The British Virgin Islands (abbreviated to "the BVI") are situated in the Caribbean Sea, about 80 kilometres (or 30 minutes' flying time) east of Puerto Rico. The BVI are one of the top offshore company financial centres in the world, a British overseas territory, where English is used as the official language.
Business transactions or activities carried out outside of the BVI deriving from the registration of a BVI company are not subject to taxation for BVI Business Companies. The BVI is favoured by financiers and bankers around the world for the incorporation of a BVI company due to its reliable commercial infrastructure and communication systems, as well as the extensive use of English and English Common Law. The developed and skilled professional service providers on the islands provide assistance in the incorporation of BVI companies, offshore companies, trusts, insurance companies and mutual funds. The BVI Business Corporations Act 2004 is the main corporate law which is applicable when setting up a BVI company.
Common uses for registering a BVI company are as group holding companies in the BVI, asset-holding SPVs (often real-estate or luxury goods) and investment funds and other regulated businesses.
Its open economy, combined with favourable tax legislation and a solid regulatory environment, has attracted a considerable number of non-resident investors.
The British Virgin Islands (BVI) are a popular Caribbean destination to register a BVI company due to their tax advantages, which include no capital gains tax, inheritance tax, gift tax, death duties, wealth tax, non-withholding income tax, exemption from capital transfer tax, no sales tax or VAT.
BVI IBCs do not pay income taxes or stamp duties. Non-residents of BVI are exempt from paying income tax on interest, dividends, rents and royalties, compensations and other amounts.
A British Virgin Islands (BVI) company is a very convenient vehicle for holding investments or real estate, as well as running a consulting or e-commerce firm.
Type of Company
A BVI corporation is referred to as a business company.
Time to Incorporate
It takes 1-2 working days to set up a company in the BVI.
Disclosure of Director / Shareholder Information / Beneficial Owner
Following the formation of a BVI company, once the BVI company setup process has been completed, information on the director, shareholder and ultimate beneficial owner is not accessible publicly. However, a copy of the Register of Directors and information concerning the ultimate beneficial owners must be filed with the Registrar of Companies.
BVI companies pay zero tax.
When you register a BVI company, it has to have at least 1 director, who may either be a natural person or a corporate body.
When you form a BVI company, it must have at least 1 shareholder, who may either be a natural person or a corporate body.
Following a BVI company incorporation, there is no audit requirement for accounts.
Filing of Accounts
A company that is registered in the BVI is required to prepare accounts, However, the accounts of a BVI company are not accessible to the public.
Filing of Annual Return
A company registered in the BVI is not required to file a tax return.
The above does not constitute legal or other professional advice. Connor Corporate Services Ltd does not accept any responsibility, legal or otherwise, for any errors or omissions.