The British Virgin Islands (the BVI) are a chain of small Islands in the Caribbean which is approximately 80km east of Puerto Rico. BVI is a British Overseas Territory that has been granted self-government since 1967 and is also a member of the British Commonwealth.
As the jurisdiction has been using International Business Company (IBC) legislation since 1984, its offshore financial services sector has been developing significantly over the past decades. Then in 2004, the IBC Act was repealed and replaced by the Business Companies Act of which the jurisdiction became even more prominent.
More information is available on the government website.
Content Outline
BVI Law & Taxation
The constitutional BVI law system is based on English common law, and subsequently it is supplemented by the local laws. Corporate income taxes, capital gains taxes, and withholding taxes are the typical taxes that are not applicable as well. In addition, there is an open business environment for financial transactions, where the exchange controls do not apply to the transfer of funds into/from the territory.
Corporate Requirements
BVI Registered Agent and Office:
The legislation of the BVI stipulates that every BVI company must have a registered agent and an office situated within the country. These service providers, who are licensed by the BVI Financial Services Commission, are the ones who will act as your local contact and will ensure the compliance with regulations.
At least one director is mandatory, and corporate directors may be added:
BVI companies have minimum one director only, but there is no limitation on nationality and country of residence. The company can also be granted the authority to appoint its corporate director. Such a company is an expert in the field of director services. The law about Business Companies (BCA) says that there always has to be the director, so it is important to make an effective plan of succession. Under the BVI system, directors details are with the BVI authorities but this information is kept private and confined to BVI authorities only.
BVI Shareholders:
From July 1st, 2023 BVI does not permit the issue of bearer shares any longer. Companies may only issue registered shares that are recorded with the registered agent and furnish evidence of the owner’s rights. Previously issued bearer shares were automatically converted to registered shares on the abovementioned date (date of the Registration Record).
BVI Record Keeping:
BVI corporations are obliged in maintaining a register of members (shareholders) at the registered agent’s office. Privacy of the name of the registered shareholders can be ensured as they are non-discloseable in the light of the fact that bearer share is no longer available now.
BVI Annual Requirements:
Although BVI prides itself on being business oriented, the annual obligations are something to keep in mind too. Companies are required to yearly file annual returns with the Registered Agent. The returns may include basic financial information that may depend on the type of the company affairs and its structure. However, AGM is not a duty by law. Yet, the articles of association may stipulate this detail as internal governance rule for the company.
BVI Local Infrastructure
The BVI has done well in attracting enough international law and accountancy firms operating here. Currently, there are few numbers of banks and financial institutions. The registry of Corporate Affairs in the BVI is highly technical and competent and has remained dynamic amidst the exponentially growing demand of the market.
There are no particular statutory provisions defining the environment of confidentiality for the companies. On the other hand, there are very minimum statutory filling requirements in English law which is in use in the jurisdiction imposes a general common law duty on professionals to keep the affairs of their clients confidential.
How FastLane Group Can Help?
FastLane always has a respectable reserve of businesses available for immediate registration under any of thousands of names. We are also able to assist in register a company with the name of your choice and to check the availability of names in advance.
We also provide company secretary services for registering share certificates, the Memorandum and Articles of Association, registration of the company including its seal, chop, and the certificate of guaranteed quality. We offer this service to you at an extra cost besides the Proof Certificate of Good Standing and the Certificate of Certificates of Corporate Existence as well as any other post-incorporation services. Find out more and contact us now!