Business Setup in British Virgin Islands (BVI) Offshore
Offshore companies in the UAE are legitimate business entities established to conduct operations beyond their designated jurisdiction. Typically utilized for international business and financial endeavors like trade, investments, and e-commerce, these companies leverage the UAE’s favorable regulatory environment.
The British Virgin Islands stands out as a premier business hub with a strong financial services sector, offering diverse banking and investment avenues. British Virgin Islands (or BVI) company formation provides businesses with a streamlined telecommunications infrastructure, enabling seamless interactions with global customers and partners.
What makes the British Virgin Islands a great place to open a company?
As per the BVI Business Companies Act, setting up a company in BVI is simple.
1) The company may have minimal manpower i.e. 1 director and 1 shareholder.
2) Companies that are part of BVI can conduct business from anywhere in the world.
3) There are no corporate or income taxes for setting up a business in BVI
4) There are no capital gains taxes.
5) The names of company owners or stakeholders are not disclosed by BVI publicly.
Characteristics Of British Virgin Islands Offshore Company Formation
Type of Law
Britsh
Governed By
BVI Business Companies Act (2004)
Requirement for Registered Office
Yes
Corporate Taxation
No
Minimum Paid Up Capital
$1 (U.S.)
Minimum Number of Directors
1
Minimum Number of Share Holders
1
Requirement to Prepare Accounts
Yes
Requirement to File Annual Return
No
Bearer shares allowed
No
British Virgin Islands Offshore Company Setup Advantages
Privacy
While setting up a business in BVI, you are protected by a strong confidentiality. This helps in keeping the information of stakeholders private.
Asset Protection
Asset protection is one of the top priorities for shareholders. BVI offshore company formation offers robust and strong Asset Protection.
Smooth Business
The British Virgin Islands (BVI) boasts a regulatory environment conducive to business, featuring a simplified company registration procedure. Moreover, the absence of currency exchange controls in the BVI empowers businesses to operate without restrictions.
Tax Exemptions
A key motivation for forming an offshore company in the BVI is the advantageous tax landscape. Establishing a BVI company entails exemptions from corporate income tax, capital gains tax, and inheritance tax. Such favorable tax treatment can result in substantial tax benefits for both businesses and individuals.
Can a foreigner start a business in BVI?
1) There are no taxes as part of the BVI business setup. This helps foreigners in setting up their businesses quickly without any specific documentation. The names of owners and shareholders are kept confidential.
2) BVI’s government offers several offers to foreigners for different business types.
3) There is no requirement for a resident BVI director which means that a foreign company can completely own the company from outside of the UAE
4) A company should have at least 1 BVI director, 1 secretary, and 1 shareholder of any nationality.
British Virgin Islands Company Registration Is Ideal For
Offshore & Saving and Investment
Trade & Distribution
Forex & Stock Trading
E-commerce
Professional Service Company
International Trading
Holding a Bank Account
What is a Tax Haven?
A tax haven is a country, state, or city where there is limited or no tax liability on the individuals or investors. Countries like Dominica, the Bahamas, and the Republic of Panama all are tax havens with special characteristics.
BVI Tax Haven
- BVI is a tax haven considering there are no taxes on offshore accounts and no establishment of tax treaties.
- BVI has developed a “territorial tax system” that benefits the companies. The BVI does not impose taxes on capital gains, gifts, profit, inheritance, corporation tax, etc.
- The employees’ salaries are taxed at 10% and at 14% for the employers considering the drawn salary exceeds $150,000 or the annual turnover is $300,000
- The simple tax regime has lured many investors to set up companies in BVI. The investors set up foreign-invested enterprises in the home country to capitalize on tax benefits. With low taxes, it is easy to say that BVI is a tax haven.
- Though the low tax regime is favorable, there are some limitations in BVI. Anti-money laundering laws have helped BVI build a good reputation when compared with the time when there were no laws in place. It is recommended that you set up offshore companies in reputable jurisdictions like Singapore, Hong Kong, and Dubai.
HOW TO SET UP A COMPANY IN THE BRITISH VIRGIN ISLANDS
Steps in Setting Up an Offshore Company in the British Virgin Islands
Step 1 – Define your company’s structure
When setting up a BVI company, start by engaging with our team of professionals to define your company’s structure and appropriate business name. Ensure you gather all required documentation, including copies of passports for the beneficial owner and director.
Step 2 – Submit the documents
After gathering all necessary documentation, the next stage in BVI company formation involves submitting these materials to YABS Consultants. Our team will then proceed to prepare the essential forms for your signature.
Step 3 – Finalize your registration
Subsequently, our team will proceed to submit your company registration application to the BVI Company Registry. Please don’t hesitate to contact us for further information or assistance during this process.
Step 4 – Open a corporate bank account
The last step in setting up your business is to open a corporate bank account to settle the transactions.
Documents Required to Register BVI Offshore Company**
Why Choose an Experienced Consultant for BVI Offshore Company Formation?
An experienced consultant will help you with the right advice while setting up a business in BVI. You will not have to run from pillar to post to review and fill up unnecessary details. The consultant will help as an experienced individual to solve all your queries.
We at YABS have extensive experience in setting up a business in BVI. We have excellent people on our team who will help and guide you through the proper process of owning a business. We also have a financial team that takes care of all your finances and helps in making your business grow.
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