Bermuda saw a 25 percent increase in the number of companies incorporating on the Island during the first quarter of 2004, according to figures released yesterday by the Bermuda Monetary Authority.

The number of companies to set up in Bermuda rose to 369, a 25 percent gain on the same period a year ago.

But incorporation activity is more or less on par with where it was two years ago, as there was a slump during the first quarter of 2003 as incorporations fell of by 21 percent.

The total applications approved during the first quarter of 2004 was 369 ? up from 296 during the same period in 2003.

The biggest gain was in the number of exempted company incorporations with 254 companies, or 50 more than a year prior, setting up with exemption from the 60 percent Bermudian ownership requirement put on local companies.

The growth in the number of exempted companies compares to a drop last year when numbers fell by 80 from 283 for the first quarter of 2002 to 203 for the same period that year.

There was also a gain in the first quarter, 2004 in the number of exempted partnerships with the Island racking up 25 compared to six a year ago.

During the first quarter of this year and last year there were no overseas partnership applications approved.

Overseas permit company incorporations bucked the growth trend this year however with the number falling by five to five, compared to ten new incorporations of this type last year.

Meanwhile, 21 new unit trusts were incorporated during the period compared to 18 a year ago. And the incorporation of continuation companies ? defined as companies from other jurisdictions continuing into Bermuda as exempted companies ? was the same year on year, with five setting this year and last during the first quarters.

No unlimited liability companies were incorporated this year or last, during this period. There was also marginal growth in the number of local company incorporations with Bermuda registering 59 shares compared to 53 a year ago.