BVI Companies

When a person thinks about the British Virgin Islands, it is often that the thought of tax haven comes to mind. Maybe it is because we have been thoroughly exposed to movies and books that have given us the impression that there is something shady, illegal and not quite morally right about tax havens but BVI companies somehow fall into that category. However, with more than 1 million BVI companies registered and incorporated to date, there has to be something good about this form of offshore companies opting for this path. Prior to popular belief, the British Virgin Islands actually have stringent regulations which although not very similar to the regulating systems of other countries actually ensure that companies under its jurisdiction are given strict instructions to follow. Read on to find out more about the reason why the British Virgin Islands remains one of the best and most trusted offshore financial institutions in the world.

Of much interest is the fact that the tax rate for BVIincorporated companies is extremely low to the point of almost being non-existent. Tax residents are not charged corporate tax nor is there double taxation from being taxed in their home country. BVI companies only require a minimum of one director and one shareholder and it is fine to choose anyone regardless of whether they are local or foreign of the British Virgin Islands. Annual general meetings – and other meetings to discuss dividends or operations of the management – can be held virtually anywhere in the world. Records are kept strictly confidential and no one outside the company is authorised to search for such minutes, records or documents pertaining to the company formation. In rare cases, however, the courts can adjudge to apply for documents in criminal cases. These cases are limited and happen infrequently, though, and most BVI owners and investors are rest assured of anonymity of their BVI companies.

BVI companies can opt to have a company secretary or not. In the event that there are minutes to be taken and there is no appointed secretary, the agent which handles the affairs of the registered BVI company would normally be able to provide such services. Although there is no requirement to pay taxes by law for registered BVI companies, the management would have to apply for a local bank account for other purposes. Additionally, there would be no obligation for the company to have a local office or address as they can operate and manage the affairs of the business from another country. However, the management would need to ensure that all accounting and financials of the company are kept up to date. Preparation of the accounts is essential although there is no need to file them and the accounts would not be open to public.

When it comes to compulsory fees payable upon incorporation of the company, one of the few things that the management or agency would have to pay is the minimum annual tax or license fee. This normally relates to $350 charged on share capitals worth less than $50,000. Any share capital more than $50,000 will be charged $1,100 per year. Directors and shareholders should bear in mind that shares can be in any currency. Anything else would be an internal company measure that can be worked out as and when it comes up. Possibly another tax haven or offshore company that people might consider would be Hong Kong. However, the British Virgin Islands remain highly popular due to its ease of registration and other types of regulations.

The currency used on the British Virgin Islands is the US dollar so any agency fees or banking fees would be quoted in the same currency. Although it is very simple to incorporate a BVI company on the islands, the procedure is so different from that of other countries that most company directors prefer to go through an intermediary or a local agent. There are also various overseas consultancy and professional services which offer the same benefits to clients as those who are based directly on the islands themselves. The agents would be able to give thorough information on the formation of companies on the British Virgin Islands and also give an overview of how the system and regulations work over there. Additionally, professional accounting and financial services accountants would also be able to assist with incorporation and registration needs. It is not impossible for the whole process to only take a few days. It is also a condition that client – agent confidentiality and trust is an important factor to ensure that the whole process runs smoothly. All you have to do is contact the agent and all informative details will be at your fingertips.

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.