British Virgin Islands (BVIs) are group of small islands in the Caribbean Sea that are administered by UK as a British overseas territory. Like several other British overseas territories, BVI is also known for providing favorable business opportunities to overseas companies. The importance of offshore business in the semi-autonomous country is evident form the report of KPMG in 2000 that around 45% of all the offshore companies in world are incorporated in BVI. The presence of such large numbers of offshore companies is a proof that BVI is adopting one of the world’s best policies for offshore companies. Despite the recent leaks regarding offshore companies, the business activities in BVI haven’t reduced and companies are continuously selecting BVI as their preferred destination for offshore business.
Following points will provide few important reasons due to which individuals and companies are using BVI for acquiring maximum business benefits.
- English is the official and also widely spoken language in BVIs. All the documentation is done in English language which makes the process extremely simple and easy to understand
- BVI offshore is completely free from several restrictions including that there is no requirement for residency, company’s secretary, company’s meeting location. Only a single director and a single shareholder are required
- As compared to several other British overseas territories, the cost of setting up and maintaining a company in BVI is very low. Registration cost and annual fee are around $1400 and $450 respectively
- BVI is a tax haven in true sense. The location is free from wealth tax, corporation tax, income tax, corporate gains tax and other taxes. BVI is most effectively used as an intermediary holding company to save maximum amount of taxes
- Not only that the cost of formation of BVIs Company is low, but the process is also quite simple and quick. Usually it takes just a day for incorporation of a company
- BVI has adopted anti money-laundering laws in order to become a recognized offshore location worldwide. There is no legal problem after formation of offshore company in BVIs
- The assets of company remain private and secure from third parties as the identity of owners, directors and shareholders are not made public. But according to their compliance of international law, information can be shared with authorities after permission from BVI Court in order to eradicate chances of money laundering and other related crimes