History of British Virgin Islands

The British Virgin Islands (BVI), which are located in the West Indies, were discovered by Christopher Columbus in 1493 and captured by the British in 1673. Today they are a British overseas territory and, although not part of the UK remain under his authority.

The British Virgin Islands as Position Offshore

Although the British Virgin Islands offer anonymity and 0% Company tax, they are strongly associated with avoidance and tax evasion. Their relatively poor international reputation can negatively impact their ability to operate in Europe.

There are two types of BVI offshore companies: British Virgin Islands Business Companies (IBC), the traditional "offshore company", and the British Virgin Islands company ordinary residents, which are regulated in a way closer to a European standard.

A BVI IBC is the most popular form of company offshore in the world and is equivalent to a European private limited company. IBC is governed by the International Business Companies Act, which provides that the Director of the company must be appointed within 30 days from the creation of the company. There are no nationality or residence requirements for shareholders or directors. There is no minimum capital, but there are prices to be paid on government formation. These fees vary depending on the company's capital with a minimum of $ 350 for a BVI company with a capital of $ 1,100 or less. An IBC can not carry out any activity in the British Virgin Islands, except for certain exempt services necessary for the establishment and administration (accountants and lawyers' fees? ", Etc.).

To be able to do business directly in the BVI, you need to opt for the ordinary resident company British Virgin Islands, which are allowed to trade in the BVI. A BVI company is resident in the BVI if the majority of directors are based in the BVI and, if so, must apply for a license to trade.

Summary British Virgin Islands

The BVI is a popular place in the open sea and is an excellent choice for international transactions outside Europe. Despite being a leading tax haven for over 30 years, new rules for control of offshore companies have been introduced in Europe, which focus specifically on this area and now it is highly inadvisable to use BVI company billed to or from European entities. The BVI is therefore currently repositioning itself as a destination tax planning for Asian customers.

Types of companies BVI

The creation of a BVI company usually requires two days and there is no minimum share capital. It costs about 1,100 Euros. The BVI offers the following types of companies:

  • IBC / Joint Stock Company (the most common type in the BVI)
  • Unlimited company is not authorized to issue shares: frequently used by not-for-profit
  • Limited liability company authorized to issue shares: more flexibility
  • Limited liability company authorized to issue shares: given the scale more "transparent" BVI
  • Unlimited company is not authorized to issue shares