What is BVI?
The British Virgin Islands (BVI) was a colony of Great Britain until 1967 when they were granted autonomy. The BVI has since become popular among multinational corporations and individuals as a global business center. BVI company law bends over backward for businesses and allows them to access many exclusive financial services. The BVI has become a hotspot for international businesses and individuals because company formation is easier there.
BVI has been synonymous with offshore company formations for the past three decades. If you are wondering whether you should register BVI company, here are the benefits that encourage you to do so and the steps that you can follow to start your company.
What you will learn:
1. What are the Benefits of Setting Up a Company?
1.3 Emphasis on Business Confidentiality
1.4 Incorporation Cost and Annual Renewal
1.5 Diversity of Companies and Trust Structures
2. What are the Steps to Register your BVI Company?
3. Company Registration in the British Virgin Islands or Not?
4. Set Up your BVI Company with FastLane
What are the Benefits of Setting Up a BVI Company?
- Low Taxation Requirements
BVI has a “Territorial Tax System” which means IBCs (International Business Companies) that incorporate in the BVI but do business outside of the country are not taxed. Companies don’t have to pay taxes on items, including income, capital gains, customs duties, sales, profits, inheritances, dividends and interests. The BVI government only taxes IBCs when they operate locally, for example, if the company conducts business within one of the BVI islands or employs local citizens.
Because there is no withholding tax in the BVI, it has Tax Information Exchange Agreements (TIEA) with other countries. A TIEA between the BVI and other jurisdictions requires the BVI to disclose tax-related information when legally required.
- Easy Business Set-up
It is relatively easy to set up companies in BVI as opposed to other offshore jurisdictions. If you’re looking to set up an IBC, BVI is a favourable jurisdiction because you only need to name one shareholder and director, as opposed to other financial centres that require residency. Annual meetings are not required by law during company registration in the British Virgin Islands.
A company can issue shares in any currency, whether or not the recipient provides cash considerations and up to 50,000 shares. You don’t have to submit an annual return or undergo an account audit.
Structures of BVI company are easy to establish and keep up with because annual reporting and tax filings aren’t required now. This makes them more cost-effective. The strong legal professional workforce in the BVI makes it easy to set up a business.
- Emphasis on Business Confidentiality
The BVI has a good reputation for keeping business information private. There are no legal restrictions on the publicizing of the beneficial owner of a firm at this time, but the registered agent to which IBC registers must have access to it. The only record available to the public regarding this matter is the Register of Directors.
The only time business agents registered in the BVI are required to disclose company ownership is when they receive a lawful request, such as a TIEA from another jurisdiction.
The BVI also aids in confidentiality through the potential use of Trust Structures as owners for the IBC company. The BVI VISTA Trust is a company that provides trustee services for trusts, and one of these trusts owns an IBC.
- Incorporation Cost and Annual Renewal
Companies in BVI save money every year on required filings and taxes by basing themselves in the BVI, though there is an annual fee to keep up the company’s good standing.
As of Effective January 1, 2018, the government fees related to incorporating and maintaining an IBC that issues less than 50,000 shares have increased from US$350 to US$450 annually.
- Diversity of Companies and Trust Structures
The BVI offers a wide variety of corporations and trust structures, making it one of the most versatile financial centres globally. IBCs newly incorporated in the BVI can be registered with any of these names or suffixes:
- Limited/Ltd
- Corporation/Corp
- Incorporated/Inc
- Societe Anonyme/Sociedad Anonima (S.A.)
The BVI also permits the register BVI company with names in Mandarin Chinese, making it a popular choice for offshore clients from China Hong Kong, and Taiwan.
What are the Steps to Register your BVI Company?
It’s not difficult to incorporate in the British Virgin Islands if you follow these 4 easy steps:
For more details of the 4 steps to set up your BVI company and everything you need to know about setting up companies in BVI, read our blog, Things You Should Know Before Incorporating in BVI & Caymans!
Company Registration in the British Virgin Islands or not?
BVI is a desirable and popular destination for offshore company creation and passive business activities, as well as investment holding. Due to its simplicity of setup, territorial tax system, and range of structures, it is an appealing country for operating companies in BVI.
A BVI company is a viable option for you if you’re seeking a simple business to hold your assets instead of keeping them in your personal name.
Set Up Your BVI Company with FastLane
With 9-year experiences of combining innovation and technology to provide professional services to various businesses, FastLane has been supporting 500+ companies and offers company formation services to help entrepreneurs expand their businesses globally with a special focus on jurisdictions like Hong Kong, British Virgin Islands (BVI) and the Cayman Islands and more…
More Questions?
You may find the common question in our Ultimate Guide to BVI Incorporation useful in helping you make your decision!