British Virgin Island is a beautiful place to visit, and Almost 40$% of the world offshore companies own BVI company registration. Apart from an enjoyable place, BVI provides a wide range of business benefits. To set up a BVI offshore company can be a great move in your business life. This article will tell you how you can set up a BVI offshore company and benefit from it.
What is a BVI Offshore Company?
A BVI company is a corporation of one or more entities situated in the British Virgin Islands and working under the BVI Business Companies Act 2004. Having the same features as a corporation, BVI calls different types of businesses and interacts financially with the non-residents of BVI business companies. There are several reasons why people prefer a BVI company; some avoid taxes, strict confidentiality, and flexible organizational structure.
The British Virgin Islands joined the offshore banking world in the 1980s. Today it is a popular destination for international companies, and many people refer to these companies BVIs .The BVI Business Companies act 2004 removed the discrimination between local and offshore companies in these islands and making a BVI Offshore company more accessible globally.
How to Set Up a BVI Offshore Company
Unlike other jurisdictions, establishing a BVI company is not easy and straightforward. To set up a BVI company, you need the help of professionals to ensure all regulations and terms. Only a licensed agent can perform the services of forming a BVI company. The BVI Business Companies Act 2004 allows the formation of five types of BVI offshore companies.
Most commonly, people set up a company limited by shares. You need several things, such as a registered agent and address within the island, to create such a company. Many professional organizations automatically provide you with a registered agent to establish a company for you.
The beginning tasks of company formation are looked after by the agent, for example, incorporation of the company and hiring of the first directors. It is necessary to appoint a director within six months of incorporation. Who can be the director of the BVI Company? An individual or corporate entity may be the director of a BVI offshore company. At the time of incorporation, the company shareholders’ detail will be provided to the formation agent.
Creating an offshore company in the BVI is a specialty, which establishes companies worldwide as full disclosure. Inquiry forms and numbers are available on the website to make a conversation with a consultant to get more details about the BVI offshore company. The only document required in the incorporation process is Memorandum and Articles of Association for public record. All other things, such as company shareholders, directors, and company beneficial owner’s name, kept private. The registered agent keeps all this record confidential and makes it available for inspection only for the shareholders of the company.
BVI Company Registration
The BVI company registration is an important step of incorporating, and it is the responsibility of your agent. According to the BVI Business Companies Act of 2004, the registrar of corporate affairs will maintain the incorporated company’s registry. The sole regulator of financial matters of the company is the BVI Financial Services Commission. He must authorize any individual who will conduct the financial business services within the BVI.
After company registration, the statute demands companies’ names to have a corporate suffix such as BVI Corporations or BVI Limited Corporations. All incorporations and post incorporations filings electronically by the agent to speed up the registration process. The company registration process took almost 3-5 days.
BVI Company Bank Account
After setting up a BVI company, you need to set up a BVI bank account. At the time of the offshore bank account, the account holder needs to be present physically. However, several BVI banks allow the company to open the bank account without the account owner. To open a bank account, you need a copy of articles of incorporation from BVI Company, an application identity, client information, and internal information of the actual beneficial owner of the company. Further paperwork involved a certified passport copy, a bank reference letter, and a copy of the second photo identification. The bank must ensure it is you making the request, not someone else.
Set up a BVI Offshore Company is the ideal choice for:
- Holding Assets
- Holding intellectual property rights
- IT company
- Register a Yacht
How to use BVI Offshore Company to your benefits
There are several uses of a BVI offshore company to get benefits. Many people choose an offshore company to avoid taxes; however, tax reduction depends on the owner’s jurisdiction.
- Tax reduction is a prominent feature of many BVI offshore companies. Besides, BVI is a better option due to its common law legal principles.
- One of the most popular uses is assets or property landing there because BVI permits the ultimate flexibility in property disposal.
- A BVI offshore company can act as a holding entity for another company.
- No taxation and minimize liability when trading with companies.
- BVI Company is an excellent choice for joint ventures and e-commerce.
- If you have a yacht registered within a BVI company can apply for British registration.
- Captive insurance BVI companies can be a valuable tool to lower risk and create tailored financial services for a company.
Other BVI Company Benefits
- No additional mandatory corporate governance requirements.
- Low maintenance cost.
- BVI offshore company holders can list their shares on the worldwide stock exchange.
- BVI offshore companies can merge with a foreign company in a different jurisdiction.
- The shares of a member can acquire with the member’s consent.
- No financial assistance restrictions.
- The BVI company can migrate from and to any other jurisdiction.
The above reasons show you why BVI is a popular destination to set up an offshore company.Establishing an offshore company offers many international business opportunities.Flexible structure and strict registration laws ensure the safety of your assets.