The British Virgin Islands (international enterprise company (International Business Company, IBC)

The British Virgin Islands (international enterprise company (International Business Company, IBC)

The British Virgin Islands has one of the most successful legislative systems that are actively supporting the development of offshore business.

The Law On Commercial Companies of BVI  come into force on 1 January 2005, having replaced the Companies Law known as Cap.285 and Law On International Business Companies of 1984. In accordance with this law, an offshore company is subject to the minimum requirements, while the company gets certain advantages: confidentiality and tax exemption.

Company incorporated in the jurisdiction of BVI receives a number of competitive advantages:

• Security of assets - protection of assets from third parties, option to transfer assets to another country or to another entity including trusts, founds, associations or partnerships;
• Exemption from local taxes and government fees (except for the registration fee and an annual payment of license/franchise);
• Both bearer shares and registered shares are possible; Registered shares may be stored in the company, bearer shares shall be with a custodian, who has the relevant license (in accordance with the new rules);
• No requirement to submission of financial and other reports to the state authorities of BVI, but a company has to maintain and store documents that show the company's financial conditions. These documents have to be submitted upon request of the Finance Services Department. For the failure to perform he said obligation, the company is fined with 10,000 US Dollars.
• Only one director is required, individual or legal entity.
• No requirements to the minimum charter capital.
• Directors may retain assets by transferring shares of trustees, other companies or other entities;
• Flexible Requirements to the names of offshore companies. Company name can be in any language and must include the words such as Limited, Incorporated, Corporation, Sociedad Anonima, Société Anonyme, equivalents or abbreviations;
• Law government fees and charges.

An International Business Company (IBC) registered in accordance with the Law on International Commercial Companies (International Business Companies Ordinance).

To register a company with favourable tax regime it is necessary to:

• All of the company's shares should be directly or indirectly owned exclusively by foreigners. In some countries, issue of bearer shares is possible, in others - to ensure confidentiality nominee shareholders are used.
• Sources of income should be abroad.

General Table of Requirements to the Companies in BVI

Please note that this information may be changed from time to time and shall be re-checked by experts of the relevant jurisdiction. To obtain updated information and information on the cost of registration, please contact our representatives.