British Virgin Islands as an Offshore Company Tax Haven

The British Virgin Islands (BVI) constitute one of the world’s most reputable offshore commerce and finance centers, located approximately sixty miles east of Puerto Rico and two miles from St. Thomas, U.S. Virgin Islands.

Telephone, internet and postal services are good (as you’d expect from one of the main offshore financial centres in the world). Its official language is English. The International Business Companies Act of 1984 provides for the incorporation and administration of the International Business Companies (IBC) in British Virgin Islands (BVI). Companies incorporated under the Ordinance enjoy a complete exemption from income tax.

On January 1, 2005, a new version of the British Virgin Islands (BVI) Business Companies Act was adopted, implementing further improvements in the British Virgin Islands (BVI) offshore corporate legislation which is already considered to be excellent. The new British Virgin Islands (BVI) Business Companies Act removes any distinctions between the companies operating in the domestic market and companies restricted only to international business, and joins them into one unified type of company – a BVI Business Company. This new corporate structure preserves all the benefits provided by the previous legislation, including exemption from taxes.

British Virgin Islands Companies and their Tax liability

British Virgin Islands (BVI) Business Companies are exempt from British Virgin Islands (BVI) income tax, from tax on dividends, interest, royalties, compensations and other amounts paid by a company; also they are exempt from all the capital gains, estate, inheritance, succession or gift tax with respect to any shares, debt obligations or other securities of the BVI IBC’s. The companies are exempt from any kind of stamp duties relating in any way to its assets or activities, with an exception for land-ownership transactions in the BVI: in that case stamp duty remains payable.

British Virgin Islands Offshore Company Banking

Offshore Trade Services can incorporate BVI companies with a choice of offshore bank accounts at the time of formation. We work closely with a number of banks. Combining the two saves time and couldn’t be simpler.

British Virgin Islands Company Formation / Registration

Offshore Trade Services are able to incorporate a British Virgin Islands (BVI) offshore company. Company formation normally takes up to 1 to 2 days to register, though Off The Shelf companies are available should your requirements be more immediate.

British Virgin Islands Offshore Company Anonymity and Disclosure

The BVI has traditionally offered excellent privacy. British Virgin Islands (BVI) offshore companies are not required to disclose the names of directors and beneficial owners to the registration authorities. Whilst there is no requirement to prepare and file annual accounts, a company is required to keep financial records, which reflect the financial position of the company.

British Virgin Islands Offshore Company Shares

There is no specific minimum capital requirement. The standard authorised share capital is US$ 50,000. The minimum issued capital may be one share of no par value or one share of par value. Registered shares, bearer shares, shares of no par value, preference shares, redeemable shares and shares with or without voting rights permitted. Companies with an authorised capital up to US$ 50,000 pay US$ 350 annual license fee to the government. Additional annual fees would be payable for companies having a higher share capital.

British Virgin Islands (BVI) companies can offer bearer shares whereby it’s not necessary to disclose the beneficial ownership of companies to any person in the British Virgin Islands (BVI).

Bearer shares allow you to keep details of your shareholding private as ownership of the shares passes simply by physical transfer. As such, if you wanted to keep your holding of a particular company private, bearer shares could be ideal. Note that the British Virgin Islands (BVI) have now made changes to the bearer share regime so that the name of the beneficial owner would need to be provided to certain ‘custodians’ such as certain financial institutions. They would, however, have to guarantee confidentiality.

Our Services – Offshore Company Formation, Nominee Director, Nominee Shareholder, Mail forwarding and Bank Accounts

Offshore Trade Services specialize in British Virgin Islands (BVI) company formations ranging from simple company registrations to complex structures including offshore Trusts and in providing a very comprehensive assortment of administrative services to British Virgin Islands (BVI) companies, including the provision of Nominee Director, Nominee Shareholder, Mail Forwarding and Bank Account services. We are also able to offer a 'transfer in' service whereby we can take over the management of your existing British Virgin Islands (BVI) Offshore Company, often for no cost at all.

Please read also about our Due Diligence Requirements.