Gone the days when an offshore company is looked at as a business structure involved in fraudulent activities.
In recent times, the majority of the countries have converted themselves to a growing offshore business destination that helps the business owners to enjoy ample tax benefits.
One such growing offshore platform that has gained the attention of global investors is the British Virgin Islands.
Investing in offshore grounds has been turning out to be a reputable and smart move that allows one to grab numerous benefits.
If you have been looking forward to incorporating an offshore business in a tax-haven jurisdiction- BVI is the ultimate stop!
The British Virgin Islands: A Profitable Offshore Destination
The British Virgin Islands is one of the profitable offshore financial destinations that has grabbed global business owners' attention.
Starting an offshore company in the BVI is one of the smart and profitable moves as the jurisdiction provides a safe business environment with reputable compliance.
Most business owners prefer to proceed with the registration of an International Business Company (IBC) in the BVI.
According to the statistics, almost 41% of the business investors prefer setting up a BVI business. The registration process stands quite simple and straightforward, and thus, it turns out to be a good step.
BVI Business Company
An offshore company in the BVI, preferably a BVI Business Company, is a legal business entity with a separate identity from its shareholders. A BVI business company enjoys tax exemptions from the following:
- Income tax
- Capital Gains related to any shares, debt obligations or other securities
Apart from the list mentioned above, any kind of transfer like property of assets or shares is exempted from the stamp duty.
When it comes to the incorporation process, a BVI Business Company can be incorporated as:
- Company limited by shares
- Company limited by guarantee
- An unlimited company
- A segregated portfolio company
- A restricted purpose company
Features of a BVI Offshore Company
Before you proceed towards starting a BVI Offshore company, let’s have a look at the core features of an offshore company in the BVI, which includes:
- Income is free from local tax
- Minimum Capital is not required
- No Capital gains
- No requirement of annual auditing
- Offshore companies can’t engage in business in BVI
Pre-Requisites of a BVI Offshore Company
When it comes to the incorporation of an offshore company in the BVI, the presence of the following business elements are essential:
- Company trade name that stands unique and can be in any language with Roman characters
- A minimum number of one director and shareholder
- The presence of a company secretary is a must
- The minimum paid-up capital required to incorporate a BVI Company
- A registered address
- Essential company documents that include:
- A duly filled offshore company incorporation application form
- Identity proof of the directors and shareholders
- Address proof of the directors and shareholders
- Passport-size photo of the directors and shareholder
- Memorandum of association (MOA)
- Articles of association (AOA)
- Well-drafted business plan
How to Open an Offshore Company in the BVI?
To register an offshore business entity in the British Virgin Islands, one has to go through the following steps:
1.Seek an Expert’s Advice
When it comes to incorporating an offshore entity, you need to keep in mind that the process would involve numerous legal moves to be cleared in an error-free way.
Taking the guidance of professional experts helps an individual to carry out the task in an effortless and error-free way.
Most business owners prefer to proceed ahead under the guidance of an expert because it not only helps them to save time but also provides them with the leverage to utilize the available resources in the best possible way.
Here’s a guide on the Core Reasons of Hiring an Offshore Business Consultant that will help you to understand the details in-depth.
2.Select the Business Structure
The second move is to enter into a discussion with your business advisors regarding the business structure selected accordingly.
BVI's tax-haven jurisdiction allows the business investors to select from a wide range of company entity types.
To know more on the same here’s a Guide to BVI Company Types that is a must-read for business investors.
3.Handover the Company Essentials
The documents mentioned in the previous section is to be submitted to the business investor, who in return will help you to get the required approvals from the BVI government bodies. It is to be made sure that the submitted documents are error-free, and in case if the authority requires any other document, it is to be presented accordingly.
4.Get the Required Approvals
As the documents are submitted to the authorities, it undergoes the inspection process. If everything suffices according to the authorities, the approvals are granted.
In case if the documents get rejected, you need to cross-check with your business advisor. Rectify the errors accordingly and re-submit the documents to get the required approvals.
5.Open an Offshore Bank Account
Offshore banking is one of the lucrative options gained by every investor who plans to incorporate an offshore business.
The popular offshore tax-haven countries allow business investors to incorporate their business in any destination.
Simultaneously, the business owners also hold the possibility to open an offshore bank account in the same or an alternative location.
To know more about the benefits that you can get, have a look at our latest guide on the Advantages of Offshore Banking.
6.Conduct the Business Activities
After opening an offshore bank account, you are all set to conduct the business activities accordingly.
At the same time, make sure to keep complete records of the business transaction, although there are exemptions on maintaining the same across various locations.
Maintaining the business records helps a business investor to keep track of the business growth accordingly.
Thus, you have got a complete idea of the core grounds to be considered when incorporating an offshore business unit in the BVI.
Are you confused to initiate the process?
Well, don’t worry! The business advisors at Business Setup Worldwide are here to assist you in the complete process.
While you deal with building the strategies to grow your business, our advisors are here to finish the ground-level work right from incorporation to the opening of an offshore bank account.
To take the next steps in incorporating your offshore business in BVI, feel free to contact our business advisors today-we’d be glad to assist!