The British Virgin Islands are British Overseas Territory in the Caribbean located towards the east of Puerto Rico and US Virgin Islands and North-West of Anguilla. The BV consists of multiple islands like Tortola, Virgin Gorda, Anegada etc. and the region holds a population of about 35,802 (July 2018). In the mid-1980s, the BVI joined the world of offshore banking and has become a favourable destination for international investments. In 2004, the BVI Business Companies Act eliminated the distinction between offshore and local companies in the islands, thus making BVI Offshore Company accessible at a global front. This guide is focused on providing the necessary information to the business owners and investors who are looking forward to investing and start a BVI Company in Hong Kong.
What is a BVI Company?
A BVI company is a business entity that is formed with one or more people or entities. It is the official name of “Offshore Companies” according to the Fidelity, and stands as a private corporation. Today, more than 40% of the world’s offshore companies are BVI Company Registrations because of the reason that they hold a wide variety of business uses with significant tax benefits and maintains strict confidentiality and a flexible organizational structure. There are more than 6,00,000 business entities registered, and more than 5,000 companies get registered every month. Let’s take a step ahead and have a look at the essentials required to form a BVI Company.
There are a multiple benefits of an offshore company.
Requirements of a BVI Company
Some of the essential elements of a BVI Company is stated below:
1.Name of the BVI Company
The name of a BVI Company mandates the word “Limited”, “Corporation”, “Incorporated”,” Societe Anonyme” or its related abbreviations “Ltd”, “Corp”, “Inc”, or “SA”. The name can be registered in Chines, but then English translation of the name is a mandate. It is to be noted that words like “Bank”, “Credit/ Care”, “Insurance”, “The Fund” is strictly not allowed.
There is no minimum capital that needs to be paid for the registration of BVI companies. The BVI companies can’t issue shares less than the par value of shares. Only fully paid shares are allowed for issuance with a flexible mode of payment.
3.Share Certificate Book
The issued shares must hold the signature of any two directors or officers. In case if that is not possible, the company seal can be used instead.
A BVI company can be formed with one shareholder. However, the details of the shareholders must be recorded in the company books and BVI Registrar of Companies.
5.Annual General Meeting (AGM)
There is no mandatory regarding AGM for a BVI company. The shareholders and directors have got the flexibility to conduct their meetings through different communication modes like telephone or another electronic medium.
Just like the shareholder’s part, a BVI can be formed with the presence of one director, who can be an individual or a corporate body. The directors have got the flexibility to conduct their business meeting anywhere in the world, which needs to be recorded as minutes.
A registered agent is a must for any BVI company upon its company formation. It is to be noted that the registered agent must be approved by the Company Management Act of 1990 or 1990 Act Licensed Banks and Trust Companies.
A BVI Company needs to hold a company seal with its name and address engraved.
Every BVI company must hold a registered address, which needs to be specified in the Charter of the Company.
There is no legal requirement of managing the business books for a BVI company. However, maintaining the accounting and bookkeeping records helps the company to keep a track on the progress made.
Now, the incorporation process would suffice if the shareholders can submit the respective documents required for registration purpose. Let’s take a step forward to have a look at the documents needed for offshore company registration in Hong Kong.
Documents Required to Set Up a BVI Company
The set of essentials include the following:
- The Charter
- Certificate of Incorporation
- Minutes of Meeting (Directors and Shareholders)
- Register of Directors
- Register of Members
- Register of Mortgage
Now, as per the guidelines stated by the Law, there are certain restrictions put forward for a BVI company.
Restrictions of BVI Offshore Companies
The offshore companies of the British Virgin Islands have got the following restrictions:
- Getting engaged with business entities within the territory of BVI
- Possessing real estate in the BVI
- Engaging in banking or trust business
- Engaging in insurance or reinsurance business
- Engaging in the business of providing Registrar of Companies
In spite of the restrictions mentioned above, business investors prefer to proceed with BVI company incorporation for the leverages that it allows for.
Benefits of Setting Up a BVI Company
Some of the benefits that the investors enjoy by opting for a BVI company in Hong Kong are stated below:
- Low maintenance cost
- No financial restrictions
- Flexibility to list the shares on worldwide stock exchanges
- Can easily merge with one or more BVI or foreign business entity
- Easily migrate to or from another jurisdiction
- No requirement of share capital
- No additional tax charges
- No mandatory corporate governance requirements
Thus, you can see that proceeding ahead with the BVI Company formation in Hong Kong is a profitable investment decision. However, it is to be noted that the legal proceedings are required to be maintained in a hassle-free manner. To continue the incorporation process smoothly, business investors prefer to consult business experts.
Benefits of Availing Professional Services
By dealing with business experts, you can avail the following benefits:
- Company formation takes place at a speedy rate
- Legal proceedings are handled smoothly
- Experts act as a guide
- Time and money can be utilized in a productive way
While you hold the idea of BVI company incorporation in Hong Kong, we at Business Setup Worldwide are here to guide you during the company setup process. Our business experts are well-versed with the company incorporation proceedings and have been helping numerous clients to establish their business at a global level. With the help of industry experience and market scenario, our advisors provide customized solutions suiting the business needs. In case you hold any query, do speak to our experts. Contact us today-we’d be glad to assist.