The British Virgin Islands, A British territory in the Caribbean, is regarded as one of the oldest and reputed offshore business destinations. Also, it is one of the oldest offshore financial centers of the world that holds a benchmark for numerous benefits.
Since 1984, the region has been performing as an offshore destination and has been successfully turned itself into a home to multiple business offshore business centers.
Global investors, MNCs, high-net-worth individuals prefer to proceed ahead with the investment process in the destination. This guide highlights the essential parameters that drive the investors to proceed with the same.
1. Complete Tax Exemption
Tax is one of the primary considerations when it comes to business incorporation. The British Virgin Islands (BVI) provides a relaxed business environment to the business investors to proceed ahead with the establishment of an offshore company. By incorporating an offshore business unit in the BVI, one gets complete exemption of the following tax list:
- Income tax
- Capital Gains
- Inheritance tax
- Gift tax
Apart from the points mentioned above, the instruments related to the transfer of assets are exempted from stamp duty and land ownership. This makes the business owner free when it comes to the tax process.
2. Business Structure Flexibility
When it comes to a business establishment, a BVI company can be formed with the help of only one owner, shareholder, or director. Another move is that a single person can hold all three positions, and can restrict from appointing different officials. It holds another flexibility that the respected positions can be held by individuals or by corporate entities.
The business owners also hold the flexibility to conduct business meetings on telephonic grounds and can be conducted anywhere in the world. In case of a single individual is handling the positions, he/she may appoint a reserve director to carry out the business operations in his/her place in the event of death.
3. Freedom from the Obligation of Maintaining Business Records
Another flexibility that is provided by the British Virgin Islands (BVI) is that they don’t impose any obligation when it comes to maintaining the business records.
However, the complete business transactions are to be maintained accordingly that can be presented at any point in time to provide accuracy. Also, there is no compulsion to maintain the audit files.
4. Allowance of Bearer Shares
In management terms, a bearer share is an unregistered equity share that is held by an individual who ultimately holds the physical stock certificate. These shares are used as financial instruments that are used as a convenient tool to secure funding.
Alternatively, these instruments are also used to secure the funds for terrorism and other criminal activities. Although most of the popular offshore destinations have restricted the usage of bearer shares, the British Virgin Islands (BVI) still hold room for the same.
The bearer shares may not be allotted directly to the business owner, but it is to be kept in the custody of a licensed custodian in the BVI.
5. Multiple Types of Incorporation
The British Virgin Islands is a widely opted option for business investors as it provides multiple incorporation options. A BVI business company can be operated using the following corporate structures:
- A company limited by shares
- A company limited by guarantee
- An unlimited company
- Segregated portfolio company
- Restricted purpose company
6. Appointment of Agents
The directors of a BVI company may appoint any person (even an existing director) to facilitate as an agent of the company. Once appointed, their names are to be included in the Memorandum of Association (MOA). These appointed agents would be holding the same powers as the directors may prescribe.
Thus, you can see that the points mentioned above are the core grounds that urge the business investors to proceed ahead with offshore business incorporation in the region of BVI. While proceeding with the company setup process, it is to be taken care of to conduct the process in an error-free way. It is advisable to proceed ahead with the expert’s guidance, which will help you to clear the same effectively.