Forming a company in the BVI
A high level of stability and one of the largest economies in the Caribbean, the British Virgin Islands or BVI are under the supervision of the United Kingdom and consist of 36 islands and islets. Covering an area of ??153 sq km, its population is 22,700, most of which are concentrated in ROAD TOWN on the island of Tortola.
The BVI remain a place attractive to Offshore companies with no image problem, offering services, consulting and other intangible services, as well as for companies whose customers are overseas.
The BVI also offer the services of a nominee director enabling you to remain anonymous at the Public Registry, as well as a nominee shareholder for the transparency of the shareholders.
Whhat to remember
The BVI has long been a key destination for registering offshore companies with over 160,000 registered companies. However, this trend has declined considerably since 2005 and especially since the crisis began since that the image of a company is taking on growing importance. The tropical and exotic image of the BVI is sending the founders of offshore companies to destinations such as Hong Kong where the economic reality is far more obvious with 12 million inhabitants as opposed to only 10,000 in Tortola.
N.B. it is important to consider the exotic image of this jurisdiction. Indeed, its location may lead to a reluctance on the part of customers, partners or suppliers. If the image of your company is a dominant factor for your business, other jurisdictions such as Hong Kong, Gibraltar, London or Dubai should be considered for their notoriety. We are available to help you decide what is best for your project.
Corporate Income Tax in the British Virgin Islands is 0%. Under the constitution, companies are not taxed and there is therefore;
No corporate income tax
No customs duties
No wealth tax
Services are therefore invoiced exclusive of tax.
Due to the complete lack of taxation, bookkeeping in the BVI is not mandatory.
The formation of an offshore company requires a number of essential elements listed below. These are always included when setting up a company to guarantee adequate operations.
Type of company
The most common form is the BVI is the I.B.C. – International Business Company – which is a type of limited liability company with capital.
The company headquarters must be registered locally in the BVI and will appear on all mail and the company headed note paper. This allows you to receive mail at the address indicated. There is also an optional virtual office service available complete with telephone number and personalized standard.
The standard capital in the BVI is 10,000 USD, however it is not a requirement to transfer or release the capital within a specified period which enables you to set up a company with a capital of 1 EUR.
A multi-currency bank account will be opened for your business with Internet access and a Visa or MasterCard ATM card and multiple cards can be added – see our Additional cards pages for more information on this subject. An additional anonymous Visa card can be sent on request by the bank in charge of opening the account.
The Director may be of any nationality. A Nominee Director service offering additional privacy is the right approach for any company formation.
It is possible to appoint a nominee shareholder. Only one shareholder is sufficient. A BVI company may be held by a holding company of any country
The easiest way to have your company set up in 24 hours is to choose a Ready-made company from a list of names of existing companies incorporated in advance to minimize delays. A period of 5 days plus postage is needed to set up a custom company
Companies in the British Virgin Islands may have a Holding role and may hold movable or immovable assets as well as company stocks and shares.
The company has to be renewed each year, which involves paying a stamp duty, renewing the domicile of the corporate headquarters and the reappointment of the Nominee Director and Shareholder.
Conditions for forming a company
The final condition is that the business activity is legal both in the BVI and in the country in which the business is conducted. Forming an offshore company should not and cannot be used to legitimize an illegal activity.
The regulatory authorities in the BVI do not authorize financial activities, banking, betting, online gambling, and insurance, without an existing license