Company Incorporation and Management
The BVI Business Companies (BVIBC) Act, 2004 (“The Act”) came into force on January 1, 2005 as a replacement for the IBC Act which was enacted in 1984. The Act which is regularly amended and modernized governs the incorporation and management of companies in the British Virgin Islands.
BVIBC’s are renowned for providing a cost-effective corporate vehicle which isflexible enough to handle from quite simpleto highly intricate and complex corporate structures and transactions while at the same time offering safety and security to investors.
The first step in the company incorporation process is the completion of an application form and submission of know your customer (KYC) due diligence information. On receipt ofan application our professional and experienced staffswiftly check the documents and performs the due diligence review that is a mandatory requirement in order to ensure compliance with local and international standards on the Proceeds of Criminal Conduct and Anti-Money Laundering / Combatting the Financing of Terrorism (AML/CTF).
Once an application is approved, after the requisite fees have been paid our staff proceeds to incorporate the company as per the specifications on the application form. Thereafter they are available to provide excellent customer service support and facilitate any requests for post company incorporation services.
Advantages of BVI Business Companies
There are several competitive advantages realized by companies which incorporate in the BVI. Some of the major advantages are:
- Exemption from all local taxes and stamp duty.
- Asset security- the ability to transfer domicile; protect assets from expropriation or confiscation orders from foreign Governments; transfer assets to another company, trust, foundation, association or partnership; merge or consolidate with any other BVI or foreign company in accommodating jurisdictions.
- Confidentiality and anonymity. There are requirements to file Ultimate Beneficial Ownership and Directorship information however access to the information filed is not open to the public and there are strict protocols governing its release.
- The ability to re-issue and re-acquire your own shares.
- The ability to issue shares for consideration other than cash, denominated in any currency and with or without par value.
- A BVIBC can have one shareholder and one director.
- Shareholders and Directors can be individuals or corporate entities.
- The process of continuation or re-domiciliation into or out of the BVI is simple.
- Distribution of benefits to members can be in the form of dividends, debts or assets.
- Shareholders & directors need not necessarily be a resident in the BVI.
- There are no statutory requirements for Annual General Meeting. In addition, meetings can be held by electronic means or telephone.
- Director’s or shareholder’s meetings are not required to be held within the British Virgin Islands unless for .
- Accounting records, minutes and other records can be maintained outside the British Virgin Islands.
- After satisfying due diligence requirements, incorporation can be effected within one or two days.
- There are no disclosures or specific capitalization requirements.
- Incorporations in BVI come with highly competitive fees and costs.
- In case of the death of a sole director who is also a sole shareholder, a reserve director can be appointed to act.
- There are no requirements for appointing auditors, filing financial statements and public or government reports.