British Virgin Islands (BVI)
About 80 kilometers east of Puerto Rico, in the Eastern Caribbean, the British Virgin Islands (BVI) are situated. The official language of this island is English and the official currency is the US Dollar. The government is very stable and promising. It is also putting in a lot of effort to encourage offshore finance business given the good commercial and professional infrastructure of the island. Recently the state of the art technology has also been installed.
In 1984 the International Business Companies Act was passed. Thus the International Business Company (IBC) was created which has become the desired vehicle of offshore companies. Due to the extensive marketing of the jurisdiction the BVI has achieved great popularity in the recent years especially in the Far East. The IBC Act has now been superseded by the BVI Business Companies Act 2004.
The British Virgin Island IBC
Following are the characteristics of BVI IBC :
– in BVI taxes are not paid by IBCs .
– the minimum number of shareholders required is one. Either bearer shares or registered shares may be issued. The details of the shareholders never appear in the public file but a file of details has to be maintained by the company at the registered office address in BVI. Since 2005 January the certificates of any bearer share issued has to be kept in the custody of an approved custodian. And an annual Government license fee of USD 1100 has to be paid by all such companies who are empowered to issue bearer shares even if there are none in issue presently.
-the minimum number of directors required is 1. Corporate directors are allowed. Public file doesn’t contain the detail of the directors.
-it is not needed to file any annual returns or accounts. It is worth noting that as much as 50% of the annual Government fee can be incurred as penalty if the license fee is not paid in time.
-within 24 hours incorporation can be achieved but it takes about a week for the document to come from the BVI. Restrictions on name and activity – the names must contain any of the followings: Limited, Incorporated, Corporation, Societe, Anonyme or Sociedad Anonima.
The following words and their associated meanings must not be used:
Fund, Royal, Trust, Bank, Chartered, Co-operative, Chamber of Commerce etc.
The company must maintain (within BVI) a registered office address. Further, a resident of BVI has to be appointed as the agent of the company.
Feel free contact us for more information on how we can help you realize these benefits.