Rikvin

The British Virgin Islands (BVI) is one of the world’s leading offshore financial centers, with a majority of the world’s offshore companies, nearly 41%, being located in BVI. Offshore financial services sector contributes a very significant portion to the country’s gross domestic product therefore the local government takes profound interest in sustaining the competitiveness of BVI as a offshore jurisdiction and ensures that the legislations facilitate the international Business companies to thrive in the territory. BVI Business Companies Act enacted in 2005 has successfully streamlined the already outstanding BVI offshore legislation.
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Features of a BVI Business Company

• A BVI company has separate legal personality and the same powers as a natural person
• A BVI Business Company may be incorporated as a company limited by shares, a company limited by guarantee (with or without authorization to issue shares), an unlimited company (with or without authorization to issue shares), a segregated portfolio company and a restricted purpose company.
• No minimum capital is required
• Shares can be issued with or without par value and in any currency as allowed in the company’s Memorandum and Articles of Association
• Registered shares, bearer shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights are allowed
• Bearer shares must be held by qualified custodians
• Nominee shareholders are allowed
• At least one director who may be a natural person or body corporate and can be of any nationality. No resident director is required
• Minimum of one shareholder who can be a natural person or body corporate and of any nationality
• Shareholder, director and company secretary can be one and the same person
• Appointment of company secretary is optional
• Records of financial transaction can be kept in any place (not necessarily BVI) as determined and agreed by the directors

Merits of a BVI Business Company

• A BVI business company is exempt from the local tax
• There are no stamp duties for transactions in respect of its shares, debt obligations or other securities
• There is no tax on dividends, interest, rents, royalties or compensations
• No estate, inheritance, succession or gift tax is payable
• All transactions and instruments relating to transfers of any type of property or assets are exempt from the stamp duty.
• No obligation to prepare or file financial statements however, must maintain sufficient records to explain transactions and financial position of company
• Assets are protected from confiscation or expropriation orders or similar actions by foreign governments.
• US dollar is the official currency in the BVI, hence there is no currency value fluctuations or artificial manipulations and control.
• Confidentiality is one of the key benefits of the BVI Business Company as details of the company’s beneficial owners, directors and shareholders are not part of public record. Such records can be accessed only by shareholders
• Being a British Overseas Territory, the BVI ensures outstanding political stability and commands a clean reputation.
• The shareholders’ or directors’ meetings need not be held in the British Virgin Islands and there is no requirement for an Annual General Meeting.
• BVI is an independent country with a fairly high standard of living and is easily accessible with modern telecommunication system and is also strategically located on a convenient time zone.
• Redomiciling of foreign companies to/from BVI is allowed

Limitations of BVI Business Company

• A BVI Business Company may not conduct business with BVI residents
• It cannot own real estate in BVI apart from leasing office space
• It cannot provide registered office or agent facilities for companies incorporated in the British Virgin Islands
• Companies engaged in services such as, Banking, Trust Business, Insurance or reinsurance companies or agents or brokers, Company management services or mutual fund administration services, require special license
• It cannot offer its shares for sale to the public
• Benefits of Double Taxation Avoidance Treaties though limited (with Switzerland and Japan) are not available to BVI business companies

More resources on BVI Offshore Company Incorporation:

• Complete Guide on BVI Offshore Company Incorporation
• Download BVI Offshore Company Incorporation Guide
• BVI offshore company formation services and fees