British Virgin IslandsThe British Virgin Islands (BVI) remains a British colony, and retains its English common law background. It has its own government; its legal system is also firmly British based. It has long been stable. It is just east of the US territory of Puerto Rico and is a popular tourist location. The national language is English, and company documentation is and must be in English. It official currency is the US Dollar. BVI has good professional and business infrastructure. The BVI offshore company has long been the most popular (especially for entrepreneurs and small businesses) with around 300,000 of them having been formed in the past decade.
Offshore Companies:
BVI has long existing (1984) and well proven legislation permitting companies to be rapidly and simply incorporated for the purposes of conducting offshore business operations in the form of an International Business Company (IBC).
Setting up an IBC:
The registered agent (supplied by NACS) for the new company being formed files the company’s memorandum of association and articles of association with the company registry (after being signed), along with a compliance certificate from the registered agent. The company can be incorporated within 1-2 days.
Buying an IBC:
NACS offers off the shelf companies upon request. Name changes can be accomplished rapidly.
Company name guidelines and restrictions:
The name must be in the Latin alphabet, any name can be chosen provided it is not already in use, it is not obscene, and it does not imply insurance, banking, royal, or governmental related operations or sponsorship. It must end with an approved company designation or abbreviation (Limited, Incorporated, Corporation, Societe Anonyme, Sociedad Anonima, etc.). Names implying or conveying an involvement in banking, investment, or insurance operations require consent.
Capital Requirements:
No minimum level required.
Local Registered Office Requirements:
An IBC must always maintain a registered office in the BVI, and must appoint and retain a resident as the company’s registered agent. NACS provides these services for a fee via its Bahamian associates.
Annual Company License:
This is acquired at the beginning and must be maintained annually thereafter. The annual license fees vary with the share capital of the company. Annual license fees not paid on time incur penalties.
Director Requirements:
At least one director must be appointed and maintained (who can be a corporate director – which can be supplied by NACS). There is no residence or nationality requirement.
Shareholder Requirements:
A minimum on one shareholder is required. No register of the IBC’s shareholders must be maintained at its registered BVI office.
Company Secretary Requirements:
A company secretary is not compulsory for the IBC: either a person or corporate, no nationality or residence requirements. NACS can perform this function, for a fee.
Share Types Allowed:
Registered or bearer shares are permissible. Bearer Share has to deposit with an authorised or registered custodian.
Taxation Requirements:
There is no taxation for an IBC’s operations, assets, or profits. Tax treaties do exist.
Exchange Controls:
There are no exchange controls.
Reporting Requirements:
No accounts or annual report are required to be filed.
Secrecy:
No explicit secrecy legislation for IBC’s, but English law places a clear and heavy responsibility on professionals to keep their client’s affairs confidential.
Annual Tax/Filing Fee:
There is an annual license fee that is based on the authorised share capital of the company: it starts at US$ 350.00 if the capital is under 50,000 shares and not permitting bearer shares.