As attractive as certain countries are in terms of company incorporation – like company incorporation in Singapore for example – many organisations are drawn to set up British Virgin Island (BVI) companies simply because of the various benefits that one can gain from them.
There are much information businesses can get about BVI company incorporation if one chooses to look.
Due to its vast popularity, you can go to many websites and search for everything you need to know.
BVI Pre- Incorporation Factors
- Difficult to open a bank account
- Bad Tax planning Instrument
- Bad International Reputation
Better Tax Planning Purposes Solutions:
- Malaysia Company Incorporation offers Full Tax Exemption for Foreign Source Income with more than 72 Tax Treaties
- Singapore Company Incorporation offers good International reputation and reliable banking system for international business
Advantage of a BVI Company Registration
There is countless news, legal documents and reading materials to peruse in order to fully understand how BVI companies actually helps businesses. You can also go to consultancy groups which would be able to give you services on how to set up BVI companies. They have all the answers you seek in terms of the legislation and regulations in relation to this endeavour. Of course, there is already a system and process in place for incorporating BVI companies. This guide will tell you more about the details, benefits as well as trends.
As you know, there are many reasons to consider BVI company incorporation. A commonly known response to such offshore incorporation schemes is high scepticism that it is meant for illegal activities. The contrary is true. BVI companies enjoy tax free obligations and requirements. This is due to the fact that BVI companies are not required to pay tax. Additionally, the local government does not require much information from BVI companies when it comes to tax filing season. You would also not have to be physically present on the islands in order to hold communications and meetings with the other stakeholders. There is also no requirement to keep a record of minutes anywhere. These conditions definitely make BVI company incorporation a very popular choice especially among global organisations.
BVI Company Registration Process
Another advantage you can gain from a BVI incorporation is the fact that you are also not required to submit audited accounts. Privacy is of the utmost importance that is why in most cases, the identity of shareholders and directors are anonymous. However, one should be mindful that there are general requirements in setting up a BVI. For starters, there should at least be one shareholder and one director. The only condition is that these selected people should be above 18 years old. Another specific requirement is the fact that there should be at least one local company or person to act as the agent of the organisation on the islands.
Something you want to bear in mind when incorporating BVI companies is the fact that you can have Chinese names while registering your company. It is perfectly all right to have both Chinese and English name and this would be worthwhile to consider especially if you are thinking of penetrating the Chinese market.
The whole registration process is relatively painless, and it would only take a maximum of approximately 14 days. Once you have determined who your stakeholder and director is going to be, you will need to have necessary documentation ready i.e. their passports and ID cards. This should include information such as their full name, date of birth, address as well as nationality.
There is definitely already a well known trend for going into BVI company incorporation. However, over the years, a crackdown on so called tax havens have led to stringent controls over what BVI companies can and cannot do. Tax agreements have been filed to ensure that the local governments co-operate to hand over details of companies involved in illegal activities. Thus, any company thinking to incorporate in BVI with the intention of manipulating the system will be sought out and punished in the end.
However, rest assured that any Singapore company thinking of incorporating a BVI offshore company can also get a share of the benefits. Once you think about it, the advantages are definitely numerous. After all, there is hardly any compliance requirement which means that the director and stakeholder can run the business as they see fit. Definitely a very good thing would be the fact that the company would enjoy maximum tax efficiency since all dividends, interests and other incoming cash amounts and assets are exempt from income tax. This is surely a plus point for those who are looking into getting full mileage out of their company. There is also the consideration that the Singapore owners will not have to be located in BVI to run the business.
Singapore is definitely already a well-known business destination. After all, many multinational companies actually have addresses in Singapore. However, there comes a point when you need to do something good for your business and incorporating a company in BVI does exactly that.
At times like these, you would definitely need to consider the overall benefits for the company and the workforce as a whole. In fact, the profits gained from the BVI incorporation might prove to be a plus point for locals who hold jobs in companies with BVI counterparts.
Whatever the reason, it is worthy for consideration.
Categories: Tax Haven Company