Business investors have various options when investing in offshore companies. The freedom to benefit from tax benefits is one of the ideal mindsets that motivates business owners to move forward. Regarding offshore company investment prospects, well-known locations like the British Virgin Islands have unquestionably proven to be among the most sought-after countries.
A trust company in BVI is the best business choice available worldwide among all other business options. Trust is essential in succession planning for people, businesses, families, etc. Trust can be stated as an individual corporate entity. The primary justification for the establishment is asset and wealth management with tax mitigation.
If you are a business investor looking forward to an ideal offshore company formation in the BVI, this guide is for you.
Offshore BVI Trust Company
The trust statute is followed by trust firms founded in the British Virgin Islands. According to the books of law, the British Virgin Islands Special Trusts Act, 2003 took effect on March 1st, 2004. The VISTA trust gives business owners flexibility in managing the entire corporate organization. The BVI's adoption of the trust act has given business investors more opportunities to participate and increase their wealth.
Moving on to the parties involved in the process, a trust entity incorporated in the BVI holds the following parties:
- The trust’s grantor: The grantor can be referred to as an individual who creates a trust. It can also be called a settlor, maker, donor, or trustor. The grantor has the right to amend, alter or revoke the trust at any point.
- Trustee and successor trustee: A trustee is a person in charge of managing the trust entity and can take the property's legal title. If the grantor cannot serve as a trustee due to death, incapability, or illness, the successor trustee mentioned in the trust deed needs to take the respective call.
- Beneficiaries: These are the parties that benefit from the incorporation of the trust entity. While proceeding with the relevant process, there are two types of beneficiaries that one can come across:
- Primary beneficiaries
- Contingent beneficiaries
- Trust Deed: This official document 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 BVI Private Trust Company
To proceed ahead with the incorporation of a trusted company in the tax-haven jurisdiction of BVI, one needs to go through the following steps:
Join Hands with Business Expert
The first and foremost step is to consult a business expert who can help you complete the legal proceedings easily. Proceeding single-handedly with the offshore company formation is not ideal for a foreign business owner as he may need to learn the legal proceedings. Here’s a guide on the British Virgin Island Company formation rules that one needs to be clear before proceeding towards the entity's setup.
2. Understand the Business Fronts
Since you have been dealing with setting up a trust unit in the BVI, make sure to discuss the same with your business advisor. Get involved in a discussion wherein you can get an idea of the complete business scenario and understand the legal proceedings easily. 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 regarding company formation. While proceeding ahead with the offshore trust company, one must submit the following essentials. Check out all you need to know about the offshore company guide in BVI.
- 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 Approvals from the Respective Authorities
You must give the business expert the above documents once you have them in your possession so that they can submit them to the appropriate government agencies. Moving forward with an expert is advantageous because they are familiar with legal procedures and have access to resources that can expedite the process.
5. Open an Offshore Bank Account
Next, you need to hold an offshore bank account in the jurisdiction. The business owners can open a trust investment bank BVI 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.
Most business investors prefer to move through with the second choice to create high-end security. For instance, a BVI offshore company maintaining a bank account in Mauritius protects the company's wealth and assets.
6. Commence the Activities
After the offshore bank account is opened, you can quickly proceed with the business activities.
Thus, you now know the fundamental steps that must be completed to establish an offshore trust corporation in the British Virgin Islands (BVI). Make sure to enlist assistance, as it has already been established that having one can make the procedure go more smoothly.
BSW | Your Offshore Business Setup Guide
We work with several business professionals at Business Setup Worldwide who can incorporate their offshore business units. Since we were founded, we have aided business investors by comprehending their demands and offering specialized solutions, making us one of the top ten business consultants in Dubai.
Our business professionals are available to advise you appropriately and are familiar with the business environment. Feel free to speak with our business advisors to learn more. Contact us right away; we'd be happy to help!
