookk out for the best interests of everyone, not just the rich, the poor, the execs or the labourers. We understand equal rights and justice for all. I want my kids to love this country as much as I did. I want them to expect to be given NOTHING and EARN and appreciate everything the own. Stop with the negative replies. If you are going to complain about the OBA not doing anything and not offering solutions, at least offer up your own solutions! If you cant offer ideas on how we can improve life here for EVERYONE, at least have the common sense to not give us a reason to remember who got us in this MESS!

  2. Justin says:

    What is the chance that it is a coincidence that as soon as the OBA gets elected into power new registrations go through the roof? No coincidence at all if you ask me. Well done OBA!

    • mixitup says:

      Here is your $3.99 per blog, now go away!

      • Triangle Drifter says:

        Can’t handle positive news can you. During the PLP experiment IB got chased out resulting in empty Bermudian owned apartments & lost trickle down jobs. How did that work out for you?

        These new setups may not create jobs in the imediate future but at least they are helping to preserve the jobs that are still here.

        Hope this is not too complex for you to understand.

        • Longtail says:

          TD – ‘mixitup’ really does not want to understand: his repeated negative barbs are all too frequent. No wonder he seems to be an expert on the going rate for spam blogs!

    • Greed Killed Bermuda says:

      Given that the stats were trending up prior to the election, I would say no coincidence at all.

      But the same issue exists. NO Jobs! Just transactions, but no jobs.

      • No jobs??? says:

        Greed, fact is that even the largest of companies on the island opened its doors with only a few employees. As business grows they add staff. There is no way that a startup is going to incorporate and immediately hire dozens of people. Reality is they’re going to start off with at most a half dozen.

    • Ian says:

      Company registration is always good, but they’re not exactly through the roof in comparison to the annual norm…

  3. watching says:

    Great news! But how many jobs are expected from these incorporations?

  4. LOL (Original TM*) says:

    Looks and sounds good hopefully this might translate to some more jobs being created. Does anyone know if this these are companies being mannaged by companies here already.

    LOL

    • Evie says:

      The new incorporations will not translate in to new job it does however put some monies in government and the two busiest law firms in Bermuda they will benefit the most don’t get excited hahahahaha

      • Jobs??? says:

        Not strictly true. Some of the new incorporations will directly translate into new jobs in the sense that they will employ people directly. But those law firms require bodies to do their work (as do the accounting firms and the management companies) so regardless they do bring employment to the island. Perhaps not huge numbers, at least in the start up stage, but that’s too be expected.

    • Creamy says:

      There are some new companies with new employees.

      • Tolerate says:

        A PLP spokesperson said, “The OBA statement on company registrations is small comfort to the thousands of Bermudians who are out of work, running out of savings and seeing their Financial Assistance slashed.
        Damn really…..
        And yes, “there are some new companies with new employees”. I work in an industry to see it with my own eyes. Not getting over excited but its positive at least.
        Unless your the PLP spokesperson.
        SMH

  5. Time Shall Tell says:

    Registration of companies vs the actual physical relocation of companies (which would actually bring along with them potential jobs for locals)are two different things. Wasn’t just earlier this week that the local real estate companies mentioning int he local media how the number of empty commercial property has remained constant over the last few years.

  6. aceboy says:

    Even if the bulk of these incorporations are not employment “makers”, they are employment KEEPERS. Anyone involved in corporate service businesses will be happy.

  7. Kangoocar says:

    I find it amusing how the plp talking heads have very little good to say about this??? Why don’t they for a moment think about the massive hole the plp dug and put us all in??? We all need to be patient and let things grow, right now this is good for keeping employment, in the future IF the plp stay out of the picture and remain an opposition party, then we will all see the benifits of some of these companies having A REAL presents here!!!! For now we all need to be happy they are paying into the government bank account in order for us to pay the interest on the HUGE debt the plp left us with!!!!

    • Ya got me Rollin says:

      What hole are you in??????Really, tell us all the hole that you are in….

      • Toodle-oo says:

        Err , probably that one where we all , each and every one of us, now owes $40,000+ to government .

        You are aware of that , aren’t you ?

  8. Sid says:

    Even “paper” companies help Bermuda’s economy and create jobs:

    - government registration fees (so less national debt)
    - revenue for all the Bermudian-owned businesses that support “paper” companies: corporate services, law firms, accountants, etc.
    - you’d be surprised how many owners of “paper” Bermuda company visit the island on business trips or holidays
    - all sorts of other spinoffs that can’t be predicted

  9. 2,000 JOBS for the "Locals" says:

    So where is my JOB please? Since there are hundreds of new companies established under the OBA