Background
The British Virgin Islands (BVI) joined the world of offshore banking in the mid 1980’s. They enacted British Virgin Islands International Business Companies Ordinance in 1984. The islands have become such a popular destination for international companies that many people refer to these companies as just “BVIs” rather than BVI companies. In 2004, the BVI Business Companies Act removed the distinction between offshore and local companies in the islands. It eliminated any discrimination between the two types and making a BVI offshore company more accessible worldwide.
The BVI have strong political stability and a low international profile. As such, it makes for an ideal location for an offshore tax haven. BVI has an independent judicial system based on English common law. A significant portion of the country’s gross domestic product comes from offshore financial centres. The U.S. dollar is the official currency.
Incorporation Process and Timeline
| International Business Company (IBC) | Holding Company | BVI Fund | BVI Trust | |
| Minimum number of directors | 1, certified documents needed | 1, certified documents needed | 1, certified documents needed | 1, certified documents needed |
| Minimum number of shareholders | 1, certified documents needed | 1, certified documents needed | 1, certified documents needed | 1, certified documents needed |
| Local Presence (director/ shareholder/ officer) | No | No | Yes | No |
| Physical registered office address requirement | Yes | Yes | Yes | Yes |
| Maximum Foreign Shareholding | 100% | 100% | 100% | 100% |
| Minimum Paid Up Share Capital | USD 1 | USD 1 | USD 20,000 | USD 1 |
| Incorporation Timeline | 1 month | Less than a month | 1 month | Less than a month |
| Public Register of Shareholders and Directors | No | No | No | No |
| Regulator | BVI FSC | BVI FSC | BVI FSC | BVI FSC |
Taxation and Accounting
| International Business Company (IBC) | Holding Company | BVI Fund | BVI Trust | |
| Corporate Tax | 0% | 0% | 0% | Inapplicable |
| Auditor Requirement | No | No | No | No |
| International currency control on remittance | No | No | No | No |
Operations
| International Business Company (IBC) | Holding Company | BVI Fund | BVI Trust | |
| General Activity | Products and Services | International holding/ trading | Logistics/ Manufacturing | Joint Venture |
| Economic Substance Requirement | Depends on business nature | Depends on business nature | Depends on business nature | Depends on business nature |
Corporate Bank Account
| International Business Company (IBC) | Holding Company | BVI Fund | BVI Trust | |
| Corporate Bank Account Available | Yes | Yes | Yes | Yes |
| Bank Account Opening Timeline | 2 – 4 months | 2 – 4 months | 2 – 4 months | 2 – 4 months |
BVI offers the following benefits:
- No imposed mandatory corporate governance requirements, allowing companies to create their own model.
- Tax haven. No extra taxation to investors who are already paying in their home country.
- Simple and straightforward company formation and operations. For example, there is zero corporate tax on annual net profits, no capital gains, no tax on interest and dividends.
- Only one shareholder and director is needed to set up a company in BVI. They can be of any nationality. Corporate shareholders are also allowed.
- The BVI has reacted positively to both EU and OECD’s efforts to clamp down on tax evasion, BVI was soon added to the OECD white list. Overall, BVI holds a better reputation compared to other offshore jurisdictions.
BVI Company Registration Guide
BVI Financial Services Commission (FSC) The December 2001 enactment of the Financial Services Commission Act, 2001 established the British Virgin Islands Financial Services Commission as an autonomous regulatory authority responsible for the regulation, supervision, and inspection of all financial services in and from within the BVI.
Regulated activities which are considered financial services include: insurance, banking, fiduciary services, trustee business, company management, investment business, and insolvency services, as well as the registration of companies, limited partnerships and intellectual property.
Enigmatig Services in BVI
With more than a decade of experience, our team at Enigmatig is here to meet your business needs beyond just company formation. We also provide the following services in BVI:
- Company formation
- Obtaining Tax Residency Certificate – on completion of 1 financial year*
- Assistance in Business Management
- Corporate Management advisory
- Real Estate advisory for both residential and commercial properties
- Provision of registered agent and registered address
- Provision of company management, directorship, and shareholding services
- License application assistance
- Onshore/ Offshore bank account introductions and applications
- Virtual office services and other corporate services
- Nominee services
Application Process:
- Submit your interest here
- Our Offshore Formation Specialists will reach out to you for an in-depth discussion
- A customised proposal will be sent to you upon uncovering your needs,
- Upon the proposal confirmation, we will require the of the following information for the application
- Proof of Identity
- Proof of Residence (within the last 3 months)
- director(s),
- shareholder(s) and
- beneficial owner(s)
Once the above has been approved, we will send you an invoice for payment.
The incorporation process will commence upon receiving payment
Enigmatig deals directly with the authorities instead of the use intermediaries in your application process. In this way, we are able to ensure our prices remain competitive while you are ensured of utmost privacy and care in your application.