A country where you can establish your offshore business and never have to worry about paying any taxes to the country has been one of the most alluring factors for any businessman. According to OECD (Organisation for Economic Co-operation and Development), a tax haven is a jurisdiction which actively makes itself attractive to business owners seeking more favourable tax treatments than those available in their home country.
Such countries offer a great deal of little to no-tax liability to individuals or businesses. One such tax haven is the British Virgin Island in the Caribbean; a region where most of its nations boast for its tax security and strict financial privacy laws. If you are planning to start an offshore company, you can count on the British Virgin Islands.
The British Virgin Island as a Tax Haven
The British Virgin Islands, or shortly known as BVI, is one of the popular offshore jurisdictions is a group of approximately sixty islands in the Eastern Caribbean. Sixteen of such islands are inhabited and the largest of which, Tortola is the capital and commercial centre of BVI.
The economy of BVI is considered to be the most prosperous in the Caribbean region, the majority of which comes from financial services, prominently offshore financial services and tourism. Financial services make up the major economy with over 50%, and most of the territory’s income comes from licence fees paid by offshore companies to the government.
The territory does not impose any taxes on companies plus it has no tax treaties with other nations which thereby protect your financial privacy of bank account and make it the ideal place to set up your BVI offshore bank account. British Virgin Island Offshore companies pay no taxes on annual capital gains, gift tax, inheritance tax, value-added tax, sales tax, or corporation tax. The only monetary payment they will have to make is the annual business license fee to the government of the country. These factors of beneficial tax laws and financial privacy where your financial transactions are kept private make BVI one of the most significant tax-haven jurisdiction in the world.
The Taxation in the BVI is relatively simple and most notable for its subjection to no tax imposed on companies and individuals. However, there’s a payroll deduction of up to 8% for employees with 12% to 14% paid by employers for any salaries above $10,000.
Advantages of Offshore Company Formation in the British Virgin Islands
The BVI Business Companies Act governs the offshore company formation in the BVI enacted in the year 2004. The territory is so famous for offshore company registration that it accounts to nearly 40% of the world's total offshore companies with over 600,000 companies operating.
- Like mentioned earlier, a BVI offshore company pays zero income tax. No tax on capital gains, gift tax, inheritance tax, sales tax, value-added tax, or corporate tax.
- The territory is a prominent tourist spot with a subtropical climate and pristine waters.
- The most widely popular and accepted US dollar is the official currency in the territory with English as its official language.
- It is also backed by a politically stable government. The laws in BVI are based upon British common laws.
- The OECD has never blacklisted it. It has a very long history of providing beneficiaries to offshore companies.
- High standard of living with a per capita income that ranks within the top 20 in the world.
- Provision of significant flexibility in terms of mergers and acquisitions of companies.
- There’s no currency exchange fees or limitations.
- There’s also no need of publicising company directors, owners or shareholders.
How to Set Up An Offshore Company in the British Virgin Islands?
To incorporate an offshore company in BVI, one needs to go through the following steps:
1.Select a Business Consultant
First, you need to make sure to join hands with a certified business expert who can assist you in the complete process of setting up an offshore company in the BVI.
2.Keep the Documents Handy
While incorporating an offshore company in the BVI, documentation plays a significant role. The following set of essentials needs to be submitted accordingly:
- A duly filled application form
- Identity proof(s) of the shareholder(s)
- Address proof(s) of the shareholder(s)
- Detailed business plan
- Memorandum of Association (MOA)
- Articles of Association (AOA)
3.Submit the Essentials
After gathering the essentials, you need to make sure to submit the same to the respective business partner. After the submission, the documents will undergo a strict verification process by the relevant government authority of the respective jurisdiction.
4.Open an Offshore Bank Account
The final part is to proceed with the offshore bank account to carry out the transactions at ease. Opening an offshore bank in the British Virgin Islands turns out to be a beneficial move. To know more about this, have a look at the Top 10 Benefits of An Offshore Bank Account in the BVI.
Establishing an offshore company in BVI would be beneficial for almost any company or individual involved in international business. The place has suitable and efficient means of linking with other parts of the world through air, sea or land transportation. The incorporation would be especially beneficial to high net worth individuals and people who seek high confidentiality and private corporate set-up as the place has strict privacy laws with no inheritance tax as well-meaning that they can safely protect their family wealth both from taxation and external influences like civil litigations.
So, do you need more reasons not to establish your dream of forming an offshore company at BVI? We at Business Setup Worldwide can help you realise your dream of setting up any business in the region from opening a restaurant to set up bank accounts or workplaces in the territory without any hassle. Feel free to contact us anytime. We would be happy to help.