British Virgin Islands (BVI) is an archipelago of islands, located on the border of the Caribbean and Atlantic Ocean. The basis of the economy is: an industry, an agriculture and a tourism, the financial sector is also important. Registering a company in the BVI offers many advantages and incentives for foreign entrepreneurs.
BVIs are popular among entrepreneurs from all over the world due to these advantages:
- There is a principle of territorial taxation.
- An economic and political stability.
- Favorable conditions for doing business.
- A country with a high standard of living.
- A state has signed a document on the avoidance of double taxation with countries: Japan and Switzerland.
- No capital requirements and exchange control.
If you decide to register a company in the British Virgin Islands, then this can be done in such legal form as: IBC.
Before setting up an IBC in the BVI, we recommend you to familiarize yourself with all features of this legal form:
- At the end of the name one of these words must be presented: “Limited”, “Incorporated” or “Corporation”.
- An authorized capital is fixed by a founder of an enterprise, averages around $50,000.
- There are opportunities to use nominal services, to issue bearer shares.
- It should be noted, that all companies, that issue bearer shares, must transfer them to the trust management of a specialized company, that has a license.
Opening a company in the BVI is accompanied by a fulfillment of requirements of the Regulator:
- to register a unique name and an office space (IBC companies cannot own real estate in BVI);
- an annual state renewal fee is $350 (if the authorized capital is up to $50,000), $1,100 (if the authorized capital is $50,000 or more);
- to obtain a license in the BVI, if an enterprise is engaged in banking, insurance or trust activities;
- to prepare a list of standard documents, notarized and translated into the appropriate language:
- documents, confirming the identity of each shareholder/director of the enterprise (copies);
- an application for registration, which contains the information about activities of the company and its name.
- For entrepreneurs, who want to register an IBC in the BVI, an individual presence is not required.
After registering an IBC in the British Virgin Islands, a package of documents will be provided to a legal entity:
- a certificate of incorporation;
- a decision on the appointment of leading persons;
- registries for shareholders and beneficiaries;
- a Company's Charter and constituent documentation (MOA);
- an order for the issue of shares;
- a stock license.
Establishing an IBC in the BVI provides for such restrictions:
- It is forbidden to trade, to have real estate in the British Virgin Islands.
- It is forbidden to conduct any financial activity, that involves a relationship with a banking or insurance industry.
If you violate the laws of the BVI, the company will be fined $10,000.
A taxation and reporting
- Foreign investors, who do not operate in the country, are exempted from a corporate tax, a VAT, etc.
- Companies are not required to conduct an audit, maintain/file financial statements.
- Financial statements can be stored in any country.
Registering a company in the BVI takes from 4 weeks.
A preparation and a delivery of documents takes about 10 days.
Specialists of IQD Consulting will provide you with professional advice on registering an enterprise in the BVI.