Referred to as a “tax haven” jurisdiction plus fast registration and high level of confidentiality, British Virgin Islands (BVI) is one of the most preferred destinations for offshore seekers. About 40% of the world’s offshore companies has chosen this place to conduct their business, mentioned by The Legal 500 and ICIJ. This article below will delve into key features and benefits of BVI Business Company (BC), which is the most popular entity type for those looking for offshore venture in BVI.
1. BVI BCs: What you should know
The offshore Business Company (BC), also known as an IBC, is the most prevalent company formation type in British Virgin Islands. As an BVI company, you must comply with The BVI Business Company Act, 2004 – which is the key and the most crucial piece of legislation regulating the registration, status and operation of the Business Companies in British Virgin Islands.
The replacement of International Business Companies Act, 1984 by Business Company Act in 2005 marked a highlight by removing ring-fencing provisions between offshore companies and local companies. Having been amended for several times, the latest BVI Business Company Act (Amendment) version was made in 2019. For detailed and the most accurate version of The BVI Business Companies Act, click here.
Another thing to get insight into this type is that a BVI BC can be incorporated in different legal forms: a company limited by shares; a company limited by guarantee that is authorized or not authorized to issue shares; an unlimited company that is authorized or not authorized to issue shares.
Furthermore, BVI BCs are allowed to engage in any legitimate business activities, ranging from bank and fiduciary service, insurance to investment funds, providing that the company attained relevant licenses and permits. They can also open accounts at local banks and enjoy a wide range of merits thanks to The BVI’s booming offshore financial sector.
2. Benefits of BVI BCs
The British Virgin Islands is regarded as one of the most appealing offshore company incorporation centers in the world. Its open economy coupled with a favorable tax law within a strong regulatory framework have been the facilitator of a large number of non-resident investors flocking into the territory. Below are some of the main reasons why you should set up the BVI company over many other jurisdictions:
The BVI is one of the most common tax-free jurisdictions – over 400,000 BCs on the Register as of Sep 2019 - with favorable business environment, inclusive of around 60 islands in the Caribbean Sea and is a British Overseas Territory which offers a politically and economically stable environment.
The BVI has an attractive legislative framework which represents in its independent judicial system based on English common law.
Prominent among key economic sectors such as tourism or international corporate services, a booming offshore financial sector has been witnessed in the BVI. By virtue of its supportive government, advanced offshore legal system and a strong existence of leading international accounting businesses, The BVI is relatively an ideal destination for those seeking offshore business and opening offshore bank accounts.
The BVI’s good location allows its companies favorable conditions to easily access to modern telecommunications by sea and air. Furthermore, this place has US dollar as the official currency, thus you can feel secure that there are no currency exchange control and no limits on cash flow movements in the BVI.
3. BVI Business company key features
Tax benefits: Registered as a BVI BC, your company would be exempt from the BVI corporate tax, capital gains, gift taxes, inheritance taxes, sales taxes and value added taxes, as long as your company conducts business outside BVI. All dividends, compensations, rents and royalties are also exempted from BVI taxes. In addition, the stamp duty which are levied on all transactions relating to transfers of any type of property of assets, shares, debt obligations or securities to or by a BVI BC are also tax free, other than land-ownership transactions in the British Virgin Islands.
Legal personality: Business Company is a legal entity registered in the BVI. It is deemed a separate legal person with the powers being the same as that of a natural person.
Minimal corporate requirement: Those who register a BVI Business Company are not burdened with overloaded duties to file compliance or corporate requirements, at the same time can save time and money that can be arisen from these requirements:
- No auditing requirement.
- No requirement for filing financial accounts. Accounting records do not have to be kept in the BVI.
- No requirement for appointment of BVI-resident director.
- No need to hold a regular Annual General Meeting.
- No requirement for filing annual returns or public disclosure of directors, shareholders, charges, loans or agreements.
Flexible corporate structure: The BVI company does offer a high level of flexibility in its corporate structure. Below are some of typical features of this type:
- Only one owner, one shareholder, and one director (all of whom may be the same person).
- Directors or shareholders of a BVI BC does not need to be BVI residents, they can be of any nationality.
- Meetings of Board of Directors may be held anywhere within or outside the BVI as deemed necessary by directors and by telephone, teleconference or other electronic means.
- A registered address and registered agent on the territory of the BVI are required for BC incorporation.
- Various choices regarding company designation are available such as the word “Limited”, “Corporation”, “Incorporated”, “Societe Anonyme” or “Sociedad Anonima” or the abbreviation “Ltd.”, “Corp.” “Inc.” or “S.A.” or “A.S.” etc. Note that the BVI BC may use and may be legally designated by either the full or the abbreviated form.
High level of confidentiality: This is one of the key features of the BVI’s BC. Your Business Company incorporation is required to include detailed information about each beneficial owner, shareholder and director. Be advised that the information of beneficial owners and shareholders would be kept confidential at the Registered Agent, while that of director is submitted to the Registrar. However, you can feel safe since it will not be subject to disclosure unless required to do so on an order of the Court, by relevant competitive authorities or under a mutual legal assistant request.
4. How to incorporate an BVI BC?
With a speedy and simple process, BBCIncorp Limited will help you easily have an BC registered in the BVI. We offer you an all-in-one service package that will include everything for you - a foreigner to set up a new Business Company from the beginning. Why BBCIncorp?
- Competitive price - only US$1099 for the basic package
- No hidden fee
- Only 3 working days for your BVI company incorporation
So, how to set up? >> Just 4 steps with BBCIncorp:
- Select your desired formation package. Find out more: Packages for the BVI BC Formation
- Make payment: online via Credit card, Debit Card, Paypal, or bank wire transfer.
- Collect and verify KYC documents
- Proceed the incorporation
TALK TO US NOW to get your business company in the BVI!