The British Virgin Islands (BVI) is regarded as one of the most appealing destinations for offshore company incorporation in the world. Its open economy coupled with a favourable tax law within a strong regulatory framework has been the facilitator of a large number of non-resident investors flocking into the territory.

There are multiple choices for entrepreneurs to incorporate a Business Company (BC), including company limited by shares which is the most popular company type for investor, company limited by guarantee, unlimited company, restricted purpose company, and segregated portfolio company. These are some of the general advantages of the British Virgin Islands over many other offshore financial centres as below.

1.       General Information of British Virgin Islands

(1)      Location

BVI allows its companies favourable conditions to easily access to modern telecommunications by sea and air. Furthermore, this place has US dollar as the official currency, and there are no currency exchange control and no limits on cash flow movements in this jurisdiction.

(2)      Legal

BVI has an independent judicial system based on English Common Law. Laws and regulations are routinely developed in consultation with the private sector. Offshore financial services sector contributes a very significant part to the country's gross domestic product. Therefore, an inherent and pronounced interest exists both with the government and with the general public to maintain and develop the country's status as a competitive offshore financial center.

 
(3)      Political

BVI are a British Overseas Territory, which provides for an outstanding political stability. The country also maintains a low international profile and a clean reputation, thus avoiding the pitfalls experienced by some more publicised and less scrupulous offshore tax havens.

2.       Features of British Virgin Islands Business Company

(1)      Tax Exemption

A BVI Business Company is exempt from the BVI income tax, the same exemption applies to all dividends, interest, rents, royalties, compensations, and other amounts paid by a company, and all capital gains realized with respect to any shares, debt obligations or other securities of the company.

No estate, inheritance, succession, or gift tax is payable with respect to any shares, debt obligations or other securities of a BVI BC.

(2)      Legal personality

A BVI Business Company has separate legal personality and the same powers as a natural person.

(3)      Business Activities

The BVI Company has full capacity to carry on or undertake any business or activity, do any act or enter into any transaction, unless the memorandum of association restricts the activities of the company.

(4)      Company Names

The Registrar will not register a company the name of which is identical to the name of an existing company or so similar be likely to confuse or mislead.

A BVI Company may be registered with an additional foreign character approved by the Registrar. The name of a company may comprise the expression “BVI Company Number” followed by its company number in figures.

 
(5)      Confidentiality

The details of the company beneficial owners, directors and shareholders are not part of public record. Register of Members, Register of Directors and all Minutes and Resolutions by the Company are kept only at the offices of the Registered Agent in complete confidentiality. Certainly, though, these files are available for inspection to Company shareholders.

(6)      Memorandum and Articles of Association

The only documents held on public record are the Memorandum and Articles of Association, but these normally do not contain any indication as to the actual shareholders, directors or the beneficial owners of the company.

(7)      Annual Return

BVI Business Companies does not have an obligation to prepare of file financial accounts. However, records must be kept that are sufficient to show and explain the Company's transactions; and will, at any time, enable the financial position of the Company to be determined with reasonable accuracy.

See also:
BVI Business Company Incorporation Procedures and Fees