An offshore company is typically regulated, much like limited liability company (LLC) or a local corporation. As specified, many business owners seek offshore incorporation because it can provide a multitude of benefits, including the privacy of ownership, asset protection from legal attacks, business growth opportunities, and tax savings in some cases. The information below contains a general guide; you will surely use an incorporation agent who will take care of all the paperwork. However, you too need to know about the various procedures involved so you can understand what you are signing and what is happening.
Requirements to Properly Initiate the BVI Company Formation Process
British Virgin Islands Offshore Companies also offer International Business Companies (IBC). BVI has an upstanding reputation, stable government, and it provides financial privacy to the owners with a bank account. A company formed in another company can convert into a BVI company and also a BVI company can be converted to a company in another popular offshore jurisdiction.
Like others, British Virgin Island IBC's do not pay either stamp duty or local taxes. In the past British Virgin Islands had bearer shares but the regulations changed in 2004 negate this as a practical option. The names of shareholders, investors, owners, operators, etc., remains confidential. This Act makes the formation of International Business Companies (IBC) in the British Virgin Islands an excellent opportunity for confidentiality and financial security.
The next step is to think about the type of entity that you want to form Companies in the British Virgin Island are incorporated under the BVI Business Companies Act 2004. Have a look here on the BVI company formation process. Companies that get incorporated to carry-on business with non-residents of the British Virgin Island commonly referred to as "business companies". Under the Act of 2004 permits the formation, it is possible to incorporate five different types of companies are:
- Business companies are limited by shares
- Business companies restricted by a guarantee that is not authorized to issue shares
- Business companies limited by a guarantee that is authorized to issue shares
- Business companies that are not permitted to issue shares
- Business companies that are allowed to issue shares
Later you will need to choose your company's name BVI corporations must select a unique company name that is not already existing company names. The company name includes the word like Limited, Corporation, Incorporated, an equivalent or an abbreviation thereof.
BVI Office Address and Local Agent
BVI company must have a local office address and a registered agent located in the BVI. This address will use for official notices and service requests. However, the local Agent can make its office address designated as the company local office address.
To incorporate, the company's registered Agent will file with the Registrar the Articles of Association and Memorandum. When the company has fulfilled the requirements of the Act, the registrar will allow the company a unique number and issue a certificate of incorporation. Usually, it takes three to five days to complete.
The Agent will appoint the company's first director, and this should complete within six months of incorporation. The number of directors can be stated by the Articles of Association, although a company must have at least one director. There is no legal demand to appoint a company secretary.
The Agent will require the details of shareholders at the time of incorporation. Once directors have been selected, they will be able to issue shares to shareholders. A company can be authorized to issue shares with or without par value, and shares issued with par value can issue in any currency. Where a company issue shares with par value, the application paid must be at least equal to the par value of the shares, it means that a company cannot issue partly paid shares.
Scanned and notarized photocopy of a passport as well as a photocopy of another official document (such as Driving License, ID Card etc.) notarized, this is to ensure the passport conforms to an exact likeness and that the passport is legitimate. The following must prepare for every beneficial director and shareholder.
There is no requirement for authorized capital in the British Virgin Island.
British Virgin Island IBC'S are not required to pay corporate taxes to the BVI government.
BVI corporations pay reasonable yearly renewal fees. This changes periodically so inquire for specifics.
IBC does not need to share information about officers, directors, owners, or shareholders in any public records. None of this information filed with the Register. Confidentiality is maintained, as these names not disclosed in the public records.
Reasons to Avail Professional Services?
By joining hands with the business experts, you will be able to avail the following benefits;
- Time and resources can utilize effectively
- Strategic and budget can draft at ease
- Helps to provide quick incorporation solutions
- Strategic inputs and market insights will be known
It is recommended to hire an offshore business consultant to make your business registration process easy. Here’s a guide on the Core Reasons to Hire An Offshore Business Consultant, which will help you understand the benefits that you can avail.
We covered most of the things on how to start an offshore company in British Virgin Island. We at Business Setup Worldwide can help you to set up an offshore company in BVI. We also provide these services like accounting and bookkeeping services, offshore banking, IP and much more. Contact us now to know more about how to start an offshore company in BVI.