BVI Trust: British Virgin Islands Offshore Trust Company
When it comes to offshore company investment, business investors have got numerous ways to invest. One of the ideal mindset drives the business owners to proceed ahead is the flexibility to enjoy tax benefits. Popular offshore destinations like the British Virgin Islands have exceptionally proven to be one of the most sought jurisdictions when it comes to offshore business investment opportunities.
Among all the other business possibilities, a trust company formation is an ideal option globally. Can be stated as an individual corporate entity, trust plays a significant role when it comes to succession planning for individuals, corporate entities, families etc. Asset and wealth management with tax mitigation is the core grounds behind the establishment.
If you are a business investor, looking forward to an ideal offshore company set up in the BVI, then this guide is for you.
Offshore Trust in the BVI
The trust companies established in the British Virgin Islands follow the rules of the trust act. According to the law of books, the British Virgin Islands Special Trusts Act 2003 came into effect on 1st March 2004. The VISTA trust offers the business owners flexibility to control the overall management of the business entity. Implementing the trust act in the BVI has widened the business investors' scope to come forward and maximize their wealth.
Moving on to the parties involved in the process, a trust entity incorporated in the BVI, holds the following parties:
- The grantor of the trust: The grantor can be referred to an individual who creates a trust. Can also be called as a settlor, maker, donor or trustor. The grantor holds the exclusive right to amend, alter or revoke the trust at any point.
- Trustee and successor trustee: A trustee is a person who is in charge of managing the trust entity and is capable of taking the legal title to the property. In case if the grantor is not able to serve as a trustee due to death or incapability or illness, the successor trustee mentioned in the trust deed needs to take the respective call.
- Beneficiaries: These are the parties that are benefited by the incorporation of the trust entity. While proceeding ahead with the relevant process, there are two types of beneficiaries that one can come across:
- Primary beneficiaries
- Contingent beneficiaries
- Trust Deed: This is the official document that highlights the roles and responsibilities of the parties involved in the process. It is similar to a partnership deed that gets prepared while incorporating a partnership firm.
How to Start An Offshore Trust in the British Virgin Islands?
To proceed ahead with the incorporation of a trust company in the tax-haven jurisdiction of BVI, one needs to go through the following steps:
1.Join hands with business experts
The very first and foremost step is to have a consultation with a business expert who can help you to complete the legal proceedings at ease. Proceeding single-handedly with the offshore company formation is not ideal for a foreign business owner as he may not be aware of the legal proceedings. Here’s a guide on the British Virgin Company formation rules that one needs to be clear before proceeding towards the set up of the entity.
2.Understand the business fronts
Since you have been dealing with the set up of a trust unit in the BVI, make sure to discuss the same with your business advisor. Get involved ina discussion wherein you can get an idea on the complete business scenario and understand the respective legal proceedings at ease. This builds on the trust factor and also highlights the appropriate steps that need to be taken.
3.Submit the required business essentials
Documentation is the central part that can’t be skipped when it comes to company formation. While proceeding ahead with the offshore trust company in the BVI, one needs to submit the following essentials:
- Duly filled application form
- Passport size photos of the parties involved in the process
- Identity proof of the parties involved in the process
- Address proof of the parties involved in the process
- Detailed business plan
- Bank reference letter
4.Get the approvals from the respective authorities
Once you have the documents mentioned above with you, they need to be handed over to the business expert, who will then submit the same to the government authorities. Now, proceeding ahead with an expert turns out to be a boon because they are well-versed with the legal laws and have their channels to carry out the process at a faster pace.
5.Open an offshore bank account
Next, you need to make sure to hold an offshore bank account in the jurisdiction. The business owners can open a bank account in the same jurisdiction where the offshore unit has been incorporated. Alternatively, other popular offshore destinations can be considered for the same purpose. To know more, read our latest guide on how to open an offshore bank account.
To build high-end security, most of the business investors prefer to go ahead with the second option. For example, a BVI offshore company is holding a bank account in Mauritius, which safeguards the assets and wealth held by the entity.
6.Commence the activities
After the offshore bank account gets opened, you can quickly proceed ahead with the business activities.
Thus, you have seen the basic moves that need to be taken when it comes to offshore trust company set up in the British Virgin Islands (BVI). As it has been mentioned earlier that having a helping hand can ease the process, make sure to get one involved.
Business Setup Worldwide| Your Offshore Business Guide
At Business Setup Worldwide, we have been dealing with several business minds who have been holding the vision of incorporating their offshore business unit. Since inception, we have been helping the business investors by understanding their business needs and provide tailored solutions that make us one of the top ten business consultants in Dubai.
Our business experts are here to guide you accordingly and are well-versed with the industry process. To know more, feel free to discuss with our business advisors. Contact us today-we’d be glad to assist!