Form Your Company in the British Virgin Islands (BVI) Online

Psoted on: June 25, 2021 at 8:20 am, in

Go Global with Clevver Hand

Overview: 

  • The BVI is one of the most prestigious tax havens in the world; 
  • There are practically no substantial tax burdens on the companies incorporated in the jurisdiction;
  • There are no reporting requirements to government agencies and mandatory auditing for BVI companies; 
  • There are no exchange controls in the British Virgin Islands;  
  • Clevver offers support for the remote company registration in the BVI. All documentation on incorporation is accessible digitally. 

The British Virgin Islands are one of the most popular places to start an offshore business. The islands are a British overseas territory in the Caribbean. This is an important advantage for foreign investors because English is the main (official) language here. The two most important areas of business are tourism and financial services. The latter is primarily supported by a large number of companies registered in the BVI. 

For many years, among the many tax havens, entrepreneurs around the world choose the British Virgin Islands (BVI) to strengthen and develop their international activities. This territory stipulates low state fees in exchange for practically an absence of taxation and preparation of the financial statements. 

Nonexistence of income tax and loyal legislation — that is, in the first place, what attracts businessmen to the British Virgin Islands. BVI holds leading positions and remains one of the most profitable company registration destinations globally, despite the fierce competition. The process of the company set up in the British Virgin Islands with Clevver hand is simple and completely remote. Learn details here

Basic Characteristics of Business Companies (BCs) of the BVI 

  • BVI companies currently have a single status — Business Companies (BCs). As amended, the BVI Business Companies Act, 2004, governs the incorporation and operation of such companies. 
  • Companies may conduct any lawful business activity. Some activities require a special license (e.g., banking and fiduciary services, insurance, investment funds, activities as registration agents, etc.). 
  • BVI companies may open accounts with local banks, rent an office, use professional services, keep accounts and hold meetings of shareholders and directors in the islands. However, trading activities or real estate purchasing directly in the BVI territory by non-residents companies may require appropriate licenses and permits.
  • The company name can be anything, except for the names of previously registered firms or very similar to them. It must contain an indication of its legal form (most often it is “Ltd.”). 
  • Companies must have a registered office and a registration agent in the BVI. 
  • Shareholders of a company may be individuals or legal entities of any residency. 
  • There is no minimum amount of authorized/paid-up share capital.  
  • The company must have at least one director (natural person or legal entity of any residency). Meetings of the directors can be held at any location and any frequency. 
  • Companies must have a corporate seal. An impression of the seal must be kept in the office of the registration agent. 

Taxation and Payments 

Commercial BVI companies are exempt from paying taxes, regardless of the source of income. Only an annual fee (duty) is mandatory — US$450 where the authorized number of shares is less than or equal to 50,000 and US$1,200 where the authorized number of shares is more than 50,000. Failure to pay this fee by the due date results in penalties on the amount owed, and then deletion of the company from the register. However, if the fee and penalties are paid, the company may be restored to the register. 

In BVI, there is NO: 

  • Capital gains tax;
  • Gift tax; 
  • Sales tax or value-added tax; 
  • Profit tax; 
  • Inheritance tax or estate duty; 
  • Corporation tax. 

There are no reporting requirements to government agencies and mandatory auditing for BVI companies. However, BVIBCs are required by law to keep records of financial transactions and all related accounting documents at the registered address/registration agent of the organization. 

Incorporation in the BVI  

Clevver experts will help register a company in the British Virgin Islands remotely. We provide the necessary organizational support in the process of opening your business.

APPLY TO RECEIVE:  

  • The help of the highly-qualified specialists;
  • Online support from Clevver;  
  • An essential set of legal papers on the company incorporation in a digital format;  
  • Great add-ons (additional shareholder, company secretary, registered office address);  
  • Consistent customer support and individual approach to each client. 

Conclusion 

A company in the BVI is not subject to income tax, has no requirements for the minimum authorized capital, its reports are filed only at the request of the Department of Financial Services. All this allows the BVI to occupy a leading place in the list of most popular jurisdictions for the registration of offshore companies. 

Form your BVIBC Ltd. remotely, quickly, and without unnecessary hassle! The Clevver team will help you register a BC in the BVI, click here for more information! 

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.


British Virgin Islands – Your Choice for Asset Protection

Psoted on: October 12, 2020 at 2:49 pm, in

Nestled in the heart of the Caribbean, the British Virgin Islands attracts countless visitors with its sandy white beaches and glorious weather, but unlike other holiday destinations, it offers more than beauty to those who want to protect their money and assets. Comprised of 16 habited and more than 20 uninhabited islands, BVI is a self-governing overseas territory of the United Kingdom. It boasts a steady parliamentary democracy, and its relationship with the UK ensures protection and stability, important to anyone considering benefiting from the territory’s ample financial advantages.

With a population of around 35,000, the island conveniently uses the USD as currency, and in 1994 it inscribed confidentiality for registered business ownership into law, hence many businesses take full advantage of their offshore registration program.

There are over 500,000 companies currently registered as offshore entities in BVI, making the British Virgin Islands one of the most popular tax havens in the world.

Tax facts

Annual tax rate0% on a firm’s capital
The local equivalent to limited liability companyBVI Business Company (BC)
Company SuffixLtd.; Corp.; Inc.; S.A. (freedom of choice)
Starting costs€1995.- | no paid-up capital required
Income tax on foreign establishments (operating outside the country)0%
Corporate tax on foreign establishments (operating outside the country)0%
Capital gains tax on foreign establishments (operating outside the country)0%
Founders & Shareholders need to be residentsNo
Identity submission to public recordsNo
Legal SystemCommon Law

 The BVI platform for your business

What else is there that makes BVI a great place to register your business? Here’s an outline of how a BVI-registered organization can save you money.

Taxation

The BVI has no capital gains tax, no gift tax, no sales tax or value-added tax, no corporation tax, and no inheritance tax. There is income tax, but that is currently also set at zero and has been for many years with no sign of change. In fact, much of the country’s income comes from new business registration fees, so it is not in the interest of the government to change the situation.

Salaries are taxed, however, through a payroll tax, 8% for the employee and 12% or 14% for the employer for any salaries above $12,000.

The BVI Business Company

With very few restrictions, most people can register a BVI Business Company (BC) in the country. It is available regardless of your location in the world, and it can be formed as a continuation of another company at request, creating a wholly owned yet confidential, tax-efficient subsidiary.  

Businesses can be incorporated under a variety of suffixes to suit, including:

In all cases, they need just one director, who does not have to reside, or even visit BVI in person.

Judicial System

The system of judiciary is based on that in the UK, in addition, BVI is a member of the Eastern Caribbean Supreme Court.

A great place to hide your yacht, plane, or any asset

The BVI BC can be incorporated by anyone, anywhere in the world. The legislation is simple, with each company requiring a single director, who does not need to reside in the country, and annual reporting is not required under law, making the maintenance very simple too. With an offshore entity so easy to create, startups can compete with big players.

With no corporation tax, there are only two costs to concern yourself with: the first is the $450 a year official fee to maintain the status (for businesses with less than 50,000 shares), and the other is a payroll tax. The payroll tax applies to all employee wages, and it is paid at the rate of 8% by the employee, and either 12% or 14% by the business, depending on the annual income.

While incorporating is easy in BVI, there is a downside. Banking opportunities are limited, with just three BVI-based banks, all of which require a face-to-face meeting to open the account. This could be an issue, yet several banks in Singapore cover BVI and offer a more digital-friendly solution that works for owners in other countries.

Summary

With a simple setup, low maintenance requirements, high levels of confidentiality, minimal taxation, and low annual cost, BVI tax haven is the perfect offshore option to keep your assets out of the reach of others. From yachts, planes, or anything of value, ownership through a BVI BC offers high levels of protection while minimizing costs.

If you want to find out more about the BVI and how remote incorporation can help your business, contact the team at Clevver Company.

Clevver now supports the incorporation in the BVI, check it out!

DISCLOSURE NOTICE: Any legal or tax advice in this communication (including any attachments) is for information purposes only and is not intended to be used, and cannot be used against Clevver or its Sender. The sender is neither an Accountant nor a Lawyer and cannot be made liable. Please, contact your tax accountant for individual consultation. Clevver does not provide any legal advice itself. Clevver works together with a network of lawyers and tax advisors that provide all necessary individual legal advice.