The British Virgin Islands or BVI is situated in the Atlantic Ocean. The country has a population of less than 30,000 but it is one of the leading offshore jurisdictions in the world with more than half a million offshore companies incorporated since 1984.
The BVI Companies Act of 2004 is a statute of the British Virgin Islands and it relates to the formation of companies in the country, both local and offshore. It is the replacement of the extremely popular international Business Companies Act. The act is made up of specific features which are specially created to make the islands an attractive offshore financial centre.
- No restrictions in the declaration of dividends
- Restricted requirements for corporate benefits
- An increase in the types of companies which can be formed
- Statutory minority shareholder protection
- No requirements for companies to have a stated corporate object
- Modernization of the registration of security interests
Setup Requirements for British Virgin Island Companies
In order to set up a British Virgin Island company, there should be a minimum of 1 shareholder and 1 resident director. The shareholder, director and corporate secretary can be the same individual or corporate entity. There is no need to appoint an operating officer. There are no restrictions on the nationality or residency of the directors and shareholders of the company and it is also not mandatory to appoint a secretary.
Lenient Rules for Share Capital
When it comes to share capitals, the rules are very lenient. There is no requirement for capital maximum or minimum. There is no need to disclose the share capital of the company and numerous classes of shares can be issued by the company.
Why BVI Offshore Companies are appealing
Many companies and investors are interested in creating BVI offshore companies because of the many advantages they have over local companies. There is no minimum capital amount required; income is exempted from local tax; there is no annual reporting or auditing; and there are no capital gains or withholding tax. British virgin island company register is not that difficult to do especially if you have the right kind of assistance.
Today more than 1 million companies have been incorporated and BVI is now the world’s leading provider of offshore entities. Secrecy is one of the most appealing things about BVI. Event the country’s government does not know the identity of the people who own the companies in the islands. The only information supplied to the registry is name of the company’s agent. The agent is the local firm which arranges incorporations and collects the annual fees.