There's a reason why 40% of the world's offshore companies registered in the British Virgin Islands. It isn't only because the BVI is an excellent place to visit. After all, it's one of the oldest universally recognized offshore country. Many new offshore jurisdictions base themselves on the BVI's rules before developing their corporate laws. The Islands, One of the British Overseas countries in the Caribbean, offers a significant advantage for foreign investors.
Financial and Tourism services are the two pillars of the economy; the latter is supported primarily by many offshore companies incorporated there. Secondly, BVI enjoys no auditing, no paid-up capital requirements, and 0% corporate taxation.
Many of the BVI's advantages are natural to numerous other jurisdictions English language, absence of currency exchange control since they use the US dollar as their currency as a stable democracy.
Thus, it makes sense why over half of its earnings come from the registration of related services and offshore companies; the BVI is a significant global player in the offshore financial services industry.
Reputable Regulatory Environment
The British Virgin Islands are rulers in the offshore regulatory environment. They have a specific combination of oversight, and the laissez-faire approach makes it both easy to do business. Yet it is reputable with banks and other jurisdictions around the world. All of this makes it elementary and straightforward to bank with a BVI company. The regulatory body, reputable compliance, and clear laws established company formation jurisdiction. Most BC's used as asset protection vehicles, very often in combination with a trust.
Simple Corporate Maintenance
- Annual Meetings in BVI not required
- Only one shareholder is required
- Corporate Books, records and minutes can be stored anywhere.
- You are allowed to run in BVI as a single directorate.
- You do not need to have a meeting in the British Virgin Islands; in fact, there is no legal requirement to hold annual general meetings.
Low Compliance Threshold
The Business Companies Act states that all BC's formed in BVI must establish and maintain a Register of Directors, whereby the initial director appointed within 30 days of incorporation. Further statutory requirements are minimal and flexible.
- No minimum capitalization required
- No local director required
- No corporate secretary
- Shares can be transferred for a consideration other than cash, with or without par value, denominated in any currency.
BVI Business Companies are free from local taxes and stamp duty, even if they administered in BVI. Only annual license/franchise fees and registration will apply.
The British Virgin Islands has good telecom systems and modern infrastructure. They also speak English, use a legal system derived from English common law. The BVI Government is quite active in the needs of offshore companies and has promoted a pro-business environment. The legislation is flexible, to keep out money-laundering, with the goal being to entice legitimate offshore activities, and other criminal activity.
Here’s a guide on how does an offshore company work, which will help you to understand the core working procedure.
Benefits of Setting up a BVI Offshore Company
An offshore company is generally understood to be a corporation registered in a "tax haven" low tax or zero tax country. However, tax advantages are by no means the only benefit to registering an international business enterprise in a jurisdiction like the BVI. A modern offshore company is a private corporation which is exempt from tax, has a flexible organizational structure, suitable for virtually any international business activity, is not subject to excessive accounting and reporting requirements maintains a certain level of confidentiality. The BVI offers all of these benefits and more.
- A BVI offshore company pay zero income tax. There is no BVI tax on capital gains taxes nor gift taxes, inheritance taxes, sales taxes, or value-added taxes.
- Leading international legal and accounting businesses to have a strong presence in the BVI and enjoys a strong international reputation in the Captive Insurance, Corporate Business, Ship and Aircraft Registration, Funds and Investments and Trust and Estate Planning.
- The BVI has pristine water, sub-tropical climate and is a premier destination for those who love yachting, water sports or cruises.
- The BVI has endorsed over 17 Tax Information Exchange Agreements including agreements with Germany, Italy, Britain, France, and Spain.
- The BVI enjoys solid ties with Puerto Rico as well as with the U. S. Virgin Islands. The currency used within the BVI is the US dollar.
- Although both the BVI population and size of the GDP is smaller than is the case with most nations, it's per capita GDP exceeds US$38,000 (2008 estimate).
- The government of the British Virgin Islands noted for its stability. The law in the territory based on British common law.
- The BVI offers a remarkable amount of flexibility in the way which corporate acquisitions and mergers can take place. BVI companies are allowed to combine, and existing companies are permitted to transfer to or from the BVI.
- International banks having in the British Virgin Islands include the First Caribbean National Bank, the London International Bank and Trust Company Ltd., Scotia Bank, and the Bank of East Asia (BV) Ltd.
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