Benefits of forming offshore company in the BVI
The British Virgin Islands (BVI) is a British Overseas Territory located in the Caribbean. Offshore company formation in the BVI is a popular option for businesses and individuals looking to establish a company in a well-regulated and tax-efficient jurisdiction. In this blog post, we look at the benefits of setting up an offshore company in the BVI, and provide an overview of the process for doing so.
Forming a company in the British Virgin Islands is a great way to establish a presence in this tax-friendly jurisdiction. There are a number of benefits to company formation in BVI, including:
- Tax-free status: Companies registered in BVI are exempt from all local taxes, including corporate income tax, withholding tax, and value-added tax.
- No capital gains tax: There is no capital gains tax in BVI, so you can rest assured that your profits will be kept intact.
- Low registration fees: There are minimal registration fees associated with company formation in BVI, making it an affordable option for businesses of all sizes.
- Flexible incorporation requirements: The requirements for company formation in BVI are relatively flexible, making it easy to meet the necessary criteria.
Types of Company in BVI
The BVI is one of the most varied financial centres across the world when it comes to company and trust structures. The following are some of the names or suffixes that may be used to register new IBCs in the BVI:
- Limited/Ltd
- Corporation/Corp
- Incorporated/Inc
- Societe Anonyme/Sociedad Anonima (S.A.)
The BVI company search allows the registration of company names in (Mandarin) Chinese, making it a popular offshore choice for clients from China Hong Kong and Taiwan.
Company Limited by Shares is the most common type of company in the British Virgin Islands. This type of company is owned by shareholders and has a board of directors. The shareholders elect the board of directors, who are responsible for the management of the company.
Documents to prepare for BVI Incorporation
Documents required from BVI company registry include:
– The completed application form
– The company’s memorandum and articles of association
– A copy of the passport or other identification document of each director and shareholder
– A copy of the passport or other identification document of each registered agent
– A certified copy of the company’s certificate of incorporation
– A certified copy of the company’s memorandum and articles of association
– A certified copy of the company’s certificate of good standing
– The registered agent’s original Power of Attorney, if applicable
Company registration process in the British Virgin Islands
Forming a company in BVI is simple and straightforward. The first step is to choose a name for your business. Your company’s name must include the word “Limited” or “Corp.” and cannot be identical, or too similar, to an existing company name.
The next step is to choose your company’s registered agent. This is the individual or company who will officially represent your business in BVI. They will be responsible for filing all important documents and handling other administrative tasks on your behalf.
Once you’ve chosen a name and registered agent, you’ll need to set up a corporate bank account. This is where your company’s funds will be held and can be used for a variety of purposes, such as paying taxes, salaries, and other business expenses.
The final step is to file your company’s Articles of Incorporation with the BVI Registrar of Companies. This document will outline important details about your company, such as its name, registered agent, and corporate objectives.
Once your company is officially registered, you’re ready to get to work! BVI is a great location for businesses of all sizes, and with our help, you can get your new company up and running in no time.
Estimated cost and annual maintenance
Setting up a business in the British Virgin Islands saves on annual reporting and tax filing obligations, but it comes at a cost: an annual fee to maintain your company in good standing.
The government costs to establish and run an IBC issuing less than 50,000 shares have been increased from US$350 per year to US$450 per year as of January 1, 2018.
BVI IBCs are also cost-effective when clients seek for a company to hold their assets or operate as a business entity for trading and investment holding purposes due to their lack of residency director and corporate secretary requirements.
Key Takeaway
If you are looking for a well-regulated and tax-efficient jurisdiction in which to set up an offshore company, the British Virgin Islands should be at the top of your list. At FastLane, we have years of experience helping businesses and individuals establish companies in the BVI, and can guide you through every step of the process. Contact us today to find out more about BVI company registry.
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