Gibbons: Higher Number Of Companies Register
[Updated w/PLP response] Minister of Economic Development Dr. Grant Gibbons today [Oct 24] said,“I am delighted to report that we currently have a higher total number of companies registered in Bermuda than we have ever had before. The third quarter statistics reveal that we now have 19,270 companies registered in Bermuda.”
A statement from the Government said, “This peak comes after a relatively consistent decline in total companies over the last five years. The closest Bermuda has come to this in the past was in 2008, when there were 19,260 companies registered in Bermuda.
“The total number of companies registered in Bermuda has been slowly increasing throughout the first three quarters of 2013 [18,721 in the first quarter; 19,130 in the second and now 19,270 in the third].”
“The total number of new company registrations for the first, second and third quarter combined was 864, which is the highest number since 2008 and a 16% increase over the 742 reported in 2012. The increase was represented by 139 new local registrations, a 26% increase over the 110 in 2012; and 725 new international companies and partnerships, a 15% increase over the 632 in 2012.
Graph provided by the Ministry:
“This healthy increase in the total number of companies is being driven by new company registration,” said Minister Gibbons. “We are seeing a clear upward trend of local and international company formation for the first three quarters of 2013.
“The trend is consistent, proving it wasn’t just a flash in the pan for the first and second quarters. The green shoots we saw in the first two quarters have continued into the third.”
“This is an early indicator of renewed confidence and new investment in Bermuda,” explained Minister Gibbons. “Many of these new companies will lead to job creation, particularly the local companies and those international companies that are developing a physical presence on the island. It demonstrates a growing sense that people are prepared to start up new ventures and reinvest in Bermuda.”
“While the full effect of these newly registered companies will not be felt immediately, over time we expect to see more widespread economic benefits from these companies. Not all, but many, will be renting office space, hiring staff, and purchasing goods and services from local providers.”
“In the third quarter of 2013, 299 new companies registered in Bermuda – 44 local companies and 255 international companies. This can be compared to the third quarter of 2012 which saw 240 new companies register in Bermuda and of those 29 were local and 211 were international. Likewise, in 2011 for the third quarter 247 new companies registered in Bermuda and of those 44 were local and 203 were international.
“It very encouraging to see that shipping companies and aviation-related companies play a significant part in these incorporations as providing support for these sectors was part of our Throne Speech commitment.”
“There was also an increase in the registrations of investment fund companies, positively reflecting on the newly reenergised investment fund legislative and regulatory environment.
Minister Gibbons concluded, “Overall, this is extremely good news for Bermudians and Bermuda business, it demonstrates quantitative evidence that there is growth and renewed confidence in Bermuda as a place to do business.”
“Over the next few months we hope to build upon this positive momentum through the combined efforts of the Ministries of Economic Development, Finance, Home Affairs, the BMA and our partnership with the Bermuda Business Development Agency [BDA].”
Update 7.22pm: Shadow Minister Glenn Blakeney said, “While at first glance it is welcoming to see an increase in registrations, we are more concerned with the jobs that may or may not accompany these registrations.
“There have been a large number of job losses, both reported and unreported over the past few months in international business. There are many unemployed Bermudians whom are having a challenging time finding opportunities to reenter the workforce.
“We would rather the OBA government focus their efforts on job creation and discussions with these companies on how these unemployed Bermudians will be able to restart their once promising careers, versus putting out press statements that really are meaningless to those that are unable to sustain themselves with fulltime jobs.
“We appreciate the increase in registrations, and the taxes that will likely come with this, however, to the every day Mr & Mrs Bermuda, jobs are what is key. Prior to December 2012 we heard from the OBA that they would create 2000 jobs. Now, almost a year into their term, they have yet to even articulate a plan to create these jobs.”
Where you at Betty ‘propaganda’ Trump?
139 new local registrations a 26% increase over the 110 in 2012 says it all
not to be a propagandist but 139 new local registrations in a 12 month calendar period is pretty clear quantitative evidence of the lack of employment opportunities for locals
clearly these new registrants have opted to venture out into the world of the self employed rather than wait for the turn around in employment opportunities as promised by the OBA
it would be interesting to see the company objects of these registrants to determine what niche in the economy of an island 21 square kilometers they now hope to compete in
nice try with putting a positive spin on the numbers Dr. Gibbons but I for one am not wholly convinced
Well said @js, I am glad that someone is able to read beyond the Spin of the OBAubp. I wonder how many others are noting the real facts behind what is actually being presented, and not what is not being said by Dr.Gibbons..
I agree, let’s be clear. Many companies only register on paper rather than actually opening an office. This is political spin and means nothing until actual jobs come in – for the working class Bermudian.
I’m getting a little tired of seeing all of the foreign faces named for key roles in the Business section and then hearing and reading about Bermudians out of work and suffering or being told to take the lower paying job that the workers who replaced them are now offering.
Just so you know when you follow the statement “let’s be clear” with the term “many” you’ve lost the faith of your reader. Also after reading your second paragraph I can comfortably say that you are a xenophobic a**hole.
Hey Pinky
Did the OBA find you a job yet since 2012 or are you still puffing on weed waiting for a hand out from grand papi.
Hey racist
I found myself a job and my “grand papi” is dead, you should join him, heard its nice this time of year.
Shadow Minister Glenn Blakeney said, “While at first glance it is welcoming to see an increase in registrations, we are more concerned with the jobs that may or may not accompany these registrations.
“There have been a large number of job losses, both reported and unreported over the past few months in international business. There are many unemployed Bermudians whom are having a challenging time finding opportunities to reenter the workforce.
“We would rather the OBA government focus their efforts on job creation and discussions with these companies on how these unemployed Bermudians will be able to restart their once promising careers, versus putting out press statements that really are meaningless to those that are unable to sustain themselves with fulltime jobs.
@COME CORRECT…..I only ask where are the 2000 JOBS that the OBAubp promised. Guess it was just OBAubp propaganda pre-election spin for votes ah?
“There have been a large number of job losses, both reported and unreported over the past few months in international business.”
Maybe the PLP should have picked up the phone and spoken to someone in international business before making the decision to increase the payroll tax.
You are such a sad muppet.
Does this translate into employment for bermudians ?
to all of the comments questioning “where are the Jobs?” please think just for a minute…although its not a direct paycheck from these companies, the knock on effect from setting up in Bermuda will help our businesses, grocery stores, taxis, restaurants,gov revenue etc…etc…etc..there’s no silver bullet so be careful not to expect one.
Not necessarily…if its only a shell company then there are no additional people coming on board to shop or spend money in these restaurants, grocery stores etc. The only way additional money enters circulation is through hiring and payroll.
This is all good, but where are the jobs? We can have a million companies register here, if they aren’t employing Bermudians there is little gained other than regulatory fees.
I am no partisan either way or the other, but kudos to Mr. Blakeney for his response.
It was articulate and devoid of overly emotional language and accusations while also avoiding being combative.
That is definitely an improvement on the part of the Opposition and I truly hope that is the way that our representatives continue to talk to one another.
His Parliamentary colleagues could do well to follow his lead.
However, it is quite sad that in 2013 we have to praise such actions and that such events are simply an anomaly.
The graph shows the largest drop from 2008 to 2009. This appears to correlate with when the subprime mortgage fiasco and Wall Street banking crisis arose.
Of course some would argue that term limits were the cause for such a decrease; however, the upward trend from 2009 to 2011 would appear to counteract that argument as term limits were still in effect. While the upshot from 2012 to 2013 is promising, it is perhaps too early to suggest that the increase is due to any policies which the government can take credit for; and therefore the suggestion that “This is an early indicator of renewed confidence and new investment in Bermuda” appears to be a misguided assessment to draw support for the government as if it’s policy changes are taking immediate effect.
As MP Blakeney suggests, the real measure of success is a turnaround in Bermudian jobs. That being said, the OBA’s amendments to the investment fund legislation was a smart move and they should be commended as this was time sensitive and the fruits of that legislative change appear to have immediate effect. Hopefully we will see greater improvements soon as we are all in this together.
Thanks for the non bias analysis Tom.
@Tom, I enjoy reading your insightful comment, I think you provided a real summary of the findings presented based upon facts. It does make me reflect closely upon this info. Thanks for your keen comment.
A good analysis.
However, it is inaccurate to suggest that the existence of term limits had no effect because there is no way of knowing if there would have been larger increases if there were no term limits.
I agree that it is too early for the OBA to suggest the removal of term limits has had a positive impact on numbers. I do think the mood of international business has been positively affected, where that leads remains to be seen.
All I know are that folks are hurting, I am involved in charity work, and I see it. OBA must begin to set up the conditions to create jobs for Bermudians. This only seems to support others, but not the persons that come to were I do my community work daily seeking help. I can see and hear their pain. OBA must step up and move in the best interest of all in our country, or we will soon see the social ramifications. I would have expected comments from all on this issue, as Jobs are key right now in our community.
It will take a long time to restore confidence,especially if there is any hint of the past govt,getting re-elected.
Seriously? Then explain why their profits soared during the entire time the PLP were in Government!
You have no idea what you’re talking about, do you.