DOING BUSINESS IN BVI IN 2020
For over a decade, Healy Consultants Group PLC has been efficiently and effectively assisting our Clients with i) BVI company registration ii) business banking solutions and iii) accounting and tax compliance services.
Summary table of BVI company registration
|Summary||International business company||Holding company||Fund||Limited partnership||Trust|
|Also known as||BVI business company||Parent company||Incubator hedge fund||Partnership||Discretionary trust|
|Best use of company?||All products and services||Holding and managing assets||Asset management||Professional services||Tax planning|
|How soon can you invoice local Clients/sign sales contracts?||2 weeks||2 weeks||4 months||Cannot trade locally||Cannot trade|
|How soon can you invoice international Clients/sign sales contracts?||2 weeks||2 weeks||4 months||2 weeks||Cannot trade|
|How soon can you hire staff?||2 weeks||2 weeks||2 weeks||2 weeks||Cannot hire|
|How soon can you sign a lease agreement?||1 week||1 week||1 week||1 week||1 week|
|How long to supply corporate bank account numbers?||6 weeks||6 weeks||6 months||6 weeks||6 weeks|
|How long to supply company registration/tax numbers?||2 weeks||2 weeks||2 weeks||2 weeks||2 weeks|
|Corporate tax rate on annual net profits?||0%||0%||0%||None||Cannot trade|
|Economic substance required?||Depending on business activity||Depending on business activity||Depending on business activity||Depending on business activity||Depending on business activity|
|Limited liability entity?||Yes||Yes||Yes||Yes||No|
|Government grants available?||Yes||Yes||Yes||Yes||No|
|Government approval required for foreign owners?||No||No||No||No||No|
|Resident director/partner/manager/legal representative required?||No||No||Yes||No||No|
|Local registered agent required?||Yes||Yes||Yes||Yes||Yes|
|Minimum paid up share capital?||US$1||US$1||US$20,000||US$1||US$1|
|Can bid for Government contracts?||Yes||Yes||Yes||Yes||No|
|Corporate bank account location?||First Bank||First Caribbean International Bank||VP Bank||Banco Popular de Puerto Rico||Bank of Asia|
|Can secure trade finance?||Yes||Yes||Yes||Yes||No|
|Average total business set up engagement costs?||US$7,950||US$8,050||US$26,800||Request a proposal||Request a proposal|
|Average total engagement period?||2 months||2 months||6 months||2 months||2 months|
BVI company registration summary
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Benefits and problems
Benefits of BVI company registration
- BVI company registration is cost-effective and straight forward. There are no minimum capital requirements and the process can be completed in one week;
- BVI has one of the most flexible offshore corporate structures available to international business people because:
- BVI government has implemented a 0% tax rate on corporate taxes for offshore entities;
- There are no statutory requirements for a BVI offshore entity to state its company’s objectives or its legal structure;
- There are no mandatory requirements for filing of company’s audits, taxes or financial information.
- Only one director and one shareholder is required for registering a BVI company. Corporate shareholders are permitted, and shareholders and directors can be of any nationality;
- BVI was recently added to the OECD white list after complying with various OECD guidelines, and signing 16 tax information exchange agreements (TIEAs). The BVIs therefore benefit from a strong global reputation;
- A company in the BVIs is an excellent way for entrepreneurs to legitimately book tax-exempt international profits;
- There are minimal maintenance requirements following registration of a BVI company. These entities are not required to submit annual financial statements or tax returns to BVI authorities;
- Healy Consultants can open corporate bank accounts around the world to support BVI business registration. Healy Consultants works with world class banks such as HSBC, Standard Chartered, and Citibank;
Problems with BVI company registration
- A BVI Business Company is not permitted to own property or trade in the BVI;
- Certain activities to be undertaken by a BVI company require a license (e.g. banking, insurance, trust management, or investment advice services). For more information on BVI licensed business activity regulations, visit the British Virgin Islands Financial Services Commission;
- BVI’s economy is largely dependent on tourism and financial sector. As a result, any entrepreneur willing to invest in an avenue other than these is likely to face numerous hurdles in the BVI market, such as i) lack of quality workforce for their required business as well as ii) an inadequate consumers base for their products, resulting in a poor market penetration.
- Effective 1 January 2020, BVI requires new and existing companies with relevant activities (trading companies, holding companies, fund management companies, financing and leasing companies, IP holding companies, shipping companies and banking and insurance companies) to state whether they are tax resident in the BVI. If the company decides to be tax resident, such business required to have i) active directors / or ii) staff and physical office in BVI, and iii) submit an annual financial report to the BVI Government re local turnover, profits and expenses incurred within the BVI. If not tax resident, the company will need to confirm jurisdiction of tax residency and provide supporting documents including i) tax registration certificate and ii) tax return confirmation;
- Effective 1 January 2019, locally-incorporated BVI entities, foreign entities registered in BVI and limited partnerships engaging in i) holding company activities ii) banking business iii) distribution and service centre business iv) finance and leasing v) fund management vi) headquarters business vii) insurance viii) intellectual property holding and ix) shipping are required to employ local staff and lease a physical office.
Best uses for a BVI company
- The BVIs are a great jurisdiction to establish an offshore entity to book global profits while minimizing tax. While a BVI BC does not have to pay corporate tax on its global profits, our Client’s income through a BVI BC may be subject to personal income tax in the country of residence. Healy Consultants can advise our Clients regarding their tax compliance responsibilities.
- Our Clients interested in establishing a financial services company choose BVI thanks to i) transparent laws and regulations imposed by the BVI Financial Services Commission ii) easy company setup procedures iii) transparent tax laws iv) good reputation amongst popular offshore jurisdictions and v) good infrastructure available for Fund Managers.
- Time to incorporate: One week
- Cost to set up: US$7,950
- Minimum capital: US$0
- Physical office required: No
- Shareholders: 1
- Directors: 1
- Company secretary: No
- Resident director: No
- Corporate tax rate: 0%
- Corporate tax base: Territorial
- Shelf companies: Unavailable
- Main company type: Business company
Frequently asked questions
How do I setup a financial services company in the BVIs?In order to provide financial services through a BVI Business Company, our Clients will need to get the relevant license from the BVI Financial Services Commission. Healy Consultants will guide our Clients about all the requirements for this license and assist throughout the application process.
Will I have to travel to register an offshore company in the BVIs?No. Healy Consultants does not require our Clients to travel to register a BVI offshore company.
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