A Complete Guide on Offshore BVI Trust

While considering investing or offshore company incorporation, the British Virgin Islands (BVI) is considered to be one of the best destinations for entrepreneurs. In the long run, this creates a need for managing the assets of entrepreneurs and businesses. 

This is where A BVI Offshore Trust can play an important role. 

BVI Trust Company

A BVI trust company protects assets owned by families, business owners, and high-net-worth individuals who don’t want to transfer their assets to a third party. This type of company is also known as a BVI Private Trust Company.

Different Parties Involved in a BVI Trust

 There are certain components of a BVI trust company. Here is a list:

  • The Settlor - A settlor is one who creates trust.
  • Trust Fund - The asset or property put in the trust is called the trust fund.
  • The Trustee - A trustee is the legal owner of the asset in a trust.
  • The Protector - A protector is the supervisor of the trust who manages the asset. 
  • The Beneficiaries - Those who will get the profit from the trust are known as the beneficiaries. 

Key Advantages of Trust Company Registration

Choosing the British Virgin Islands trust provides various advantages such as:.

  • Privacy and confidentiality in terms of trust formation
  • Flexibility in conducting business activities
  • Political and economic stability
  • Tax Exemptions
  • Complete asset protection
  • Global Recognition
  • Estate planning

Common Types of Trusts for Offshore Company Formation BVI

In this, the trustee has greater control as he has the flexibility to decide when and how much the assets are to be distributed. On the other hand, the beneficiary gets a pre-determined share in a fixed-interest trust. 

This type of company is appropriate for managing and holding shares of the BVI companies. The settlor retains some power and rights as a shareholder of the company. The usage of the company is for estate planning, succession and wealth preservation purposes. 

This type of trust is suitable for non-charitable purposes only. The company holds assets and protects them for social, environmental, or educational purposes.  

Simple Step-by-Step Procedures to Form BVI Trusts

In order to proceed with BVI offshore company incorporation or forming BVI trust companies, one needs to go through the following procedure:

1. Join Hands with a Business Setup Consultant

Proceeding through the entire process by yourself might seem troubling. In order to complete the process on time and form your BVI offshore trust, you must seek assistance from a business setup consultancy like Business Setup Worldwide to get a clear picture of the business. 

 Conduct thorough research to understand all the business requirements and the compliance procedures which are to be followed. You can also avail assistance from an offshore business consultant to understand the current business scenario.

While proceeding ahead with BVI trust formation, you must submit the following documents:

  • Photocopies of the parties involved in the trust company formation process
  • Detailed and well-structured business plan
  • Identity and address proof of the parties 
  • A duly filled application form
  • Bank reference letter

4. Get Approval from the Relevant Offshore Authority

After submitting the necessary documents for forming a BVI trust company, you can wait for approval from the respective offshore authority. Approval can take time depending on your choice of business and offshore services. It is advisable to avail the services of a business setup consultant to track your progress.

After following the steps mentioned above, you can open an investment bank account in the same jurisdiction (where your offshore company has been incorporated)  

Our Role 

Since its inception, Business Setup Worldwide has assisted numerous business investors by offering them customised solutions according to their business requirements. This has made BSW one of Dubai's top ten business consulting firms. The business advisors at BSW will guide and advise you in all aspects of BVI Offshore Trust formation. Feel free to contact us if you need more clarification about the BVI trust cost and formation process of private trust company BVI.

FAQs

Do BVI trusts require registration?

The BVI law does not mandate the public filing and registration of trust information.

In the BVI, is a trust a legitimate entity?

There is no distinct legal entity called a BVI trust. Those unfamiliar with the idea of a trust might be worried that giving trustees ownership of their assets will provide them with little security.

How are trusts and entities different from one another?

However, unlike an LLC, a trust must not be registered with any government body to be created. Beliefs can hold a wide range of assets, including money and bank accounts, property and securities, ownership stakes in LLCs and other corporate entities, and real estate and securities.

What are the most common trusts established in the BVI?

The most common trusts established in the BVI are
Discretionary trusts
Trusts
Life interest trusts
Fixed interest trusts