British Virgin Islands

INTRODUCTION

The British Virgin Islands (BVI) is a small group of Islands situated in the West Indies with a population of 12,000. It is a British Crown Colony and is regarded as being very stable politically. It is a common law jurisdiction based on English Common and Statue Law with variations introduced by local legislation.

It is a Parliamentary Democracy on the Westminster model. The Queen is the Head of State and the final court of appeal is to the British Privy Council. The BVI is now the world’s most popular jurisdiction for the establishment of offshore companies.

INTERNATIONAL BUSINESS COMPANIES

The International Business Companies Act 1989 was a “landmark” piece of legislation, which gave birth to the concept of the International Business Company (IBC). One of the features of the IBC is that there is no requirement to file details of directors, shareholders, mortgages or charges. However banks and other lending institutions are often unhappy about the lack of such information and recent legislation now allows a company to voluntary file such information. Being able to file details of Mortgages and Charges is a great advantage in obtaining the best rates for borrowing.

There is a requirement to maintain a registered office and an authorised and licensed registered agent in the BVI. We provide this service as standard.

TAXATION/FISCAL REGIME

There is domestic taxation in the BVI, but IBCs do not pay tax so long as their operations are conducted outside of the BVI. There is no requirement to file financial statements, but a company must keep records to accurately reflect its financial affairs.

IBCs pay a flat annual filing fee of US$350 upon incorporation and thereafter each May or November dependent upon which half of the year a company was incorporated. There are substantial fines for late payment.

INCORPORATION TIMESCALE/NAMES

Suffixes such as Limited, Ltd, Incorporated, Inc, SA or most others are permitted. Allowing for time differences, names can be checked and reserved instantly and incorporation takes place on the same day. Certain words are prohibited or subject to licensing requirements such as “Royal”, “Trust”, “Bank” and “Insurance”. Even using courier services it can take up to 2 weeks to receive documentation from the BVI. Because of this it is our practice to try and keep a number of “Stock” or “Shelf” companies available for instant transfer once we have received completed application forms and payment.

FEES FOR BRITISH VIRGIN ISLANDS IBCs

We charge £750 to incorporate a BVI company. This includes the first year’s registered office and registered agent fees and all government fees. Thereafter there is an annual fee (due on 1st January or 1st July each year) of US$570 again including registered office, registered agent and government fees.

We can help and advise you in respect of the opening and management of bank accounts and the provision, if required, of company officers or managers.

HOW TO ORDER

Simply call us on 01952 270270 or send an email to:

ymf@arcorporatesecretaries.co.uk

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice. We do not accept any responsibility, legal or otherwise, for any error or omission. Prices are subject to change.