A BVI Company, also known as a corporation formed in the British Virgin Islands under the BVI Business Companies Act of 2004, operates under regulations. Despite functioning as a corporation, the BVI refers to businesses that can engage in transactions, with non-residents of the BVI as “business companies.”
Many individuals opt to open a bank account for their International Business Companies (IBCs) within the British Virgin Islands. A BVI Offshore Company Formation has the ability to hold a bank account.
People often seek this arrangement for reasons such as privacy, potential tax benefits or safeguarding assets. However, it is important to note that while these entities enjoy income tax exemptions within the islands, taxation may still apply in one’s home country.
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The Types of a BVI Offshore Company Incorporation
The BVI Business Companies Act of 2004 allows for five types of business companies;
1. Business companies are restricted by shares.
2. Business companies are restricted by a guarantee indicating they cannot issue shares.
3. Business companies that combine both restrictions by a guarantee and authorization to issue shares.
4. Unlimited business companies that cannot issue shares.
5. Unlimited business companies with authorization to issue shares.
Benefits of a British Virgin Islands Offshore Company Registration
Opting for a BVI Offshore Company Formation offers advantages.
1. Popularity: The British Virgin Islands Business Company (BVI BC) is widely recognized as the sought-after legal entity globally. It holds over 40% of all corporations
2. English Language: The official language in the BVI is English, which simplifies communication and business operations.
3. Single Shareholder: BVI corporations can be established with one shareholder. There are no limitations on the maximum number of shareholders.
4. Tax Benefits: The government of the British Virgin Islands does not impose income taxes on BVI corporations. However, it’s important to note that US citizens are required to report their income to their tax authorities, and many other countries may also require tax payments on income for their residents.
5. Stellar Reputation: The British Virgin Islands has consistently maintained a standing without being blacklisted by prominent international finance watchdog organizations such as the Financial Action Task Force (FATF) on Money Laundering or the Organization for Economic Cooperation and Development (OECD).
6. Enhanced Privacy: BVI corporations enjoy privacy advantages as they are not obligated to disclose information about officers, directors, owners or shareholders. Names of these individuals are not made available in the records maintained by the BVI Register.
These benefits make establishing a BVI company an option for businesses seeking opportunities. And you won’t find any information about them in the records.
Requirements for a British Virgin Islands Offshore Company Formation
The expenses involved in establishing a company in the British Virgin Islands (BVI) are outlined during the ordering process on this website. The cost of a BVI Offshore Company Incorporation includes government fee formation charges, agent/office fees, document shipping and more.
To register a BVI company or seek assistance, you can reach out to our experts.
1. Choosing a Name
When forming a BVI corporation, it is crucial to select a corporate name that does not resemble any existing company name. Typically, three alternative names are submitted with the hope that one will be approved.
2. Office Address and Local Agent in the BVI
A BVI corporation must have a registered agent and an official office address to process service requests and official notifications. Post office boxes cannot be used as office addresses.
However, the registered agent can designate their office address as the corporation’s address.
3. Shareholders and Directors of a BVI Company
A minimum of one shareholder is required for a BVI corporation. It is advisable to issue shares after incorporation to avoid directors being held liable for all contracts initiated by the corporation.
The shareholder’s names, similar to the directors, are not publicly. Recorded unless the company chooses to do so. BVI corporations have the flexibility to issue shares with or without a value in any currency.
When it comes to BVI company directors and officers, one director is required. There is no obligation for a company secretary.
The directors of the corporation don’t need to be residents of BVI; they can be individuals or business entities.
4. No Capital or Tax Requirements
There are no requirements for capital in BVI corporations. BVI corporations are exempt from paying taxes to the BVI government.
5. Fees, Information, and Accounting
Reasonable annual renewal fees apply to BVI corporations. These may vary over time. It’s advisable to inquire about details.
BVI corporations prioritize confidentiality. Do not have an obligation to share information about officers, directors, owners or shareholders in records.
The available documents are the Articles of Association and Memorandum. Offshore corporations in BVI aren’t obligated to maintain records or undergo accounting and audit requirements.
However, it is mandatory for corporations in the BVI to publish their financial statements, which are audited by an independent auditor on a yearly basis.
6. Annual General Meeting
BVI corporations are required to hold meetings with no specific location requirement, as they can be conducted anywhere around the globe.
7. Time Required for Incorporation
The entire process of incorporating a BVI corporation usually takes around three to six days. The duration depends on factors such as the approval of the corporate name registration and how promptly and accurately the applicant completes their registration and submits the due diligence documents.
Additionally, please allow for time for document shipping after formation.
8. BVI Company Due Diligence and Documentation Requirements
To establish a relationship, our BVI company affiliate office is obligated by law to hold documents for each shareholder, director and beneficial owner of the company.
- An original bank reference letter from an international bank addressed specifically to our BVI staff affiliate office. The letter should mention your duration of being a client of the bank and whether your relationship with them has been satisfactory and conducted in a manner or similar language.
- To proceed with the application, you will need to submit a reference letter from a firm, such as an attorney’s office, accounting firm or auditor’s firm. The letter should be on the firm’s letterhead.
- You must confirm that you have been doing business with them for at least two years. It should also provide a reference.
- In addition, please provide copies of the passport pages containing your signature and photo. These copies can be notarized or in colour.
- You are also required to submit a statement outlining the nature of your business activities. This should include information about the type of activities your company will engage in and the main source of funds that will be used to finance these activities.
- Furthermore, we need proof and confirmation of each director’s address. A utility bill from within two months would be suitable for this purpose.
If you are interested in incorporation, Business Setup Worldwide also offers shelf corporations in the BVI.
Why Choose Us for Your BVI Offshore Company Registration?
Please note that our BVI Offshore Company Formation package includes the provision of a registered agent and registered office. Additionally, we will provide all company documents to confirm its existence.
We take pride in offering one of the prices for annual renewals. We offer a user online order form that simplifies the process of registering a BVI company, so kindly contact our experts today!
Once you submit your order, a dedicated business administrator will handle all the steps involved in your BVI Offshore Company Registration on your behalf.
