British Virgin Islands

 

Why incorporate in B.V.I?

Since the adoption of the British Virgin Islands International Business Companies Ordinance in 1984, the BVI IBC has attained revered status in the offshore services industry. With more than 600,000 total incorporations and more than 5000 new companies registered every month, BVI is by far the most popular offshore tax haven. The dominance of the British Virgin Islands is evidently internationally recognized as the term “BVI’s” are now used as a verb in reference to International Business Company formations.

The British Virgin Islands (BVI) are a British overseas territory located in the eastern portion of the Virgin Islands Archipelago in the Caribbean Sea. The Virgin Islands are part of the Leeward Islands of the Lesser Antilles. The United States Virgin Islands comprises the western portion of the archipelago. Technically the name of the Territory is simply the “Virgin Islands”, but in practice since 1917 they have been almost universally referred to as the “British Virgin Islands” to distinguish the islands from the American Territory.

The BVI Business Companies Act replaces the popular and highly successful International Business Companies Act.  Highlights of B.V.I include:

  • Exemption from all local taxes for BVI Business Companies conducting business outside of the BVI
  • Well developed financial services industry
  • Common law legal system based on English law
  • Well developed professional infrastructure
  • Excellent telecommunications system
  • Easy air access to North America and Europe
  • No foreign exchange restrictions.

Taxation

  • BVI companies and all amounts paid by them to non-residents are exempt from all local taxes and stamp duty. Upon the sale or transfer of shares of a BVI business corporation to a third person, capital gains tax is not payable under the BVI law.
  • BVI companies are not required to file tax returns or any other type of report or declaration to the BVI government regarding foreign-source income.

Privacy and Disclosure

  • Information about beneficial owners, shareholders, directors and officers is not filed with the BVI government, and not available to the public.

The normal authorized share capital in B.V.I is US$ 50,000 divided into shares with or without par value. The share capital may be expressed in any currency. The minimum issued capital may be one share of no par value or one share of par value. Essentially any share capital is permitted, but additional government fees apply for the use of No Par Value Shares ($50) and authorized capital over $50,000 or equivalent ($700).

 

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