British Virgin Islands Company Formation
Benefits of an British Virgin Islands (BVI) International Company Formation
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Excellent reputation of BOT
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Fast and easy company incorporation process
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No business income tax or any taxation whatsoever
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No public access to information about sharehoders and UBOs
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Modern regulatory environment and political stability
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By far the largest financial centre by the number of companies incorporated.
from £1,895.00
Why Set Up BVI Company?
The reputation of the British Virgin Islands as a leader in the corporate services industry is well-recognised worldwide and can be compared to that of the Cayman Islands.
The jurisdiction’s name speaks for itself. Today, it is hard to find a person in the world of commerce who has never heard about BVI offshore companies. This can create additional value for any business. In the BVI, a company registry check can easily be ordered by the owners or business partners to ensure that a company exists and is in good legal standing.
This can be proven by using the BVI company search which extracts information from the Registry of Corporate Affairs and can usually be issued within one to two days.
Advantages and tax regime
The BVI nil tax regime is another great advantage of the jurisdiction for those who want to minimise unnecessary tax burdens and protect their assets.
Among the BVI company advantages, there is a higher level of service compared to some other offshore jurisdictions. Also, the BVI company formation process is fast and usually takes only one day to complete after the application has been submitted to the BVI corporate registry.
There are not many BVI company disadvantages and these are no different from other jurisdictions with a 0% tax rate.
Taxation in the British Virgin Islands
The British Virgin Islands has abolished corporate income tax for both offshore and locally operating companies and has introduced a payroll tax for local employees. This means that the effective BVI tax rate is 0% for corporate tax, capital gains tax and withholding tax.
This, along with its vast popularity, makes the BVI one of the most renowned tax havens in the world.
The convenience of the tax regime and minimal reporting requirements made BVI one of the most popular and familiar financial centre for the offshore company formation.
No-tax jurisdiction at all levels
There is also no personal income tax in the BVI, therefore individual tax residents of the BVI are free of any tax obligations.
After the British Virgin Islands company formation, a short-form financial return shall be submitted on an annual basis. The annual financial returns need to be submitted to the International Tax Authority operating on the islands since 2018, even though there is no taxation in the BVI.
No value-added tax is applicable to offshore companies in the BVI.
Corporate Legislation in the BVI
As can be expected from the British Overseas Territory, legislation in the BVI is based on English common law. The court of final appeal in the British Virgin Islands is the Judicial Committee of the Privy Council in London. In combination, these factors largely contributed to the attractiveness of the British Virgin Islands company formation, as the business owners often prefer flexibility and protection of the English law to their national legal systems.
The BVI company law is deemed to be the most progressive among offshore financial centres. It effectively makes a BVI Business Company (BVI BC) very flexible and suitable for both small privately-owned asset protection companies, as well as large enterprises listed on the global stock exchanges. This is one more reason why the BVI offshore jurisdiction remains the most popular in the world.
Progressive and flexible company law
The BVI Business Companies Act 2004 (BVI BCA) has been in effect since 2006. The BVI BCA became the sole piece of legislation that is applicable to companies in the BVI, whether public or private, that are conducting business in the BVI or elsewhere for the purpose of commercial trading or asset-holding. The BVI Business Company is the sole type of company that is available, however, it is extremely flexible and can have a wide variety of different forms including the company limited by guarantee, hybrid companies or segregated portfolio companies.
Full compliance with international requirements
As mentioned above, there is no local corporation tax, therefore BVI BC is not subject to it. As a result, it is in compliance with the OECD’s definition of “fair” taxation principles and the EU Savings Tax Directive and Code of Conduct on Business Taxation, since there is no discriminatory treatment between resident and genuine “offshore” companies incorporated in a single jurisdiction.
The BVI Company Registry is maintained by the British Virgin Islands Financial Services Commission (BVI FSC), which supervises the industry and ensures high standards of service provision.
The Company Registration in BVI Package Includes the Following Company Documents:
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Certificate of Incorporation issued by the BVI registrar of companies
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Memorandum of Association stamped by the BVI registrar of companies
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Articles of Association stamped by the BVI registrar of companies
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Register of directors
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Register of shareholders
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Resolution of appointment of first directors
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Written resolution adopted by the directors upon incorporation
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Share certificate
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Consent letter of the director
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Other documents depend on the services ordered after company registration.
** Payment Plan Also Available For New Incorporations
