The British Virgin Islands (BVI) is an archipelago located in the Caribbean and Atlantic Ocean. The key sectors of the BVI economy include agriculture, tourism and financial services. Registering a company in the BVI provides foreign investors with a plethora of advantages.
Some of the main advantages include:
- High level of confidentiality.
- Territorial taxation principle.
- Economic and political stability.
- Favorable conditions for doing business.
- High standards of living.
- No double taxation (with Japan and Switzerland).
- No capital requirements and exchange controls.
The most common form of business organization in the British Virgin Islands is IBC. If you wish to register an IBC in the BVI, you should keep in mind the following:
- The name of your IBC must contain “Limited”, “Incorporated” or “Corporation” at the end.
- An IBC’s paid-up capital is determined by a founder and normally set at $50,000.
- Establishing an IBC privies its founder with an opportunity to use nominal services or issue bearer shares.
- IBCs issuing bearer shares must transfer them to a licensed company for trust management.
Opening a company in the BVI requires compliance with the following criteria:
- registering a unique name and office space (IBC companies cannot own real estate in the BVI);
- paying an annual state renewal fee of $350 (if the authorized capital doesn’t exceed $50,000) and $1,100 (if the authorized capital is $50,000 or more);
- obtaining a license in the BVI if an IBC is engaged in the provision of banking, insurance or trust services;
- preparing a list of standard documents (notarized and translated into the required language):
- preparing documents confirming the identity of each shareholder/director of an IBC (copies);
- filling out and submitting a registration application containing information about an IBC’s activities and its name.
Being physically present isn’t required for entrepreneurs seeking to register an
Establishing an IBC in the BVI imposes the following restrictions on its founders:
- an IBC is forbidden to engage in trading activities or own real estate in the British Virgin Islands.
- an IBC is forbidden to conduct any financial activity involving a relationship with the BVI’s banking or insurance sectors.
Violating the laws of the BVI is punishable by a fine of $10,000.
Taxation and Reporting
- Foreign investors that do not operate in the country are exempted from a corporate tax, a VAT, etc.
- There is no requirement for conducting an audit and maintaining/filing financial statements.
- Financial statements can be stored in any country.
Registering a company in the BVI takes up to 4 weeks.
Preparing and submitting documents takes about 10 days.
Need professional advice on registering an enterprise in the BVI? Why not contact YB Case?