British Virgin Island (BVI) is part of the Virgin Islands that lie to the eastern side of Puerto Rico in the Caribbean. In addition to being a holiday destination, it has also emerged to be a perfect place for offshore company incorporation.
Though it is a British Overseas Territory, the island enjoys a lot of independence that has enabled its administration to advance a business economy. Whether you are an established business and want to setup a branch or start an entirely new enterprise, BVI is one jurisdiction that will never disappoint. Here is a comprehensive guide on company incorporation BVI.
The main benefits of registering a company in BVI
BVI has won the tag of the most preferred investment hub across the globe. Over 40% of foreign companies are registered in BVI. Besides, it uses English as the official language. This means that you can easily craft the documents and complete the registration procedure. Note that as a British territory, you have access to the larger UK market and all the countries it has entered into DTAs with.
The jurisdiction does not have income or corporate taxes. All the incorporations registered in BVI are not obligated to pay taxes. However, it is important that all US citizens report their income when working in the jurisdiction.
BVI is a leading financial hub. Many banks that want to reach the large number of companies getting registered in BVI ensure to have their branches or headquarters in the jurisdiction. This is a guarantee that you will always have a place to source funds for business growth.
The main types of companies you can form in BVI
The company registration in BVI is guided by the British Virgin Islands Act of 2004. Under the act, there are five types of companies that investors can incorporate in the jurisdiction.
- Companies restricted by shares.
- Companies restricted by guarantee (these companies cannot issue shares).
- Companies that are restricted by guarantee and can issue shares.
- Unlimited companies that cannot issue shares.
- Unlimited companies that can issue shares.
The company incorporation BVI requires the following documents
The process of registering a company in BVI closely mimics that of the UK. To incorporate a company, you need the following documents and particulars.
- Articles of Association.
- Memorandum of Understanding.
- A company secretary.
- The company’s address.
- Details of the company secretary, shareholders, and directors. These details include copies of their passports, proof of address, and contacts.
The public records and annual meetings
BVI companies are not required to share any information about their directors, shareholders, or owners on public records. This is aimed at helping enterprises to maintain total confidentiality. The only public record that carries the details of the company directors and shareholders is the Articles of Association.
Unlike other jurisdictions that require companies to hold their annual general meetings locally, BVI is different. The BVI Companies Act of 2004 requires companies to hold annual meetings but anywhere in the globe. This makes it one of the most liberal jurisdictions across the globe.