How to Start a BVI (British Virgin Island) Company?

BVI Offshore Company Formation

BVI offshore banking has become a favorable bank 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 globally. 

This guide is focused on providing the necessary information to business owners and investors looking forward to a British Virgin Islands offshore company formation.

What is a BVI Offshore Company Formation?

A BVI company is a business entity formed with one or more people or entities.

Today, over 40% of the world’s offshore companies are in BVI because they hold various business uses with significant tax benefits and maintain strict confidentiality and a flexible organizational structure. 

More than 6,00,000 business entities are registered, and more than 5,000 companies are registered monthly. Let’s take a step ahead and look at the essentials required for a BVI offshore company incorporation.

Requirements of a BVI Offshore Company Incorporation

Some of the essential elements of a BVI Company are stated below:

1. Name of the BVI Company

  • “Limited”, 
  • “Corporation”, 
  • “Incorporated”,
  • ” Societe Anonyme” or its related abbreviations “Ltd”, “Corp”, “Inc”, or “SA”. 

The name can be registered in Chinese, but the English translation is mandatory. It is to be noted that words like “Bank”, “Credit/ Care '', “Insurance”, and “The Fund” is strictly not allowed.

2. Registered Capital

No minimum capital needs to be paid for the BVI offshore company registration. 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 that is not possible, the company seal can be used instead.

4. Shareholders

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 AGM for a BVI offshore company formation. The shareholders and directors can conduct their meetings through different communication modes like the telephone or other electronic medium.

6. Directors

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 can conduct their business meetings anywhere worldwide, which must be recorded as minutes.

7. Registered Agent

A registered agent is necessary for any BVI company upon its formation. It is to be noted that the registered agent must be approved by the Company Management Act of 1990 or the 1990 Act of Licensed Banks and Trust Companies.

8. Company Seal

A BVI Company must hold a company seal with its name and address engraved.

9. Registered Address

Every BVI company must hold a registered address, which needs to be specified in the Charter of the Company.

10. Company Books

There is no legal requirement to manage the business books for a BVI offshore company formation. However, maintaining the accounting and bookkeeping records helps the company track progress.

The incorporation process would suffice if the shareholders could submit the documents required for registration. 

The Process of the BVI Offshore Company Registration

Follow the BVI offshore company incorporation process to get started:

  1. Finalize the Trade Name with the Structure: BVI provides different business structures. It’s best to choose one that is suitable for your business. Select up to three trade names maintaining all the compliances. Follow the universal guidelines for selecting the name. 
  2. Submit the Application: In the next step, fill out the application form mentioning all the details of the shareholders, and directors of the company in the BVI.
  3. Obtain a Business License: You can’t start any business in the BVI without a business license. There are different requirements to fulfill according to the different business activities for your BVI offshore company formation. 
  4. Open a Bank Account: The last step is to open a bank account for your offshore company in the BVI. You can go for any neobanks or offshore banks to handle your financial transactions. 

Documents Required for a BVI Offshore Company Registration

The set of essentials includes 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 British Virgin Islands offshore company formation. 

Benefits of a BVI Offshore Company Formation

Some of the benefits that the investors enjoy with a BVI offshore company registration 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
  • There is no requirement of share capital
  • No additional tax charges
  • No mandatory corporate governance requirements

Thus, you can see that proceeding ahead with the BVI offshore company formation 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.

While you hold the idea of BVI offshore company incorporation, we at Business Setup Worldwide are here to guide you during the company setup process. 

Our business experts are well-versed in the company incorporation proceedings and have been helping numerous clients establish their businesses at a global level. With the help of industry experience and market scenarios, our advisors provide customized solutions that suit the business's needs. If you have any queries, speak to our experts. Contact us today; we’d be glad to assist.

FAQs

Do I need a physical presence in the BVI to register a company?

No, there is no requirement for directors or shareholders to be physically present in the BVI. The entire registration process can be handled through a registered agent.

Who can be a director or shareholder of a BVI offshore company?

Directors and shareholders can be individuals or corporate entities, and they can be of any nationality. Nominee directors and shareholders are also allowed to have enhanced privacy.

Is my information kept confidential?

The BVI is known for its strict confidentiality laws. While certain information is kept on record with the registered agent, the details of shareholders and directors are not publicly disclosed.

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