Company registration in the British Virgin Islands

The British Virgin Islands (BVI) is perhaps the most famous jurisdiction for holding companies worldwide. The flexible and business-minded legislation structure, full tax exemption, lack of publicly registered officials, quick incorporation procedures and efficient regulatory bodies make it a jurisdiction of choice in the offshore global arena.

WHY BVI?

WHY NOT?

OECD Whitelist Jurisdiction
No income tax
No withholding tax on dividends, royalties, interest or rental income
No capital gains tax from the sale of shares and other securities
No property, wealth or inheritance tax
No foreign exchange (FX) gains
No stamp duty on share transfers and other business transactions (with the exception of land-ownership transactions in the BVI)
No public search access to accounts, director, shareholder or beneficial owner information
BVI companies are permitted to open bank accounts outside the BVI
Nominee shareholders are allowed which provides anonymity and security for the beneficial owners
A BVI company can be incorporated with 100% foreign ownership
1-3 days company formation

Strict economic substance requirements that may increase company maintenance costs. Furthermore, limited infrastructure and lack of qualified workforce make it difficult to satisfy these requirements. For more information, please see our Physical Presence in BVI section
Reputation of a known offshore tax-free jurisdiction may affect business operations with counterparties, complicate account opening and increase monitoring from financial institutions and tax authorities
BVI companies must maintain a Significant Controllers Register (beneficial owner information) which is open for inspection by law enforcement upon demand
Restrictions on some business activities
The controlled foreign companies (CFC) rules mean automatic exchange of tax information
IBCs are not permitted to trade or own real estate in the BVI
High government renewal fees for companies with a large share capital and for Restricted Purpose Companies

Unlike several other tax-free zones today, in order to benefit from the incentives that the BVI jurisdiction has to offer, a company is required to comply with the local substance requirements. It is, however, worth noting that the BVI has a substantial advantage over other tax-exempt jurisdictions in the respect that it has never been blacklisted and is currently a member of the Organization for Economic Cooperation and Development (OECD), the International Organization of Securities Commissions (IOSCO), the Caribbean Financial Action Task Force (CTATF), making it an attractive jurisdiction for higher profile offshore business structures with active banking operations. Moreover, the BVI has signed the Multilateral Convention on Mutual Assistance in Tax Matters and Common Reporting Standards (CRS) making it fully compliant with the Financial Action Task Force (FATF) and international KYC and anti-money laundering directives.

Though a BVI limited liability company may be an excellent choice for a variety of business models, the BVI also prides itself in offering a very unique financial instrument – the Restricted Purpose Company. In brief, a restricted purpose company may only lawfully undertake activities and transactions within its specified purposes prescribed in the company's Memorandum of Association, limiting its liability to a particular business activity or transactions. This exclusive financial vehicle is useful in transactions where a rating agency, lender or similar entity involved in securitizations might require that the company be viewed as truly insolvency or bankruptcy remote. Contact us today and our knowledgeable team will gladly advise you if a BVI company is the right choice for your business.

Corporate Features of a BVI LLC

GENERAL	LLC
Incorporation Time	1 -3 business days
Local Registered Agent Required	Yes
Local Registered Address Required	Yes
Migration of Domicile Permitted	Yes
SHARE CAPITAL
Minimum Share Capital	USD 1.00
Minimum Paid Up	No Minimum
Maximum Share Capital	No Maximum
Bearer Shares Allowed	No
SHAREHOLDERS
Minimum number	One
Maximum number	No Maximum
Publicly accessible records	No
Corporate shareholder allowed	Yes
Annual General Meeting Required	Yes
DIRECTORS
Minimum Number	One
Maximum Number	Twenty
Local required	No but strongly recommended
Publicly accessible records	No
Corporate directorship allowed	Yes
COMPANY OFFICIALS
Secretary Required	Yes
Local Secretary Required	Yes
Other Officials Required	No
COMPANY ACCOUNTS
Requirement to Prepare	Yes
Requirements to File Accounts	No
Audit Required	No
OTHER ANNUAL REQUIREMENTS
Government Renewal Fee	USD 450 for companies with up to 50,000 shares, with or without par value USD 1200 for Company with more than 50,000 shares, with or without par value USD 7500 for a Restricted Purposes Company
Annual Return	No
Tax Return	No
Submission of Economic Substance Report	Yes

For more information on the British Virgin Islands, contact our corporate team. Our firm can provide you with all the expertise you require, including bookkeeping, management services, account opening, substance and more.

Company registration in 3 easy steps

1 Choose your package
2Submit documents
3Get registration documents
Start

Order a 30 minute videoconference consultation for free

Order a consultation