The British Virgin Islands (BVI) is a cluster of islands located in the Caribbean territory right to the east of Puerto Rico. A popular destination for travellers from all over the world, BVI’s tourism industry plays a key part in keeping the economy afloat.
Apart from its pristine beaches and turquoise waters, the BVI is also known for its offshore financial industry. The industry thrived when the International Business Companies Act was enacted and attracted entities to incorporate in the BVI.
BVI-incorporated firms, also known as Business Companies (BCs), are known for the ease and efficiency of its incorporation process, cost-effectiveness, tax-exempt status, and the high level of confidentiality it offers business owners. Below are the benefits of incorporating a firm in the BVI:
1. Minimum Requirement
The process of registering a company in the BVI is efficient and straightforward. The incorporation of a business usually takes only 3 to 5 business days. It has no minimum capital requirement. In order to register, a Company Director and Shareholder from any nationality and of legal age must be appointed. These positions can be held by any legal entity be it an individual or a corporation.
Business Companies are completely legally exempted from income taxes and any stamp duties. The shareholders can enjoy freedom from any income taxes on payments that are received from the firm. Additionally, shareholders do not have to pay capital gain taxes, estate duties and capital transfer taxes.
3. Maintainance Cost
Individuals and entities who register their business in the BVI will find that operational and maintenance costs are minimal. For one, yearly financial statements and tax returns submission is not required. A company can function without appointing an auditor or holding Annual General Meetings. If company stakeholders decide to hold a meeting, they are not required to conduct it in the BVI.
4. Asset Protection
A BVI Business Company has the authority to move domicile therefore insuring a maximum asset protection. The directors of a Business Company may protect their assets by transferring it to another party be it an association, a foundation, a trust partnership, or another firm. The directors may also join their assets with other firms or international corporations in another accommodating jurisdiction.
Privacy can be assured for entrepreneurs who register a BVI Business Company. The stakeholders’ and the business’ particulars are protected by a non-disclosure policy. The company’s resolutions are kept confidential at the Registered Agent’s office. While the registered address of the Business Company is shown, the share registers of the company may only be viewed by members through approval from the company directors or through a court order. Only the Certificate of Incorporate and Memorandum and Articles of Association are made available on public record.
There are nearly a million Business Companies incorporated in the BVI, a testimony to the ease and effectiveness of registering a business in the BVI.