There are different BVI company registrations that can be done within the islands. Under the jurisdiction of the British Virgin Islands Business Companies Act 2004, companies incorporated can now be limited by shares. This proves to be the case for most companies incorporated and registered in BVI. Another type of incorporated company which is popular for not-for-profit companies are those which are limited by guarantees but would not be able to issue shares. There is also the incorporated company which is limited in guarantees but are authorised to issue shares. This type of company is rising in popularity simply because it gives a higher autonomy to internal business owners in terms of overall corporate structure. The last two types of BVI company registrations are unlimited companies authorised to issue shares and unlimited companies not authorised to issue shares. The main benefit for the former is that this type of company encourages higher level of transparency while the latter is typically used for estate management.
BVI company registration form is also highly straightforward and easy. There are a few requirements that international business owners will need to meet. Once all conditions are accounted for, they would be able to proceed with setting up operations on the British Virgin Islands. Currently, a company can be incorporated in BVI with only one director and one shareholder. These entities need not necessarily be individuals – they can be made up of two separate corporations. Additionally, it is not required by law to have any corporate officers and bearer shares are allowed. Another advantage which points towards the flexibility of setting up an internal office in BVI is the fact that there is no legislation in place which requires and annual general meeting to take place. Instead, the directors of the company determine the type, frequency and updates of company records. It is also not necessary to inform the BVI government of the identities of either the directors or shareholders. The popularity of BVI company registration stems from this factor.
Of course, there is only one main reason why BVI company registration is on the rise and this has to do with taxes. Many people seem to regard conducting and setting up businesses in BVI as highly illegal because they have the impression that there is tax evasion involved. The truth could not be farther from that since BVI legislation framework has been put in place to ensure that taxation is low when compared to other countries yet still within the confines of the law. As such, it would not be accurate to state that BVI international business companies are involved in illegal activities. In BVI, corporate tax for both local and international companies remain at 0%. Probably one of the few fees that international companies would need to pay are stamp duties on certain transactions as well as property taxes. Thus, BVI company registration ensures that international business companies there only pays the minimum amount of tax.
In conclusion, it therefore can be said that BVI company registration is a highly viable option for those who are looking into international tax planning. After all, where else would you be able to locate your company in a country that practices such flexible and attractive corporate tax rates? As a registered BVI incorporated company with an office on the islands, you would also be eligible to operate a company bank account with minimum fees. However, you are reminded to be mindful of the fact that you would still be operating in BVI as an offshore entity and there might be other legalities involved in the whole process. As such, it is always better to contact professional financial informative services for help with regards to your BVI company registration endeavour.
At Paul Hype Page, we provide full corporate services to establish and administer BVI Business Companies in accordance with local regulations. We work closely with you to provide as comprehensive a company formation and secretarial service as you require.