What Can You Do with an Offshore Company in BVI?
Those that decide on company formation in BVI (British Virgin Islands) usually use the entity for purposes of e-commerce, cryptocurrency, custody of real estate (not within BVI), holding IP rights, inheritance purposes, and other forms of trade. Those wishing to operate in these areas choose BVI because of the zero tax rate and the high level of confidentiality.
Background & General Outline
The British Virgin Islands is a former British colony, located in the Caribbean. Today they remain as a British Overseas Territory and BVI citizens also hold British nationality. The current population is some 35,802 and the official language is English.
BVI has long been a popular jurisdiction for offshore incorporation. In fact, there have been over 800,000 companies registered there since 1984, making it one of the most in-demand jurisdictions in the world. In fact, financial services are one of the biggest sectors in the BVI economy, accounting for up to 60% of the GDP.
Political Structure & Legal System
BVI has a long history of peace, stability and democracy. It became a British Crown Colony in 1862 and achieved complete self-rule in 1981. Executive authority is exercised by the Cabinet under the leadership of the Prime Minister.
The BVI Business Companies act is in accordance with English common company law principles. In matters that end up in court, BVI will apply the principles of British case law, and case law from other common law jurisdictions.
Name Restrictions for Company Formation in BVI
Back in 2011, authorities in BVI issued restrictions on the type of name an offshore company in BVI could use. These include any word that suggests affiliation with a regulated or licensed industry, anything offensive, or any word that suggests the patronage of the government or monarchy. As with other jurisdictions, you cannot use names that are the same as or similar to other entities registered in BVI.
If you decide to go for company formation in BVI you need to be aware of certain restrictions on the activities you can carry out. For example, a BVI company cannot own real estate or trade inside the BVI. It is also not allowed to carry out activities in certain sectors including banking, insurance, or reinsurance.
Taxation in BVI
Any offshore company in the BVI is not subject to any taxes as long as all activities are carried out outside of the jurisdiction. There is also no capital gains tax or withholding tax.
Double Taxation Treaties
An offshore company in BVI can enjoy double tax treaties with the UK, Sweden, Denmark, and the other countries of CARICOM. BVI also signed Tax Information Exchange Agreements with a number of countries including the UK, Australia, Belgium and the Netherlands. Further agreements are currently underway and ongoing.
Accounting & Financial Statements
For company formation in BVI, there is no requirement for annual reporting or auditing. You also do not need to present any financial statements to the authorities. It is required that accounts and records are kept and are stored at the office of the registered agent. The records must show company transactions and present an accurate overview of the company standing.
Disclosure of Beneficial Owner
When you register an offshore company in BVI you are not required to disclose the beneficial owners to the authorities. Instead, you have to provide this information to the registered agent. They will then disclose their own identity to the authorities, ensuring a high level of privacy for beneficial owners. This information is not publicly available. There is also the option of using nominee directors and shareholders for an added layer of privacy.
Capitalization Requirements for Company Formation in BVI
There are no minimum requirements for capital when you incorporate an offshore company in BVI. Standard share capital is suggested at USD 50,000 but can be changed to suit each individual’s requirements.
There are no exchange control restrictions or limitations in BVI.
How Much Does an Offshore Company in BVI Cost?
You can incorporate your Offshore Company in BVI for as little as €1,550 with our Formation Package. You can also benefit from our special renewal package and additional optional services. To get full price details, related documents and services click on the button below:
Contact Us for Company Formation in BVI
Offshore incorporation in BVI is a smart move for anyone working in e-commerce, tech, or trade. Great fiscal incentives, a smooth incorporation process, and high levels of confidentiality create an extremely favourable business environment. Contact us today to get your offshore company registered in BVI.
More Locations to Incorporate Your Company
Not sure about BVI? No problem! There are several other locations to consider. Select any of the countries below to learn more:
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