BVI - British Virgin Islands

island Company Formation

 

Why form a corporation in BVI?

The main reasons for BVI Company formation are as follows:

 

  • Maximum security of assets includes the ability to transfer domicile

  • The directors may protect the assets of the IBC for the benefit of the IBC, its creditors and its members by transferring its assets to another company, trust, foundation, association or partnership; and merge or consolidate with any other company or foreign corporation in another accommodating jurisdiction.

  • International Business Companies are exempt from all local taxes and stamp duty

  • Maximum, confidentiality and anonymity are provided by BVI bearer shares being available by the absence of any requirements to file any organizational or accountancy information with the Registrar of Companies, (other than the memorandum of Articles of Association), and by share registers being available for inspection only by company registered shareholders or by order of the BVI court.

 

Ease of operation, maintenance and control are facilitated by flexible corporate features. IBC's can re-quire and re-issue their own shares. Shares can be issued for a consideration other than cash, with or without par value, and be denominated in any currency. Only one subscriber and thereafter one shareholder is required. Single directorates are permitted. Shareholders' and directors' meetings are not confined to the British Virgin Islands. Books of account, records and minutes can be maintained elsewhere. There is no statutory requirement to hold annual general meetings. No distinction is made between public and private IBC's. Incorporations can take place within one or two days. Computerized access for Registered Agents to remotely reserve preferred names is now being finalized.

BVI - Wide Range of applications

A wide range of application are possible with a BVI Company, including: investment, property holding, financial management, trading and copyrighting and/or licensing. Unlike many other jurisdictions, there are no disclosure requirements, nor any minimum capitalization regulations, nor any prohibitive license fees pertaining to trust and trustee companies for application in private-label trust company, unit and mutual fund situations.

BVI Formation - Cost effective

Formation is cost effective when compared with the more traditional centers such as Bermuda, Cayman, Liechtenstein, Luxembourg, and Switzerland. Fees are similar to Liberia and Panama., Plus the BVI Company offers greater offshore asset protection benefits and the BVI government has greater political stability.

BVI - Asset Protection

A BVI Company is a premier choice for asset protection and financial privacy.

Progressive legislation

The British Virgin Islands IBC legislation was introduced in 1984 but was developing and subsequently amended taking into consideration the changes required by the persons providing BVI offshore services.

Efficient Incorporation/Registration

Under normal circumstances, BVI Corporations can be incorporated/Registered within 3 working days.

Flexibility in company structure of an offshore British Virgin Islands Company.

  • Only one director or shareholder required for the company formation.

  • Shareholder(s) and director(s) may be the same person.

  • The shareholder(s) and director(s) can be a natural person or a corporate body.

  • There is no requirement of appointing local shareholder(s) and director(s) for British Virgin Island Companies.

  • There is no requirement of resident secretary.

Privacy for identity of principals

The BVI incorporation documents do not carry the name or identity of any shareholder of director. The names or identities of these persons do not appear in any public record.

Confidentiality

Shareholder(s) and director(s) nominee services are allowed to ensure confidentiality of beneficiaries.

Shares and capital requirements For British Virgin Islands Corporations.

  • Shares can be issued with or without par value;

  • Shares may be issued in any recognizable currency or in more than one recognizable currency;

  • Shares may be paid up in cash or through the transfer of other assets or for other consideration;

  • The standard share capital is USD $50,000 or an equivalent in another recognizable currency.

Minimum capitalization

The minimum paid in and issued capital may be one share which is fully paid.

Taxation of the BVI IBC on Profits

According to the BVI IBC Act of 1984, the offshore companies are exempted from all the taxes for the period of 20 years.

Maintain company books and records in BVI

BVI Companies records and accounts do not have to be held or filed with the authorities. If the shareholders, directors or officers decide to maintain such records or accounts, these may be held anywhere in the world.

Annual financial statements and other records

  • There is no requirement for any financial statements accounts or records to be kept for a BVI Company;

  • If it is found to be desirable or necessary by the director(s) or shareholder(s) these records may be held anywhere in the world.

Meetings of shareholder(s) and director(s)

  • There is no requirement for meetings of shareholder(s) and/or director(s)

  • If meetings of shareholder(s) and/or director(s) are desirable these meetings can be held by telephone or any other electronic means of communication providing that all participants can clearly hear each other.

  • Meetings if thought necessary can be held anywhere in the world.

Doing business with BVI residents and companies

A company in the BVI is restricted from doing business with BVI residents or companies except where:

  • It makes or maintains professional contact with solicitors, barristers, accountants, bookkeepers, trust companies, management or secretarial companies, investment advisors, or other similar persons or entities carrying on business within the BVI.

  • It prepares or maintains books and records within the BVI (if it decides to keep such books and records).

  • It holds within the BVI, meetings of its directors or members (if it so desires).

  • It holds a lease on property for use as an office from which to communicate with members or where books and records of the company are prepared or maintained (if so decided).

  • It holds debt obligations, shares or other securities in British Virgin Island IBCs or any other locally incorporated company.

  • Shares, debts obligations or other securities in the company are owned by any person resident in the BVI or by any BVI IBC or any other locally incorporated company.

Restrictions

There are no restrictions on doing business outside of the BVI by IBCs except illegal activities or such activities that require additional licensing such as: provision of the banking services, services of the insurance and trusts.