BVI

The Benefits of BVI Company Formation

Some of the reasons why you will want BVI Company Formation are as follow:

Maximum security of assets includes the ability to transfer domicile

• For the profit of an IBC the directors can defend the assets of the
• All the foreign business firms are free from every kind of local taxes and Stamp duty.

Many flexible corporate features provide the company easiness of operation, management and control. All the shares can be issued according to the settlement excluding cash, including or excluding par value. Just a single shareholder is needed. And similarly just one director is appropriate as well. The meetings of shareholders’ and directors’ are not just restricted to the British Virgin Islands. All the records financial or operational can be kept anywhere. It is not necessary to hold the annual meetings or anything like that. There is no major difference considered in any kind of IBCs whether private or public. The incorporation process is simple and completed in one or two days.

BVI Company – Extensive range of applications

A BVI company can provide you an extensive range of applications such as better investment, property share, financial management, trading and copyrighting and/or licensing. All the private labeled trust companies are free of major restrictions, regulations and requirements.

Cost effective BVI company formation

In BVI, formation of the company is lowered cost as compared to many other conventional trading centers. The fees are almost same as that of Liberia and Panama. In addition to that the BVI Company allows you to enjoy more asset protection offshore advantages along with more stable political conditions.

Forming a BVI Company

The BVI is a globally distinguished offshore financial center and its primary offshore transactions include the following applications:

• Non Resident Company Limited by Shares
• Non Resident Private Company Limited by Guarantee
• Non Resident Hybrid Company
• International Business Company
• International Limited Partnership and the Trust

Among the above stated applications, the BVI’s most commonly used medium is the International Business Company because it usually takes in the form of a private company limited by shares. It is clear that the International Business Companies Act 1984, which was amended and implemented by the International Business Companies (Amendment) Act 1990 and the International Business Companies (Amendment) Acts of 2003 and 2004, is the authoritative regulation.

Due to a lot of discretions, the distinction of IBC is then under unambiguous arrangements:

• Local business undertakings are forbidden
• There is zero ownership interest in real property if ever so happened that the BVI Is acceptable, property is allowable for loan however for office use only
• Once a convenient license is released, banking or trust insurance or re-insurance business is permitted
• Participating in the company management’s affairs or giving out of registered accommodation for BVI Incorporated companies is definitely not authorized.

International Business Companies are very much allowed to acquire their own equal fractional part in other BVI companies, keep in existence their own bank accounts in the constitution and hire contractors.

According to the International Business Companies (Amendment) Act of 2003, from December 31 2004, it clearly states that all International Business Companies based in BVI is highly recommended to stabilize and maintain a Register of Doctors and will be asked to commission their first supervisor within the 30 days time frame of the IBC’s affiliation.

Notwithstanding, other legal prerequisites are very basic and manageable:

• There is only one supervisor and shareholder allowed
• The shareholders, supervisors and the rest of the committee does not have to be a resident and there is no absolute specification of their nationality
• It was agreed that there will be no minimum investment requirements and shares that are either already noted down or the beneficiary and  may be delivered in any medium of exchange (the beneficiary’s share has to be transferred with an official connection that chronicles the beneficiary’s identification)
• Accounts need not necessarily to be kept. If it is however hidden, there will be no requirement for an audit or verification.
• No returns will be asked from the shareholders, directors and appointed officers
• Meetings and other official functions can be done through phone calls and does not have to be held in the BVI.
• Confidentiality insures The Memorandum and Articles of Association are the only testimony and files to be held on the general records.
• IBC regulation authorizes an establishment united outside of the BVI to be accommodates in the BVI subordinating this ordinance.
• The name or title of the association may be in any form of language but the words Limited, Corporation, Incorporated should appear in it.
• It is mandatory to designate a registered agent in the BVI to consolidate an IBC.

 

British Virgin Islands Company operations

The BVI BC Act of 2004 substituted every single surviving regulation as mentioned in the constitution and procedures of offshore companies. It has contributed to BVI’s integrity and credibility when it comes to discovering an offshore company. The British Virgin Islands IBC’s arrangement operation nonetheless is furthermore fast and capable.  Below is the conventional development:

For individuals, the following documents and credentials are needed:

• A completed written request or appeal including the specification of the selected name and beneficial supervisors and shareholders (their race, current residential country, address, occupation, etc.)
• A validated and scanned copy of the passport of the beneficial supervisors and shareholders.
• A duplicate copy of a legitimate document (Driver’s license, Identification cards, etc.) approved to assure that the photocopy is genuine.
• An individual’s original residential evidence presenting the name and the address. This document can be a utility bill or a statement of accounts provided that it should not be more than 3 months old.
• An original written acknowledgement of initiation that could possibly come from a bank, lawyer, and accountant or of any related profession.
•  A concluded and signed Beneficial Owners Declaration or BOD by all shareholders and supervisors.

For a BVI Company, the following documents and credentials are needed:

• An authorized reproduced copy of the Certificate of Incorporation
• An authorized reproduced copy of the Company’s Memorandum and Articles of Association
• An authorized reproduced copy of the Registered Shareholders alongside with information of shares controlled under each
• An authorized reproduced copy of the Register of Directors
• An authorized reproduced copy of the Register of Offices
• For at least two of the Supervisors or Directors, the important documents mentioned in the “Individual Category” above.
• Afterwards, Eltoma will then send out an itemized bill for a British Virgin Islands Company Formation. Soon after receiving the money, Incorporation transaction begins.
• The Memorandum and Articles of Association and the other related documents needed to record and register a BVI BC are consequently commissioned to the Registrar.  The Memorandum of Association has to incorporate the following details of the Company:

1. The name of the BVI IBC
2. The Registered office’s address of the BVI IBC
3. The responsibilities, goals and purpose of the BVI IBC
4. The share investments of the BVI IBC
5. The justification of accountability of the BVI IBC

• If by no doubt that the Memorandum of Association is confirmed, therefore a Certificate of Incorporation will be released
• A Certificate of Incorporation and Memorandum and Articles of Association of the Company needs to be surrendered to the Company’s Registry by the time of the Company Formation. For incorporation, there will be no further documents needed. In addition to that, all of the information and documents does not pertain to the identification of the supervisors, directors and shareholders hence preserving confidentiality and integrity.

The Company’s Supervision and Administration Protocols

Share Investments and Capital of BVI IBC:

• For a BVI IBC, there is absolutely no minimum capital or investment requirement
• There is no restrictions as to the number of shares however, Bearer shares are under the conditions of the custodian service and higher constituted authority permission and license charge.
• May be formed with a single shareholder who may also function as the director.
• Nominee shareholders are by far acceptable

Directors of BVI Company:

• A minimum of a single director is needed who may also function as the shareholder
• Directors and/or Supervisors could either be an individuals or united group entities.
• Nominee directors are by far acceptable

Name and Activity limits to BVI Company:

• The name or title of the Company must be different and unlike any other current and existing names.

Local Conditions of a BVI company:

• The registered offices of the BVI must be well maintained. The files and documents needed to be deposited in the registered office are as follows:

1. Memorandum and Articles of Association and other ameliorations
2. A Copy of the Register of Members or Share Register of Charges. An establishment will only be a resident if it succeeds to have a registered office in the BVI

• Annual meetings are not necessary however, if it needs to push through, It can be held anywhere else in the world.
• A Company secretary or assistant is optional for assimilating a BVI IBC.

Confidentiality of BVI Company:

• The Register of Members, Register of Directors and the minutes and settlements made by the company will not be exposed on the public documentation.
• The Company’s beneficial owners, directors and shareholders will be held private and personal and will not be accessible to the public.
• The Memorandum and Articles of Association are the only credentials that will appear on the public records and does not include any information about the beneficial directors or shareholders.
• The use of nominee directors and shareholders are permitted and may be used to maximize and guarantee upmost privacy

Time Frame:

BVI Company’s Incorporation is extremely quick, only takes 1 to 2 working days, can be established quicker by shelf, but this is a bit more expensive.

BVI Trusts

For over 3 decades, Trust Management has been a priority in the British Virgin Islands. Since the very beginning, Trust was generally used by affluent individuals from the greater common law countries and nationalities yet it is now currently favorable as a major procedure of asset conservation all over the world. It has a basis on the common law which is the English Trust Law. The BVI Trusts were created under the Trust Ordinance 1961 (English Trustee Act 1925) as amended by the Trustee Amendment Act 1993.

Ever since the 1993 Act, there were no prerequisites for the registration of trusts in the British Virgin Islands. Public announcements of details concerning the trusts and trustees were cleared from any requirement to record annual returns and other requirements. In addition, a Trust duty of $50 needs to be paid on each trust instrument. It is acquired through purchasing and attaching stamps forming no records. The Amendment Act presents secured constancy period of no more than 100 years.

A greater part of the BVI trusts are free from the charges levied by the government just as long as there are no beneficiaries resident in the BVI and that the trust does not carries out any business or owns any property in the jurisdiction. The Amendment Act administers the assignation of a “Protector of Trust”, adequately a supervisor of the trustee/s and the managing and caretaker of trustees. A company who offers trust services and assistance should attain a license under the control of the Banks and Trust Companies Act 1990 and must adapt to distinctive circumstances.

BVI TRUSTS

Last 2003, BVI accomplished a constitution that implemented a presentation for an action created by the Society of Trust and Estate Practitioners (STEP) to correct the trust law in the BVI. The three separate statutes will bring the BVI trust law up to date.  Consequently, the BVI Special Trust Act forms the “VISTA” trust. This Act grants an individual to arrange a trust to hold shares of a fundamental BVI IBC outside the restraints of the English Trust Law.

 

Taxation of BVI Companies

The BVI has no capital gains or capital transfer tax, inheritance tax and definitely no sales tax. The principal tax for the resident companies is the income tax.

There are stamp duties on a number of certain business dealings and property taxes. The International Business Companies however are absolved from income tax and stamp duties.

The BVI caters to the two old double tax agreements, Japan and Switzerland, which were adapted through “Coat-tail provisions” of two UK contracts. These contracts were now abandoned but the old ones still remain in force.

The treaties were importantly never used furthermore, BVI International Business Companies are free from the BVI taxation and the idea of the double taxation does not anymore apply.

 

Banking in BVI

Banks are organized under the Banks and Trust Companies Act of 1990. It is under the supervision of the Inspector of Banks, Trusts and Company Managers and are authorized under three classifications:

1. A General Banking License that allows all forms of banking actions
2. A Class 1 Restrained Banking License that allows international business only
3. A Class 2 Restrained Banking License that allows the administration of banking business only including the identical parts named in the license.

The banking area has been confined to a limited number of international banks as a portion of the jurisdiction’s assurance to block money laundering. Currently, there are 7 banks in the British Virgin Islands and that includes Barclays Bank and Chase Manhattan.

Employment Regulations:

The Labor Act in the BVI is agile. There are no trade unions in the BVI. Majority of the pay negotiations are being catered straightforwardly between the employers and the employees. The constitution setting is of the low minimum wage.

In order to be employed in the BVI, a work permit is required (except for “Belongers”, accustomed citizens and certificate of residency holders). These work permits are released only if there is no appropriate local candidate of the said job.

 

British Virgin Islands Geography and Culture

• It is approximately 153 square kilometers (59 square miles)
• Tortola, 54 square kilo meters (21 square miles)
• Anegada, 39 square kilo meters (15 square miles)
• Virgin Gorda, 21 square kilo meters (8 square miles) with a somewhat warm and humid climate.
• 90% of the 19,000 population is of mixed black, White, Chinese, Indians, Portuguese, Middle- East origin.
• English is the accredited language but a few speaks Spanish.
• Literacy: 98.2% of the total population.

 

Immigration and Residency into the British Virgin Islands:

All non-residents alongside British citizens, needs to acquire a passport to be admitted into the BVI. However, for Canadian and US Citizens, a birth certificate and certificate of citizenship or voter’s registration card are the documents required.

Visas are issued for up to six months of visit as long as there is an onward ticket and proof of adequate cash reserve.
Legal and Political System of BVI

The political system of the British Virgin Islands can be called a constitutional democracy and Queen Elizabeth II has the executive power to rule. The democracy runs via parliamentary and ministerial setups. The Legislative Council, also called the Parliament, has 13 members who are office bearers for 4 years at the most and represent 9 districts and 4 across the country. The government can be divided into three bodies: the Executive Council, the Judiciary and the Legislative Council.

The Queen’s ambassador is the Governor who holds exclusive responsibility for the Courts, the Public Service, the Police, and Foreign Affairs.

The Governor, on the Queen’s account has the Executive Authority of the Virgin Islands and can therefore, direct orders in person or via officers under him. Although personal accountability for specific functions resides with him, the Executive Council acts as an advisory body for the execution of various powers and is deemed as the highest authority on policy matters in the region. Setup under section 14, Order 1976 of the Constitution of Virgin Islands, the Executive Council is held responsible for overlooking the Government of the Virgin Islands and is therefore, accountable to the Legislative Council.
The National Democratic Party was victorious in the 2003 elections.

Incorporation BVI Company Economy

In the last ten years, the BVI economy has boomed and seen drastic changes. The tourism industry, especially, has flourished a lot along with the offshore business sector. Both these two export sectors constitute 70% of GNP, 65% of employment and 75% of the Central Government’s recurrent revenue, every year. The economy has changed course from tourism and into offshore financial services.

During the last ten years, the BVI has witnessed stability in growth and the economy has become an international trade hub with the public sector thriving under strong leadership and an influx of investment. Policies in the past have culminated in an environment that has fostered private sector development which is evident from the 800 trade licenses and 450 corporate entities. The legal framework catering to the commerce side has intensified, red tapism has reduced, and subsidy and franchise offers have been framed to boost local as well as foreign investment. Lately, technical assistance programmes, business seminars, and workshops have been started to aid the small business sector.

BVI COMPANY— Country Profile

The BVI and its community who are called British Virgin Islanders constitute a British dependent territory with its external affairs, defense and public service sectors vested under the Queen’s power, who is the Head of State and has a Governor as her ruling symbol.

The democracy consists of a domestically appointed parliament comprised of the Executive and Legislative Councils. The BVI provides security and political stability inherent in the British tradition.

Communicating with the BVI is rapid and simple. The telecommunications network is well-developed with a contemporary telephone, e-mail and fax service. The BVI has a strategic positioning close to the US Virgin Islands and Puerto Rico with flights to and fro from the airport at Beef Island. It is joined to the main island of Tortola via a bridge.

The BVI is a fantastic place to reside, tour or conduct business. There are ample types of dwellings available from resorts, family-type villas, smaller inns and hotels which can be chosen according to your needs. Tourists usually travel by yacht which comes to the marinas that are dispersed all over the islands, most of which are uninhabited. The bigger islands comprise of Tortola, Virgin Gorda, Anegada and Josh Van Dyke. The capital is located in Tortola by the nam Road Town. The total population of the BVI is estimated to be 19,000.

The two major sectors in the island’s GDP are tourism and off-shore financial services. The tourism industry has state of the art yachting opportunities and white, sandy beaches in the Caribbean Sea. The islands are diverse e.g. Anegada, a smooth coral island is different from Tortola which is hilly and has many vantage points to see the picturesque scenery. The culture is rich with island art, music, dance, local history and cuisine. The events held annually are numerous signifying the diversified culture.

As far as the offshore financial services sector is concerned, laws were ratified form 1984. However, in 2004, a new law was enacted, the BVI Business Company Act. It was a revised and updated version of the BVI company act to provide simplified legislation for BVI organizations.

From the beginning of BVI international business companies, the BVI has housed a reputation for giving professional service with integrity and simultaneously, maintaining confidentiality of offshore companies. The business infrastructure includes many sectors such as international banking services, corporate services, re-invoicing, accounting, mutual funds, captive insurance companies and legal services which result in making BVI a real financial hub.

BVI INCORORATION

One chain of islands worth visiting and doing business is the British Virgin Islands. They make up over 60 islands that are grouped together in the Caribbean. The closest point of reference is the fact that they are situated 90 miles east of Puerto Rico. Not all islands are inhabited from the group of 60, only 16. The most famous islands from the group are Virgin Gorda, Jost Van Dyke, Anegada, and Tortola. All of these mentioned islands belong to the British Crown and have Commonwealth membership.

There’s no direct airline which can take you from the United Kingdom to one of the British Virgin Islands. Not even the British Airways are able to assist you in this matter. The entire route consists of 12 hours of travel. There are two transit points one in Antigua and the other Beef Island. People who have kids and families that need to help people with disabilities have a difficult time making the trip.

Making you way around BVI

Once you’ve made it to Beef Island you will manage to make your way to the adjacent island of Tortola. Its capital is Road Town. You can make the trip easy with a cab, it’s about 30 minutes travel. If you are looking to create your own travel company in the area then it’s recommended you create a trust within the jurisdiction of BVI. Once having done so you will be able to benefit from the corporate law which supports a tax free policy on the island.

The British Virgin Islands have adopted the English common law. They have also been set up as a regular formation in terms of doing business. Companies with residence are the ones that are restricted by shares but they have found means to conduct business here. Companies that don’t have residency here and are limited by shares follow the same rules and guidelines to resident companies.

A company that’s restricted by guarantee is resident or a non-resident. You can create a company according to the Companies Act. This resembles a private company which is limited by shares. The minimum amount of members which a company needs to include is 5. There are other types of companies which are exempt from The British Virgin Islands taxes such as Trusts, limited partnerships and International Companies who do business all over the Globe. These companies aren’t forced to pay BVI taxes, such as stamp duty which includes annual license and registration or otherwise known as franchise fees. It is possible to administrate an International Business Company from the British Virgin Islands, also known as a BVI IBC

The number of companies operating under this form reaches 500,000. These companies conduct business primarily with Hong Kong and have their roots spread across Latin America. Their major range of clients comes from these two locations. A BVI International Business Company is created as an asset protection vehicle. At times it’s created in agreement with a trust. The company is able to hold shares as well as additional assets.

The infrastructure on the British Virgin islands is good. Telecommunications are also more than decent. The main language spoken on the BVI’s  is English. The BVI legal system follows English law. Many people have found these islands as an ideal camp of operation in terms of doing business.

The professional service sector supports trusts, insurers, offshore companies, mutual funds to conduct business on the islands. Since the law is quite permissive from the business standpoint and the fact that the Government is in agreement to people’s needs of conducting business many companies have been set up here. The law helps companies keep a flexible business policy while at the same time staying away from criminal activities such as money-laundering. The jurisdiction is affordable, more so it’s cost effective. The process of incorporation for one BVI company doesn’t take more than a day. The process takes longer for banks, trusts, and insurers.

 

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