Recently, we discussed how the Cayman Islands is a great place to open an offshore company. Aside from that territory, the British Virgin Islands (BVI) is also a beneficial place to open an offshore company.
We discussed in our previous article why the Cayman Islands are a great place to start an offshore company. In addition, the British Virgin Islands (BVI) is also well suited to open offshore companies.
According to TMF’s Global Business Complexity Index (GBCI), in 2021 the BVI was the sixth least complex jurisdiction among 77 jurisdictions to open an offshore company in. The mandatory involvement of an agent to register with the authorities makes the BVI a slightly more complicated place to operate in, compared to the Cayman Islands.
According to the TMF's Global Business Complexity Index (GBCI), in 2021, the BVI ranks sixth out of 77 jurisdictions that set up offshore companies in terms of complexity. The mandatory requirement for an agent to register with the authorities makes the BVI a slightly more complex place of business than Cayman Island.
However, the BVI’s popularity in being one of the first choices for incorporation has not decreased. There were a total of 36,178 new companies opened in the BVI last year (BVI Company Search).
However, the BVI's popularity as one of the preferred places of registration has not diminished. A total of 36,178 new companies opened in the BVI last year (BVI Company Search).
Why the British Virgin Islands?
Why the British Virgin Islands?
· Tax-neutral jurisdiction: There is no corporate income tax or capital gains in the BVI. It is also tax-free to transact stamp duty, like the transfer of assets, shares, or other securities.
Tax-neutral jurisdictions: The BVI has no corporate income tax or capital gains. Stamp duty on transactions is also exempt from taxation, such as the transfer of assets, stocks or other securities.
· No director residency requirements: Many countries around the world require at least one director of the company to be a local resident or require the majority of members of the Board of Directors to be local residents. There are no such residency requirements for the director of the company in the BVI, so the company does not have to appoint a nominee director.
No residency requirement for directors: Laws and regulations in many countries require that at least one director in a company be a local resident or that a majority of the members of the board of directors be local residents. The BVI does not have such residency requirements, so the company does not have to appoint a nominated director for this purpose.
· Limited maintenance: Every BVI company is required to maintain an accounting record of each transaction for at least five years. However, an annual statutory report in financial statements is not required to be filed, nor is an audit required.
Worry-free maintenance: Every BVI company is required to keep accounting records of each transaction for at least five years, but is not required to file an annual statutory report in the financial statements or to conduct an audit.
· Confidentiality: While it is mandatory to register the directors to the Registrar, the file will not be public, providing privacy to investors.
Confidentiality: Although directors must register with the Registry, the documents are not made public, protecting investor privacy.
· Speedy incorporation: When all correct information and forms are submitted, the time to obtain the Certification of Incorporation could be as short as two working days.
Quick Registration: After submitting all the correct information and forms, the time to obtain proof of registration may be as short as two working days.
· No minimum capital requirement: There is no requirement for any monetary investment at the time of incorporation. Additionally, there isn’t a minimum share equity investment required for the company’s capital – the company can issue shares with or without par value.
No minimum capital requirement: There are no monetary investment requirements at the time of incorporation of the company. In addition, there is no minimum equity investment requirement for a company's capital – a company can issue shares with or without par value.
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What Do You Need for Incorporation?
What do you need to prepare?
· Memorandum and Articles of Association·
Articles of Association
· Certified individual shareholders’ and Directors’ address proof and passport
Proof of address and passport of certified individual shareholders and directors
· Certified corporate shareholders’ certificate of Incorporation, register of directors, and register of shareholders
Certified Certificate of Registration of Shareholders, Register of Directors and Register of Shareholders of the Company
· A reserved company name: words like “Bank,” “Trust,” “Insurance,” or “Fund” cannot be used unless there is a license or prior written consent from the Financial Services Commission
Reserved Company Name: The company name may not use the terms "bank", "trust", "insurance" or "fund" unless approved by the Financial Services Commission or with prior written consent
· A registered agent who is located in the BVI
Registered Agent located in the BVI
· A registered office maintained by the company’s staff and the registered agent
Registered office managed by employees and registered agents of the company
· A corporate bank account: We have more details about the bank account opening below
Corporate Bank Accounts: More details about opening a bank account can be found below
· After the application, the next steps are obtaining the Certification of Incorporation, preparing and signing the activation document of the new company, and preparing the whole set of the company kit.
After successfully submitting the application for company registration, it is necessary to prepare and sign the activation documents of the new company, preparing all the materials required by the company.
Want to incorporate in the British Virgin Islands? CanCan can help. We are experienced in incorporating any type of company while being in compliance with the BVI regulations.
Want to register in the British Virgin Islands? CanCan can help. While complying with BVI regulations, we are experienced in consolidating any type of company.
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A bank account is also crucial for incorporation. As the BVI is not a financial hub like Hong Kong or Singapore, the local banks do not really tailor their services to international businesses or require a face-to-face meeting at the bank to open an account. As of December 2021, there are only eight banks in the BVI (flatbkny). A corporate bank account is allowed to be opened from another jurisdiction, making it a better option for people who open an offshore company in the BVI, as they are likely to be located outside of the BVI.
Bank accounts are also important for company registration. As the BVI is not a financial hub like Hong Kong or Singapore, local banks don't really tailor their services for international businesses and don't need to open accounts face-to-face at banks. As of December 2021, there are only eight banks in the BVI (flatbkny). The BVI allows for the opening of corporate bank accounts in another jurisdiction, which is a better option for people who want to open an offshore company in the BVI as their company may not be located in the BVI.
The documents you generally need to open a bank account:
Documents generally required to open a bank account:
· Bank account application form
Bank Account Application Form
· Certified copies of identification for all directors and shareholders that include passport and proof of address
Copies of identification of all directors and shareholders, including passports and proof of address
· Certificate of Incorporation
Certificate of Incorporation
· Memorandum and Articles of Association
Articles of Association
· The company’s good standing status certification
The company is certified in good standing
· Business plan
Business plan
Want to open a bank account for your BVI offshore company? CanCan can help. We are experienced in opening bank accounts for offshore companies.
Want to open a bank account for your BVI offshore company? CanCan can help. We have extensive experience in opening bank accounts for offshore companies.