Bermuda is still very appealing to existing and start-up companies as a place to do business. Bermuda's climate is second to none, our standard of living is still relatively high, crime is low compared to other Caribbean islands and our proximity to major US business centres is unmatched. So why are many companies setting up in other jurisdictions?Recently, I have been told by several heads of international companies who wanted to domicile their company here in Bermuda that the main reasons that have discouraged them from doing so is our work permit and residency policies.Decisions in today's high-paced business world must be made in days and not months in order to keep the business competitive and profitable. Recently, an announcement was made that work permits are now going to be turned around in four weeks instead of ten weeks.How can a business in the real world wait four to ten weeks to make a decision?A company may now apply to obtain concessions for work permit exemptions for their employees under the Incentives for Job Makers Act provided the following criteria are met:* They have at least 25 Bermudians on its staff* They have Bermudians at all levels, ie entry, middle and senior levels of the company* They have entry level positions held by Bermudians graduating from high school or college* They have programmes to develop and promote Bermudians* They employ fair employment practicesOnce the company has obtained the concessions, the employee must fit certain in order to be eligible for an exemption from requiring a work permit:* The company in which the applicant is employed must be a company that has been designated as being able to apply for the work permit exemptions* The applicant must be a person in a senior executive position in that company and will continue to be employed in the company for the duration of the exemption* The applicant must be responsible for making decisions that are critical to the continuity of the company in Bermuda* The continued presence of jobs, particularly being held by Bermudians in Bermuda, is dependent on the applicant remaining in BermudaThe above are just the criteria that a company and employee must meet in order to make an application. They must then submit various pieces of documentation to support the application including the fees. The cost for a work permit exemption is $20,000 per applicant.In comparison, companies who set up in the newly created special economic zone in Cayman, Cayman Enterprise City, are entitled to numerous benefits such as 50-year direct tax exemption, ten-day streamlined set-ups and are exempt from import duties and work permit requirements.Included in the Incentives for Job Makers Act is a provision where an applicant can obtain a Permanent Residency Certificate (PRC) in Bermuda in which the following criteria must first be met:* They have been exempted from a work permit for at least ten years* They have been ordinarily resident in Bermuda for a period of ten years* Have been ordinarily resident in Bermuda during the two years immediately preceding the applicationAfter the criteria is met, applicants for the PRC who are already exempt from a work permit and have made an invaluable contribution to the economy of Bermuda are still made to produce documentation and pay an outrageous fee as follows:* A completed application form* two passport photos* Certified copies of the applicant's passport* A letter of support and character references from two sponsors* A letter from the employer supporting the residence of the applicant for ten years* A copy of the applicant's exemption certificate* The application fee of $120,000The Government of St Kitts & Nevis has been offering full citizenship since 1984 to investors who make a qualifying purchase in an approved project. This helps to stimulate the economy in many sectors and keeps the country's infrastructure current. Presently an investment of $400,000 in a hotel project can qualify an individual for full citizenship.International Business and their employees make a significantly larger contribution to Bermuda's economy than $400,000 and both still have to jump through hoops and pay an exorbitant fee in order to have only residency status. It borders on being ridiculous.I agree and understand that some of the documentation is necessary but asking the head of an international company to get two sponsor letters from Bermudians to attest to their character (after they have probably appeared in numerous newspaper articles and attended functions with the Governor and Premier) and another letter from their own company, probably signed by the applicant, indicating that they have been resident in Bermuda after they have invested millions of dollars in Bermuda's economy, produced jobs for Bermudians and given money to charitable organisations can be viewed as an insult.We should have the decency as good hosts to extend some courtesy to them as they have extended to Bermuda. We think that we are giving companies options when it comes to work permits and residency but the policies are so restrictive and complicated and the process so arduous that it is no wonder that companies are throwing their hands up in disgust and running to more welcoming, low red tape jurisdictions where they can be open for business in a matter of days and not months and made to feel that their contribution is appreciated.