Why bvi incorporation

Transactions are professionally handled and transaction fluency is optimised. Innovative trust structures. Trust law has been heavily modified in the BVI to remove un-commercial common law provisions. Debt financing. The BVI has a quick and simple system relating to secured creditor registration which facilitates leveraging assets where a BVI company needs to do so in order to raise capital. BVI law recognises "foreign" law transaction and security documents over assets and shares of a BVI company.

The BVI also has the most developed insolvency system in the offshore world, which is very friendly to secured creditors and, while not usually a key consideration for companies, is attractive for lenders. Commercial Court. Commercial ventures can, and sometimes will, go wrong and result in disputes.

The BVI Commercial Court enjoys a sterling reputation in the offshore world both for delivering judgments which are consistent with commercial good sense, but also maintaining swift access to justice, and thereby avoiding the lengthy delays and sometimes arbitrary decisions which have characterised the judicial process in other jurisdictions. Offshore structuring will always be driven by relevant considerations of the underlying transaction or structure.

No one offshore structure can be all things to all people, but the dominance of the BVI product in the market suggests that BVI structures can seemingly be most things to most people.

Owing to its corporate advantages, the BVI company has evolved as a highly proficient facilitator for the global flow of finance. The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances. All Rights Reserved. Password Passwords are Case Sensitive.

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Learn More Accept. British Virgin Islands. Wealth Management. Your LinkedIn Connections with the authors. To print this article, all you need is to be registered or login on Mondaq. The following guide highlights the key benefits of using a BVI corporate structure. For example: a single director and single shareholder are sufficient no requirement for a company secretary no residency requirements for directors no requirements as to frequency or location of meetings of directors or shareholders telephone meetings and written resolutions executed in counterpart are permissible no requirement for audited financial statements no required annual filings cost efficient registered office and agency services straightforward corporate recordkeeping requirements and flexibility as to where the original corporate records can be maintained 8.

New and innovative products, such as VISTA trusts and private trust companies have driven the popularity of trusts, combined with rules refining restrictions to applicable non-charitable purpose trusts and rules against remoteness of vesting. Offshore Protectors: Bermuda Or Jersey? The judgment forms a landmark in wider trust proceedings being heard before the Supreme Court of Bermuda. While there must be a limited partnership agreement whether separately written or by deemed adoption of the statutory model , written limited partnership agreements are not filed on the public record, but are held confidentially by the partnership's registered agent.

BVI law also recognises traditional general partnerships, utilising the same basic concepts as English law in respect of general partnerships — most of which are repeated in the Partnership Act This means that the partnership does not have a separate legal personality from that of its constituent partners and all partners have unlimited liability for the debts of the partnership.

No formal steps or public filings are required to form a partnership under BVI law, but it would be usual for the parties to enter into a partnership agreement to regulate the conduct of the partnership.

BVI law does not have a concept of limited liability partnerships with a corporate identity distinct from that of the partners. The registered agent responsible for the incorporation of a BVI company or registration of a limited partnership is required by statute to obtain certain "know-your-client" information about the directors, shareholders or partners as appropriate. This obligation on registered agents to establish the identity of those persons wishing to form and manage the company or other entity is required to ensure that BVI entities are not being used for money laundering or other criminal purposes.

When setting up a BVI entity, the participants should therefore be ready to provide certified copies of their photo ID and proof of address, together with professional reference letters. If they are corporate, nominee or trustee entities, then this information will be required of all participants up the chain to the ultimate individual beneficial owners.

This information is retained for compliance purposes and is not put on the public record. However, registered agents may be required to disclose information to authorities in connection with a specific investigation of wrongdoing in respect of a company. Ours is the only firm to advise on these five laws. We regularly win awards for the quality of our client service, our work and our people.

This client briefing has been prepared for clients and professional associates of Ogier. The information and expressions of opinion which it contains are not intended to be a comprehensive study or to provide legal advice and should not be treated as a substitute for specific advice concerning individual situations.

Regulatory information can be found at www. Employment Law. Private Equity. Restructuring and Corporate Recovery. Once directors have been appointed, they will be able issue shares to the shareholders. Choice of Appropriate Form of Entity The Act provides that a BVI company can be incorporated as either a company limited by shares as is most usual ; a company limited by guarantee which is not authorised to issue shares; a company limited by guarantee which is authorised to issue shares; an unlimited company which is not authorised to issue shares; or an unlimited company which is authorised to issue shares.

A BVI offshore company has a wide variety of business uses and great benefits. Thus, it can be a smart business move for your business life.

This article will explore what a BVI company is, the benefits it provides, and the uses it has. An IBC is a private corporation. One reason a person might use it for international business activity because it avoids certain taxes. In addition, a BVI offshore companies has strict confidentiality provisions and a flexible organizational structure. It eliminated any discrimination between the two types and making a BVI offshore company more accessible worldwide.

The BVI have strong political stability and a low international profile. As such, it makes for an ideal location for an offshore tax haven. BVI has an independent judicial system based on English common law.

The U. The BVI has more than , incorporations registered, with more than 5, new companies registering every month. Investopedia defines a tax haven as a country that offers foreign individuals and businesses a low tax liability; especially within a politically and economically stable environment. Tax havens share little to no financial information with tax authorities.

Thus, they often do not require companies or individuals to live in or operate out of the country to receive these benefits. In addition, tax havens are not only beneficial to the individuals and companies using them. They are also beneficial to the host country as well. Tax havens draw capital from their banks and financial institutions, which can result in a strong financial sector. Individuals and companies utilizing a tax haven country have zero to low single digit tax rates.

This is as opposed to the higher rates they would receive in their home country. For example, the US government taxes its citizens and residents on worldwide income.

So, setting up a company in a tax haven such as BVI is generally tax-neutral for such individuals. One of the reasons people choose to incorporate an offshore company is for tax avoidance. This benefit, however depends on the jurisdiction of the owner.

Tax reduction is only one of the many BVI company benefits. Maples explains that people often choose BVI for their common law legal principles. Moreover, BVI has administrative simplicity, and security. Beyond that, BVI companies:. With hundreds of thousands of companies incorporated in BVI, and more incorporating every day, it would be nearly impossible to get a complete list of BVI companies.

One of the reasons they are chosen, after all, is for their increased privacy.