The British
Virgin Islands (BVI) is located near Puerto Rico, in between the North Atlantic
Ocean and the Caribbean Sea, covering a land area of about 151km2 making it the
219TH biggest country in the world. The British Virgin Islands is by
far the most popular jurisdiction in the world for International Business
Companies (IBCs).Virtual office technologies and legislation make it possible
to operate a BVI business from just about anywhere in the world.
The British
Virgin Islands is a popular jurisdiction for offshore business incorporation,
given them many tax benefits offered in comparison to other jurisdictions. It
is, however, very important for entrepreneurs to be aware of the key
characteristics of the jurisdictions they consider for incorporation, in order
to clearly assess the advantages and disadvantages in relation to their
particular business and activities.
The international
financial and tax planning community can and does seek out those jurisdictions
which best accomplish its various requirements. In the BVI, over 800,000 IBCs
have been incorporated to date, with approximately 50,000 incorporated last
year alone! The reason for this BVI preeminence in offshore company formation
lies in its unique combination of those factors that are most important to the
diverse elements that make up the international financial community.
Factors making BVI the most popular offshore
jurisdiction
Exemption from
tax
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 realised 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. All transactions and instruments relating to
transfers of any type of property of assets, shares, debt obligations or
securities to or by a BVI BC are exempt from the stamp duty, with a sole
exception for land-ownership transactions in the British Virgin Islands, in
which case stamp duty remains payable.
Financial Benefits
- Bank accounts may be opened anywhere in the world.
- US dollar is the official currency of the BVI and there are no currency controls by local government.
- The annual licence fee for a BVI Business company is fixed and is not dependent on the financial activity of the company. Where the company is authorized to issue less than 50,000 shares the annual licence fee is $350.00; and where the company is authorized to issue more than 50,000 shares the annual fee is $1,100.00.
- BVI companies enjoy freedom of capital movement. Capital funds may be moved in and out of the BVI without restriction.
- Maximum security of assets including the ability to transfer domicile.
The ability of
BVI companies to transfer domicile ensures maximum asset protection. Directors
of a BVI company may protect its assets by transferring them a trust,
foundation, association, partnership or even another company; and merge or
consolidate with any other company or foreign corporation in another
accommodating jurisdiction.
Flexibility
A BVI company is an extremely flexible legal
person which can carry on a wide variety of activities.
- No restriction on activity: BVI companies are empowered by statute to engage in any lawful or legal business activity outside the BVI. Accordingly, BVI companies are extremely attractive as they may be put to a wide variety of uses.
- Company Structure: a BVI company may have a single shareholder or a single director either of which may be a corporate body and the same individual/corporate body may serve as both sole director and sole shareholder. There is no requirement that either the director or shareholder be a resident of the territory. Aside from the director, there is no requirement to appoint other company officers as such no company secretary is required by law.
- Meetings and Resolutions: There is no requirement for shareholder or director meetings and if meetings are to be held the law permits them to be held anywhere in the world by telephone and any other electronic means. Resolutions whether of shareholders or directors may be consented to in writing and both may vote by proxy.
- Financial Records: a BVI business company is not required to file annual returns, financial statements, accounts or records. If the company choses to keep such records they can be held anywhere in the world.
- Transfer of Domicile: companies incorporated under the laws of another jurisdiction may be converted to BVI Business Companies, if the laws of that jurisdiction permit it to be done. The reverse is also true, in that, a BVI company may also change its domicile from the BVI to that of another jurisdiction.
Dividends and distributions
Another advantage of BVI companies is the ease
with which profits can be released. In order to make a distribution to
shareholders, a BVI company only needs to satisfy a solvency test. The solvency
test is satisfied if:
i) the company’s
assets exceed its liabilities; and (ii) the company is able to pay its debts as
they fall due. There are no distributable profits tests or similar requirements
which is the case in some other jurisdictions.
IPO capability
BVI companies are used as listing vehicles on
the worlds’ most renowned exchanges including the New York Stock Exchange,
Nasdaq, the London Stock Exchange (Main Board and AIM), the Toronto Stock
Exchange and the Singapore Stock Exchange. BVI companies have now also been
recently listed on the Hong Kong Stock Exchange.
Who Can Make Use
Of Offshore Companies?
If you do business outside your own country or economic area, there is a good chance you may find advantages from using a BVI Offshore Company.
The BVI is a well respected offshore jurisdiction
which has been tried and tested. The BVI is by far
the most popular jurisdiction in the world for IBCs because it provides the
best combination of those qualities that the international financial
professional seeks out when establishing such a company for his clients. The advantages
of BVI companies along with the expertise of BVI professionals and their
onshore counterparts continue to secure the position of BVI companies in
corporate structures globally.
Suit 6-Westward House
Glebeland Road Camberley
Surrey, GU15 3DB
Tel: 02079935929
E :info@globalcompanyformation.co.uk
W :www.globalcompanyformation.co.uk
Welcome
to Global Company Formation
We offer formation advice to start up business
globally. We advise you of the mode of start up like limited company,
partnership, sole trader, trust and which is more suitable to your business.
Our professional team consists of Lawyers, Chartered Accountants & Business
Consultants in all major jurisdictions across the globe. We guide you to the
country of formation on the basis your domicile status, double taxation
agreement, international plan and repatriation rule of the each country. Now
you can form your business anywhere in the world with us and we care your
business.
Mathew Stephen is the founder Director of
Global Accountancy Services. He isa qualified accountant from the Association
of International Accountants in the UK and the Institute of Chartered
Accountants of India. He is also one of the partners of international Chartered
Accountants firm P. Parikh & Associates. He has 20 years’ experience in
accounts, business consultancy, taxation & statutory audit. He is also a UK
Independent Financial Advisor (IFA) and CeFA qualified at the IFS School of
Finance.
He has won the Online Technology Award in two
consecutive years, 2011 and 2012, from the Tenet Network. He specialises in
Global Company Formation, International Taxation and also as Corporate
Protection Advisor to the directors of Limited Companies.
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