British Virgin Island (BVI)

Overview

The British Virgin Islands consist of 60 separate islands, situated to the North West of the American Virgin Islands, 60 miles from Puerto Rico. The population is approximately 17 000 and the official language is English. It is a colony of Great Britain, with an autonomous local government and its own constitution. Legislation is based on English Law. The Government in Tortola has succeeded in offering the international financial community an investment vehicle, which has proven competitive with its offshore counterparts in other jurisdictions and applies a zero rate of corporation tax.

 

Corporate Requirements

  • Company Name: must be in English, but Chinese name allowable, but has to be same meaning with English and be notarized. There will be charges if add Chinese Name into the Memorandum and Articles.

  • The company name ending normally ends with Limited, Corporation, Incorporated or short-form Ltd., Inc., AVOID using the words such as Assurance, Bank, Society, Trust, Insurance, Royal and etc.

  • 2004 Commercial Company Act has canceled authorized share capital, the issued shares are capped at 50,000 shares, with or without par value. There will be an extra USD750 if issued more than 50,000 shares.

  • Has to appoint at least one director:

    • Can be individual or corporate.

    • Can appoint shareholder or somebody else.

    • Director has to be at least 18 years old.

  • At least one shareholder.

  • No requirement for the appointment of a company secretary.

  • The company director has to file into the registry office.

 

Company Characteristics

  • Politics, economics, and trading environment friendly, and internationally well-known.

  • Well-established financial law, ease for setting up several financial institutions and funds.

  • No requirement for an annual general meeting, and no need for submission of annual financial reports and annual audit reports, but it is required to file the director and shareholder information to the registry office annually.

  • The annual fee payment date is depending on the company registration date, incorporation date from 1st Jan till 30th June, required to make the annual fee payment before 30th May; while incorporation date falls on 1st July till 31st Dec, is required to pay before 30th Nov to avoid late penalty charges.

  • A bad reputation worldwide as it is too easy for incorporation therefore highly used for money laundering.

  • Widely recognized as paper company, making it harder to conduct business with other companies as it not recognizes by some countries. Furthermore, it might require more documents when conducting international investment and holding.

  • Hardly to get approval for a bank account due to the bad reputation.