Nearly 41% of offshore companies worldwide have been formed in the British Virgin Islands, making the BVI one of the world’s leading offshore financial centers. This is due to its fast registration process, complete confidentiality, the language of legislation (English) and the currency (US dollar).
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Why do companies set up in BVI?
A BVI company can be incorporated quickly, with a flexible organisational structure and minimal financial reporting requirements. BVI companies are ideal for startup companies as they can be operated from anywhere in the world and there are no restrictions on where a BVI company can carry out its business.
What are the advantages of a BVI company?
The main advantages are: (a) total absence or minimum levels of taxation; (b) confidentiality, due to no sensitive personal information available on public file; (c) corporate flexibility: no paid-up capital requirements, no requirement to state operational objects, minimum conditions on directors and shareholders,
How many offshore companies are in BVI?
750,000 offshore companies
Setting up a company in British Virgin Island (BVI)
British Virgin Island (BVI) is situated in the Atlantic Ocean and only 96 km east of Puerto Rico with a population of 25,000. It is the leading offshore jurisdiction with over 750,000 offshore companies incorporated since 1984.
Are the British Virgin Islands a tax haven?
Benefits of BVI as a Tax Haven
A BVI offshore company pays zero income tax. There is no British Virgin Islands tax on capital gains tax, nor are there gift taxes, inheritance taxes, sales taxes, or value added taxes.
What is the purpose of BVI?
The BVI aims to provide “light but effective” regulation to minimise unnecessary regulatory burdens. The most common type of regulated business is investment funds, for which specific carve-outs exist to minimise the regulatory burden for low risk investment funds.
What is BVI offshore company?
An “offshore company” is generally understood to be a corporation registered in a “tax haven” – low-tax or zero-tax country. Since that time the BVI offshore company has attained a model status in the offshore services industry.
What is the difference between BVI and Cayman?
Differences between BVI vs Cayman Islands
However, there are some differences between BVI and Cayman:Although both countries require companies to audit their investment funds, BVI does not require companies to follow local audits while Cayman requires companies engaged in funds to be audited on a local level.
How much does it cost to set up a BVI company?
1. BVI incorporation fees
| Type of Company | Service fee for 1st year | Government fee & Service charged |
|---|---|---|
| Business Company (BC) | US$ 769 | US$ 925 |
What Is a BVI holding company?
Holding business entities are considered as one of the famous offshore business structures that stands as a massive offshore vehicle that allows business investors to earn high-end profits by investing in popular offshore destinations.
Does BVI company need to be audited?
A BVI company is not required to file statutory financial statements. Audit – while the Act does not provide for an annual audit or the appointment of auditors, a company is at liberty to provide for the appointment of an auditor in its memorandum or articles of association.
Do BVI companies have to prepare accounts?
There are no strict reporting requirements in BVI and an IBC does not need to prepare financial statements or company accounts. The company should maintain only those accounts or records which the company directors consider to be necessary for their own use; and these can be kept anywhere in the world.
How many banks are there in BVI?
six commercial
Banks in the British Virgin Islands consist of six commercial banks and one restricted bank, as of 2012. The island is a major player in the global offshore financial services industry.
Is BVI blacklisted?
In a resolution adopted in January 2021, Parliament recalled the urgent need to update the EU list of tax havens. This comprises a blacklist of just 12 jurisdictions and a greylist of nine. Interestingly, the BVI is not on either list.
Can a British citizen move to the BVI?
You may be wondering if British citizens may move to the British Virgin Islands. While they can move to the British Virgin Islands, they must request for long-term permission to stay just like any other foreigners, even if they have a UK passport.
Do U.S. Virgin Islands pay US taxes?
The U.S. Virgin Islands uses a mirror system of taxation, also known as the “Mirror Code,” meaning that USVI taxpayers pay taxes to the Virgin Islands Bureau of Internal Revenue (“BIR”) generally to the same extent as U.S. taxpayers would under the Code to the U.S. Internal Revenue Service.
Are BVI companies regulated?
The BCA regulates the incorporation and operation of all types of BVI companies, including those limited by shares, those limited by guarantee, unlimited liability companies, restricted purpose companies (also known as special purpose companies or SPVs) and segregated portfolio companies, whether their business is
Where are BVI companies registered?
The Registry of Corporate Affairs primarily administers the BVI Business Companies Act, and is responsible for ensuring that entities doing business in and from within the Territory are duly registered, and that the Register of Companies is properly maintained.
How many companies are incorporated in BVI?
Situated approximately 80 kilometres from the coast of Puerto Rico, the British Virgin Islands (BVI) today is a well-known jurisdiction for corporate trusts and offshore company set-ups. There are currently more than 500,000 foreign businesses incorporated in the BVI.
How do I start a business in the Virgin Islands?
To get started:
- Create a business plan.
- Register your trade name and/or corporation with the Office of the Lieutenant Governor.
- Select a good location and obtain a copy of an unsigned lease or letter of intent from the owner.
- Obtain a business license from the V.I. Department of Licensing and Consumer Affairs (DLCA)
Is Grand Cayman a British Virgin Island?
The Cayman Islands are a British overseas territory, listed by the UN Special Committee of 24 as one of the 16 non-self-governing territories. The current Constitution, incorporating a Bill of Rights, was ordained by a statutory instrument of the United Kingdom in 2009.
