International Business Company's (I'BC's') are companies incorporated in the British Virgin Islands ('BVI') under the International Business Companies Act, 1984, with the following criteria:
1. The Company conducts business outside BVI
2. The company doesn't conducts business with any BVI Resident
BVI BC's are a very popular and among offshore companies due to their flexibility, tax exemption status, easy to operate and the fact that they are widely accepted and understood by the international financial community.
In order to qualify as BVI Offshore Company you must meet the following requirements:
1. May not own real property in the BVI, other than the lease of an office
2. May not carry on banking or trust business (unless licensed under the Banks and Trust Companies Act, 1990) or insurance or re-insurance business (unless licensed in the BVI to carry on that business).
3. Otherwise, BVI BC's may engage in any activity that is not illegal under the laws of the BVI subject to any restrictions in their Memorandum of Association.
BVI is one of the most recognized offshore tax haven in the world. Since 1984, the BVI International Business Company (IBC) has reached the top of popularity among global offshore company formations, with more than 600,000 total incorporations to date and 250-300 new companies registered every day.
The British Virgin Islands are a small group of islands in the Caribbean Sea located 60 miles east of Puerto Rico. The BVI has excellent airline connections with Puerto Rico's capital of San Juan, which is a major hub for American Airlines. The BVI financial services industry enjoys the advantages of having responsibility for its internal self-government, while maintaining the political and economic stability associated with being a British Overseas Territory.
The BVI has an independent legal and judicial system based on English Common Law, with a right of final appeal to the Privy Council in London. Policies and legislation are developed in close consultation with the private sector. Offshore business can be carried out in a tax-free environment.
General Information:
The British Virgin Islands is located in the
Caribbean and consists 50 islands, situated some 1100 miles southeast of Miami and 40 miles east ast of Puerto Rico, with a total land area of some 60 square miles. The biggest island of the BVI is Tortola, where the country capital Road Town is located. The population of the British Virgin Islands is approximately 22 thousand. The BVI is also a popular tourism location as 2.5 million visitors visit the British and US Virgin islands every year.
BVI is a British Crown territory, therefore politically stable, democratic and substantially more prosperous than most of the other Caribbean nations. The legal and judicial system of the BVI is based on the English Common Law, with domestic legislation passed by the BVI Legislative Council. Great Britain is responsible for the islandsī defence, foreign affairs, internal security, and the administration of justice.
BVI has a classic taxation system suitable for an offshore jurisdiction and tax haven.
BVI Offshore Company is fully exempt from Corporate & Personal tax as well as capital gain tax. BVI's budget comes mostly from payroll tax (10% for small enterprises and 14% for all the rest) as well as from import and stamp duties, license fees and company registration fees. Offshore financial services sector is contributes substantially to the BVI's economy.
The official currency of the BVI is US dollar.
Tax Exemption (Zero Tax):
A BVI International Business Company is exempt from the BVI income tax on revenues, profits, dividends, interest, rents, royalties, compensations and other amounts paid by a company, and all capital gains realized with respect to any shares, debt obligations or other securities of the company.
No estate, inheritance, succession or gift tax is payable with respect to any shares, debt obligations or other securities of a BVI BC. All transactions and instruments relating to transfers of any type of property of assets, shares, debt obligations or securities to or by a BVI BC are exempt from the stamp duty, with a sole exception for land-ownership transactions in the British Virgin Islands, in which case stamp duty remains payable.
In essence, should the BVI IBC meets the criteria of not conducting any business in the BVI and not doing business with any BVI resident it is a completely tax free company in the BVI.
Privacy & Anonymity of shareholders and directors:
Privacy & Confidentiality of shareholders and directors are one of the key features of the BVI Offshore Company. Details of the company beneficial owners, directors and shareholders are NOT part of public record.
Register of Shareholders, Directors and Minutes and Resolutions by the Company are kept only at the offices of the Registered Agent in complete confidentiality.
The only documents held on public record are the Memorandum and Articles of Association which doesn't list the shareholders or directors.
The BVI allows offshore companies engage a Nominee Director and / or Nominee Shareholders to upgrade the level of anonymity & privacy.
Capital:
There is no minimum or maximum capital for a BVI International Business Company. You can incorporate a BVI IBC with any capital amount you decide on.
There is no requirement to pay the share capital with the incorporation or any other official time line (such as opening a bank account).
Shareholders, Directors and Officers:
Only one director and shareholder are required and can be the same person.
Nominee shareholders and directors are permitted.
No statutory requirement for officers; however, if officers are required they can also be directors and shareholders.
Shareholders and directors may be of any nationality and reside in any country.
Directors and shareholders may be either a natural person or a corporate entity.
BVI IBC's are not required to hold annual shareholder meetings or board meetings.
When a meeting of shareholders and directors is held, a proxy may represent a shareholder or director and speak or vote on his behalf.
Financial Reporting:
BVI IBC is not required to file or submit financial reports, tax returns, corporate records or accounting data. The company is required to keep financial records, which reflect the financial position of a company.
The IBC can manage and maintain its financials and accounting records based on the shareholders decision, in the BVI or outside BVI.
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