Register Company in BVI

Fionza Consultants specializes in facilitating the seamless registration of companies in the British Virgin Islands (BVI) for our international clients. Our comprehensive service package encompasses BVI company formation, corporate bank account opening, and the application process for financial licenses. Trust Fionza Consultants as your all-in-one solution for conducting business through your BVI company.

BVI

Company Registration – 1 Week
Local Director? – No
Bank Account Opening – 4 Weeks
Travel Required – No

Register company in BVI

Experience a hassle-free BVI company registration process with the expert assistance of Fionza Consultants. Our streamlined approach ensures that you can focus your time and energy on crucial aspects of your company, leaving the complexities to us.

Benefit from our efficient, results-driven team that navigates the entire process, aiming to have your BVI company operationally ready within the specified timeframe. Our service package encompasses all essentials for your business needs:

BVI company registration with the British Virgin Islands Financial Services Commission
Local company secretary and registered address
Opening local or international corporate bank accounts
Financial license application (if required)
Annual accounting and tax services

Discover more about the seamless process of registering your company in BVI. Contact us, and our team of experts will respond within the next 24 hours to guide you through the details.

How long does it take to register a BVI company and open corporate bank account?

Count on Fionza Consultants to fast-track your BVI company registration in just one week. Upon receiving the necessary due diligence documents for directors and shareholders, our team swiftly checks the availability of your preferred company name in the Companies Registry. The entire BVI company formation process is efficiently handled, eliminating the need for travel.

Upon successful BVI company registration, you’ll receive comprehensive details, including your company number and certificate of incorporation. In the subsequent four weeks, Fionza Consultants ensures the seamless opening of a corporate bank account with a globally recognized bank. As a result, you can anticipate commencing operations with your BVI company within five weeks of engaging Fionza Consultants.

For those eager to understand the process in detail, Fionza Consultants has meticulously outlined a step-by-step explanation of all the necessary procedures for BVI company incorporation. Contact us to delve deeper into the streamlined journey of establishing your BVI company.

Can a foreigner start a business in BVI?

Explore the allure of BVI for foreign investors with its enticing offshore tax exemptions, secured shareholder information confidentiality, and a straightforward incorporation process. As a sought-after jurisdiction, BVI offers a range of business entity options for foreign investors, and Fionza Consultants is here to guide you through the steps and requirements for initiating business in BVI.

Notably, BVI stands out by not mandating a resident director, allowing companies to be fully foreign-owned. Typically, a single director and shareholder of any nationality, along with a company secretary, suffice for BVI companies. These roles can be held by the same or different individuals, or even by corporate entities. However, a registered address in BVI and a local registered agent are essential components.

There is no minimum paid-up share capital requirement for BVI companies, enhancing flexibility for businesses. For entities established outside BVI, a certificate of incumbency may be necessary, providing details on shareholders, directors, share numbers, formation date, and legal standing.

BVI offers diverse business structures, each with unique features. When selecting the most suitable entity, crucial factors such as personal liability protection, ownership flexibility, management structure, and compliance requirements should be considered. Fionza Consultants, prior to engagement, thoroughly understands your business, taking into account factors like business activity, tax obligations, and the nationalities of shareholders and directors. Our consultants provide detailed information on entity setup requirements and recommend the optimal business structure in BVI for your specific needs. Contact us to embark on a seamless journey to establish your business in BVI.

What is a Tax Haven?

Explore the allure of Tax Havens, encompassing nations like Dominica, the Republic of Panama, and The Bahamas, united by a common trait. These offshore jurisdictions boast politically and economically stable economies, providing international investors and individuals with minimal or even zero tax liability.

In theory, this unique characteristic has captivated numerous investors and companies, prompting them to opt for these countries as ideal locations to minimize or eliminate tax obligations.

BVI Tax Haven

Discover the British Virgin Islands (BVI), a prominent Tax Haven where tax regulations are notably straightforward. With no taxes on offshore accounts and the absence of tax treaties, the BVI firmly holds its Tax Haven status. The BVI has established a “territorial tax system” through simple taxation rules, delivering numerous advantages to its companies. Notably, the BVI imposes no capital gains, gifts, sales, value-added, profit, inheritance, or corporation tax. Employee salaries face a modest tax rate of 10%, with an additional 14% for the employer if the annual payroll exceeds US$150,000 or the annual turnover surpasses US$300,000.

The appeal of this attractive tax regime has drawn many investors to register companies in the BVI and establish foreign-invested enterprises, leveraging the tax benefits provided. Despite the apparent allure of low tax rates, it’s essential to carefully examine and understand the associated limitations. Despite recent efforts to combat tax evasion through anti-money laundering laws, Fionza Consultants generally advises considering more reputable jurisdictions such as Singapore, Hong Kong, the UK, or Dubai when setting up offshore companies. Dive into the nuances of BVI taxation to make informed decisions before proceeding with company registration.

Types of companies in BVI

Offshore companies go by various names in different countries, commonly known as the International Business Company (IBC) in the British Virgin Islands (BVI). The IBC, legalized under the 1984 International Business Companies Act, is alternatively referred to as non-resident companies, exempt companies, special license companies, and more. Despite a shift to a level zero-tax for all businesses in 2004, new companies in the BVI are now officially termed “Business Companies.”

Irrespective of nomenclature, these entities, or “judicial persons,” operate independently, and their tax benefits are defined by the laws of the registration country. Although commonly known as the “BVI Business Company,” many continue to refer to it as the traditional “International Business Company.”

The BVI offers a choice of seven business entities, leading to potential confusion in selection. Fionza Consultants, before engagement, thoroughly understands the client’s business, considering factors such as business activity, tax obligations, and the nationalities of shareholders and directors. Consultants provide detailed information on entity setup requirements, helping clients make informed decisions.

1. Company Limited by Shares:

Common for issuing shares, limiting personal obligations for members and managers.
Requires at least one shareholder and one director; no nationality restrictions.

2. Company Limited by Guarantee and Not Authorized to Issue Shares:

Popular for non-profit organizations.
Requires at least one guarantee member with voting rights.

3. Company Limited by Guarantee and Authorized to Issue Shares:

Merges features of a company limited by shares and a company limited by guarantee.
Allows the guarantee member to be a shareholder.

4. Unlimited Company Authorized to Issue Shares:

Members or managers personally liable for company debts.
Unlimited shares can be issued.

5. Unlimited Company Not Authorized to Issue Shares:

Members may be personally liable for debts; no share issuance allowed.

6. Restricted Purpose Company:

Registered for transactions with limited purposes, such as insolvency-remote issues.
Cannot amend its memorandum or certain resolutions after registration.

7. Segregated Portfolio Company:

Owns separate portfolios with distinct assets and liabilities.
Commonly chosen for holding assets or operating multiple businesses.

Adopting these business forms involves understanding their unique characteristics, and Fionza Consultants provides expert guidance to navigate the intricacies of BVI company registration.

How to register a company in British Virgin Islands?

Step 1: Optimal Business Structure Selection

Before initiating BVI company registration, it’s crucial to select the right business structure aligned with your business model and long-term objectives. Fionza Consultants will provide expert advice on the most suitable business entity, paid-up share capital, and corporate structure. The commonly recommended type is a company limited by shares.

Step 2: Name Reservation

Fionza Consultants will conduct a thorough search to confirm the availability of your chosen company name through the BVI company registration search. Upon confirmation, we’ll reserve your company name with the BVI Commercial Registry for a period of up to 90 days.

Step 3: Appointment of Registered Agent

While a resident director is not obligatory for an International Business Company in BVI, appointing a registered agent is mandatory. Fionza Consultants will recommend and appoint a registered agent on your company’s behalf.

Step 4: Document Preparation and Submission

Before incorporating your BVI company, you need to provide necessary KYC documents, including directors’ names, company resolution, and identification proof. Fionza Consultants will draft and notarize essential documents like the Memorandum and Articles of Association, business plan, and other incorporation documents. Following document preparation, we’ll register your company through the BVI companies registration office.

Upon successful registration, we’ll courier essential documents, such as the BVI company business registration certificate and Memorandum and Articles of Association, to your specified address.

Step 5: Corporate Bank Account Opening

Facilitated by Fionza Consultants, the process of opening a corporate bank account will be streamlined based on your business structure. While local bank account options are limited in BVI, we’ll assist in consolidating the necessary documents for account opening with a reputable international bank. Our team can negotiate with banks for remote processes or accompany you to in-person meetings if required. Upon successful account creation, we’ll dispatch the internet banking token and access codes to your preferred address.

Step 6: License Application

Fionza Consultants will assess if your company requires any licenses based on its activities. For instance, investment activities may necessitate a license from the BVI Financial Services Commission, and trade activities with locals may require a trade license. Our team will handle the application process for the relevant license tailored to your business scope and nature.

Accounting and tax obligations

Accounting and Tax Considerations for Your BVI Company

Incorporating your company comes with significant accounting and tax considerations. Entrusting these responsibilities to Fionza Consultants ensures that you are in capable hands. Our team of consultants is dedicated to ensuring timely completion of your firm’s financial statements and audits, where applicable.

In the BVI, there is no corporate tax, and the majority of BVI companies are exempt from filing annual returns. Only companies involved in fiduciary services or those holding an investment business license are obligated to prepare and submit audited annual returns to the Financial Services Commission. For most companies, maintaining good standing involves paying an annual fee, and filing an annual return is unnecessary.

Following the Economic Substance Act of 2019, companies engaged in relevant activities must report specific information, including annual turnover, expenditure, and the number of employees. This data needs to be submitted to the Beneficial Ownership Secured Search (BOSS) system within six months after the financial period concludes.

While most BVI companies are not obliged to file accounts, they are expected to prepare and keep financial records. These records must be maintained for a minimum of 5 years from the termination date of any business relationship or the completion date of transactions relevant to the records and documents. This comprehensive approach ensures compliance with regulations while optimizing the financial operations of your BVI company.

Why do companies register in British Virgin Islands?

Political Stability and Offshore Benefits in the British Virgin Islands

The British Virgin Islands (BVI) boasts a politically stable government, providing an advantageous offshore environment for companies. The flexibility of corporate legislations facilitates efficient operations for businesses, supporting their core commercial activities.

However, investing in a tax haven like the BVI carries risks. Political instability may lead to the government implementing exchange controls, impacting investments. The UK Parliament’s 2018 decision to enforce transparency on the BVI and other British Overseas Territories raised concerns about government transparency, especially with leaked reports revealing politicians with undisclosed offshore accounts.

Economic Advantages and Challenges

The BVI’s adoption of the US dollar simplifies trade and investment activities, streamlining financial reporting and management. The low company registration and renewal fees make setting up a company cost-effective, allowing businesses to allocate funds to other crucial aspects like capital investment.

Despite these advantages, establishing a corporate bank account in the BVI can be challenging due to enhanced due diligence checks, leading to potential delays.

Social Landscape and Disparities

The BVI boasts a high literacy rate of 97.7% (2010), and its crime rate is significantly lower than neighboring countries. However, despite the offshore economy’s wealth, a considerable portion of the population lives in poor conditions, highlighting social inequalities.

Technological Innovation and Digital Economy

The BVI demonstrates a commitment to technological innovation through initiatives like the Regulatory Sandbox Framework, fostering an environment for financial technology and regulatory innovation. The government’s focus on the “BVI Digital Economy” signifies a strategic move into cyberspace, with plans to launch BVI~LIFE, a digital currency, aimed at improving business operations, reducing transactional fees, and increasing transaction speed.

Legal Framework and Investor Protection

The BVI Business Companies Act offers flexibility in incorporating various types of companies. The act also prioritizes the privacy of companies, safeguarding information accessible only by trust management companies. The Commercial Court is known for delivering consistent and swift judgments in commercial disputes, offering reassurance to businesses.

Despite lax taxation rules, the BVI has enacted robust anti-money laundering and anti-terrorist financing legislations, surpassing international standards. Past leaks revealed the BVI’s vulnerability to money laundering and tax evasion, prompting increased scrutiny and regulatory measures.

Environmental Commitment

Organizations like Green VI showcase the BVI’s commitment to environmental sustainability. The Green Paper on the Proposed Environmental Management and Climate Adaptation Bill underscores the government’s dedication to safeguarding the environment, proposing mechanisms for addressing environmental issues.

In conclusion, while the British Virgin Islands present lucrative opportunities, investors should weigh the political, economic, social, technological, legal, and environmental factors to make informed decisions and navigate potential challenges.

Alternative to British Virgin Islands offshore company formation

Quickly Set Up Your Business in the BVI: Explore the Benefits of Buying a BVI Shelf Company

For entrepreneurs seeking a swift entry into the business landscape of the British Virgin Islands (BVI), opting to buy a BVI company, also known as a shelf company, can be a strategic choice. A shelf company is essentially a pre-registered offshore entity, crafted by a Registered Agent, with no prior business activities, debt, or obligations. This ready-made solution, essentially a BVI business for sale, enables business owners to kickstart operations promptly.

Despite the potentially higher cost compared to incorporating a new company, purchasing a BVI shelf company with a bank account offers several advantages that can prove invaluable. One key benefit is the significant time saved. By bypassing the lengthy process of preparing incorporation documents for a new company, entrepreneurs can expedite the commencement of their business activities.

Another noteworthy advantage is the potential for an earlier registration date, a factor that holds importance in various business transactions. For instance, having a longer-standing registration can facilitate easier loan approvals, as many bank lenders prefer companies with a track record of several years. Similarly, established shelf companies are often viewed favorably by trading partners due to the perceived attributes of experience and reputability.

However, it’s crucial to consider the trade-offs. When purchasing a shelf company, you forfeit the option to customize your company’s structure according to your preferences. Additionally, if you decide to change the name of your shelf company, you’ll incur additional fees payable to the Registrars of Companies in the BVI.

In summary, acquiring a BVI shelf company presents a convenient and time-efficient option for entrepreneurs looking to establish a presence in the BVI business landscape. The advantages of a swift start, an earlier registration date, and increased credibility can outweigh the costs and limitations associated with this approach.

Looking to register company in BVI?

Contact us to find out more about how to register company in the BVI. Our team of experts will revert within the next 24 hours.

FAQ

How do I check if a company is registered in BVI?

To check if a company is registered in BVI, you will have to approach the BVI Commercial Registry. The BVI Commercial Registry will conduct the search and communicate the relevant information to you. Besides being able to check whether a company is registered in the BVI, you can also search for a company’s general information such as the BVI company registration number, the date of registration and the address of its registered office. A small fee will be charged by the Registrar of International Business Companies BVI for the use of this service.

Alternatively, you can engage the service of the British Virgin Islands Chamber of Commerce. The BVI Chamber of Commerce will perform a BVI company search or a BVI company director search through the Financial Services Commission for a fee of $75 for the first company and $45 for any additional company.

How much does it cost to register a company in BVI?

The engagement fee for BVI offshore company registration depends on the services you require from Fionza Consultants. Prior to each engagement, our team will fully understand your business needs and inform you of the exact services you require.

For example, you may not require our bank account opening services if you already have a bank account with some banks.

Fionza Consultants’ fees include government fees such as business name reservation charges, registration fees and other miscellaneous fees.

Is there a BVI company register?

Yes, there is a BVI company register that is kept and maintained by the BVI Registry of Corporate Affairs. The BVI company register contains general information about every company registered in the BVI. This includes information about the company’s registration number, date of registration, number of shares the company is authorized to issue, company’s registered agent and the address of the company’s registered agent if applicable.

The Registry of Corporate Affairs in the BVI is in charge of implementing the BVI Business Companies Act, verifying that all entities conducting trade from the BVI are properly registered, and maintaining the Register of Companies.

How does a BVI Company Work?

There are several types of BVI company which you can incorporate. This includes a limited company, unlimited company, restricted purpose company and a segregated portfolio company.

There are two types of limited company, a company limited by shares and a company limited by guarantee. A company limited by shares is the most common choice of company for companies seeking to set up in the BVI and is the equivalent to a private limited corporation in other jurisdictions. This means that shareholders’ liability is only limited to the amount of shares they own if the company becomes insolvent.

On the other hand, a company limited by guarantee does not have share capital and any liability incurred will fall only on the responsibility of guarantee members. In essence, the liability of the guarantee members will be limited to the amount that they guarantee to contribute if the company becomes insolvent. You can choose whether to set up a company limited by guarantee that is authorised to issue shares or a company limited by guarantee that is not authorised to issue shares.

To set up an unlimited company, your company is required to have at least 1 unlimited member who will be held liable for any debt and liability incurred by the company. Similarly, you can choose whether to set up an unlimited company that is authorised to issue shares or an unlimited company that is not authorised to issue shares.

To set up a restricted purposes company, your company must be limited by shares. A restricted purposes company is quite similar to a company limited by shares but can only be registered for companies who undertake trading and investment activities with certain specific purposes such as securitizations or the creation of several investment funds. The specific purpose of the company cannot be amended.

A segregated portfolio company is a type of restricted purpose company that can create more than one segregated portfolio of assets and liabilities. All the portfolios are legally segregated from each other, and from the company itself.

Do BVI companies have annual returns?

Most BVI companies do not need to file annual returns. Instead, they are required to pay an annual fee to maintain their company’s good standing. However, there are certain BVI companies which are required to file an annual return. For example, BVI companies that hold an investment business licence will be required to file an annual return to the Financial Services Commission within six months after the financial period has ended.

Although, most offshore companies in the BVI are not required to file an annual return, they will be required to report information pertaining to their annual turnover, expenditure and number of employees employed if they engage in activities such as banking, shipping, fund management, intellectual property and other relevant activities. This is in accordance with the Economic Substance Act implemented in 2019 to reduce tax evasion and other unfair tax practices. Similarly, the relevant information is to be submitted to the Beneficial Ownership Secured Search (BOSS) system within six months after the financial period has ended.

Do BVI Companies have to prepare accounts?

Yes, it is expected that BVI companies prepare accounts even though they are not required to submit them to the authorities. According to the BVI Business Companies Act 2004, every company should keep and maintain accounts and financial records which are able to indicate the financial position of the company and account for the company’s transactions. These records must be kept for at least 5 years from the date of termination of any business relationship or the date of completion of transactions which the records and documents are relevant to.

These records can be kept at the office of the company’s registered agent. In the event that these records are kept elsewhere, the location must be reported to the registered agent.

Do BVI companies need to be audited?

No, most BVI companies do not need to be audited because they are not required to submit an annual return. However, there are some exceptions. BVI companies that hold an investment business licence will be required to audit and file an annual return to the Financial Services Commission within six months after the financial period has ended. They are also required to prepare audited financial statements according to the international accounting standards. Specifically, since segregated portfolio companies are usually involved in investment activities such as fund management, they will be required to audit their annual reports and financial statements.

What is the best business in BVI?

The two major industries in the BVI are the tourism sector and the finance sector.

BVI is famous for its beautiful beaches, yachting activities and scenic parks. Every year, hundreds of thousands of visitors visit the islands to spend their holidays. As such, setting up a business in the tourism sector may be profitable, especially since many cruise ships also stop by at the BVI.

Another major sector in the BVI is the financial sector. BVI is one of the most attractive location for global companies providing offshore financial services due to the high levels of confidentiality and asset protection offered. There are also no corporate taxes in the BVI. With a well-developed investment banking industry and supporting infrastructure, BVI is an ideal location to open a finance company.

Register Company in BVI