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Oxford maintains a list of ready-made BVI Offshore Companies which can be provided to you upon request and can assist you to register your BVI Company and open a bank account right away. Nominee services can also be provided.
BVI IBC or BVI International Business Company is a discrete business entity that is exempted from tax regulations, ideal for many situations that deal with international business activities, allows for a more lenient organizational structure, has less requirements as far as record keeping as well as reporting is concerned, and also offers much more confidentiality. BVI IBC or BVI International Business Company is the same as what is typically referred to as an “offshore company”.
Ever since the introduction of the BVI IBC, or British Virgin Islands International Business Companies Ordinance in the year of 1984, the BVI IBC has become an ideal offshore investing opportunity. Currently there are more than 550,000 incorporations as well as over 5,000 new companies that are registering each month. This makes the BVI one of the most prevalent offshore jurisdictions available.
Here are some of the advantages of BVI companies:
Each company that is incorporated within the BVI or is managed within the BVI is treated in such as a resident. Therefore these companies are taxed as per the British Virgin Islands Income Tax Act, but the BVI Business Companies Act 2004 allows for a full exemption from these requirements for: All BVI business companies, dividend, interest, royalties, compensation, capital gains as well as debt obligations.
The Business Companies Act states that no estate, inheritance, gift tax rate, levy, duty or other charge is able to be paid with any shares, debt obligations or assets of a business company. These companies are also exempt from stamp duty unless in the state where the instrument may pertain to the transfer of an interest in land in the BVI or the transfer of securities of a land possessing business.
At the start of January 1st 2005, the BVI have taken on a zero-rated income tax command that pertains to all commercial entities. These commercial entities will be required to pay a starting registration fee as well as a yearly license fee that will be paid to the Financial Services Commission. The registration fee and the yearly fee is $350 or $1,100 if the company in question has authorized the issuance of anything over 50,000 shares.
Restricted purpose companies will be required to pay an initial registration fee of $5,000.
There are no branch profit taxes, capital gains taxes or sales taxes that are required to be paid. Stamped duty is enforced whenever there is the transfer of real estate as well as the transfer of shares within a BVI business that owns real estate within the BVI. This rate of stamp duty is 4% for belongers or 12% for non belongers. Any other stamp duty transfers will range from 0.2% to 5%.
Currently there are no withholding taxes on dividends, royalties or interest when pertaining to BVI companies. The BVI has ratified the EU Savings Directive since the first of July 2005. A withholding tax is enforced to interest payments to natural people who reside within the EU. This withholding tax is not required as the investor/depositor is able to avoid the tax by giving information pertaining to their account to authorities of their home country.
The primary legal tender within the BVI is USD. There aren’t any exchange control restrictions between transactions of USD funds in or out of the BVI or on their conversion to different currency
For companies with registered shares only:
Names that are the same or similar to that of a company currently residing within the BVI may not be registered. Registering a name that is reserved within the BVI’s name-reservation system is also disallowed. Unless you have attained permission to do so, the usage of certain words is not allowed. Words such as: “Bank”, “Building Society”, “Chamber of Commerce”, “Chartered”, “Cooperative”, “Imperial”, “Municipal”, “Royal”, “Trust” and any other word that has a similar meaning or suggests the same meaning is not permitted. Offensive names and any other name may be disallowed if the Registrar deems it unsuitable.
Although a company secretary isn’t a requirement, they are typically chosen in order to assist with the signing process.
It is a requirement that an imprint of a Company Seal is kept at the Registered Office and if this requirement is not met there is the possibility of a $10,000 fine. In the case that the Minute Books are not held at the Registered Office, it is required that the address at which these books are kept is provided.
The standard share capital is $50,000 as all of the shares have a par value; this is the maximum allowed share capital for the least duty owed upon incorporation and also annually subsequently. This share capital can be expressed in whichever currency. The minimum issued share capital is a single share of no nominal value or one share of nominal value.
BVI companies have the ability to issue shares in the form of a bearer. These shares are not permitted to be transferred to the actual owner, but they are able to be kept in the possession of a licensed custodian within or outside the BVI. These shares must be kept with a written indication that states the identity as well as address of the actual share owners. Government fees for these types of shares will be higher than that of traditional types. Oxford can provide custodian services.
There are no requirements pertaining to filing accounts with authorities, but it is a requirement that holders keep proper financial records that state the financial information of their company.
Privacy is a big perk of BVI companies and it is a vital reason of obtaining an offshore company within the British Virgin Islands. The BVI IBCO has many requirements in place that are set out to protect your privacy and confidentiality.Some of the primary features of BVI companies when pertaining to privacy are:
For more information about BVI companies & BVI company formation please download our FACT SHEET No.23 BRITISH VIRGIN ISLAND (BVI) COMPANIES