In today's time, more and more businesses are moving to offshore destinations. Initially, the popular offshore destinations were known for their exceptional services, lower tax rates or less stringent regulation.
The British Virgin Islands (BVI) is an excellent offshore destination that has been one of the most alluring factors for budding and existing businesses.
According to the OECD (Organization for Economic Co-Operation and Development), an offshore destination provides strict financial privacy laws, highly educated officials, or other taxation rates.
Incorporating a business in the BVI allows the business investors to set up any company in the most feasible ways. So, if you plan to invest offshore, then BVI is where you can count on it.
BVI Offshore Company Register
The BVI is one of the popular offshore destinations in the Caribbean region, and offshore financial services are vital parameters that have uplifted the economy.
The territory does not impose any tax on the companies established by foreign investors. Moreover, the high-end financial privacy of offshore banks makes it a perfect go-to destination.
The nation introduced offshore proceedings in 1984, and in 2005, they further focused on development in its corporate legislation. The territory is so famous for offshore company registration that it counts for nearly 40% of the world's total offshore companies, with over 6,00,000 companies operating.
Another provoking factor that drives the business investor to proceed for BVI company incorporation is that the United Dollars is the official currency. Hence, there can be no currency controls and no external manipulation of the money supply.
BVI Company Formation Tax Proceedings
Setting up a company in the BVI avails the business investors to gain exemption on the following taxes:
- Annual capital gains
- Gift tax
- Inheritance tax
- Value-added tax
- Sales tax
- Corporation tax
The only monetary payment that the investors make is the license fee.
The taxation in the BVI is relatively straightforward and notable for no tax on business entities 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.
The Advantages of Offshore Company in BVI
A few of the benefits that an investor can enjoy by setting up an offshore business in BVI is as follows:
- The territory is a prominent tourist spot with a subtropical climate and pristine waters
- High standard of living with a per capita income that ranks with the top 20 in the world
- No currency exchange fees or limitations
- There's no need of publishing company directors, owners or shareholders
How to Start an Offshore Company in BVI?
BVI offshore incorporation involves the following steps that are to be followed accordingly:
1. Get in Touch with An Expert
The first and foremost task is to get in touch with an expert who thoroughly understands the business proceedings.
Choose your business consultant wisely who meets your business requirements.
2. Enter into a Discussion
It would help if you had in-depth discussions with the expert in the next move. But, again, entering a fruitful conversation will help both parties stand on the same page.
3. Keep the Documents Handy
You can't skip the documentation process for the BVI company setup. The following set of essentials needs to be submitted accordingly:
- A duly filled application form
- The identity proof(s) of shareholder(s)
- The address proof(s) of the shareholder(s)
- A detailed business plan
- The memorandum of association (MOA)
- The articles of association (AOA)
4. Submit the Documents
After gathering the documents, you must submit the papers to the relevant government authorities, scrutinising the records accordingly.
5. Open an Offshore Bank Account
The final move is to open an offshore bank account to smoothly carry out the business transactions.
The jurisdiction allows the business investors to open a bank account either at the initial stage or later in the same or any other jurisdiction.
To know more of the benefits you can derive, here's a guide on the Top 10 Benefits of An Offshore Bank Account in the BVI.
Incorporating an offshore company helps a business owner avail numerous benefits, right from tax exemption to doubling the returns on the investment made.
So, what are you wondering about?
If you are looking to set up a business in BVI, we at Business Setup Worldwide can assist you in the entire setup process.
Since incorporation, we have been helping business investors to establish their business globally. Our business experts are well-versed with the company setup process and can help you assist the process hassle-free.
To know more, feel free to contact us today-we’d be glad to assist!
1. How long does it take to incorporate an offshore company in BVI?
A BVI company can be incorporated within 2-3 working days.
2. Can I start an e-commerce company using a BVI offshore company?
Yes, an e-commerce company can be easily incorporated using a BVI offshore company.