BVI Company Formation | Incorporate BVI Offshore From Dubai
BVI company formation: Introduction to BVI offshore. Disclosure treaties with US, EU, UK, advantages
1. BVI company formation: Tax treaties
British Virgin Islands (BVI) offshore companies have been favorites for decades. However recently BVI entered into information exchange agreements with the US, UK and the EU.
This makes BVI attractive for offshore trusts.
BVI is also ranked # 20 in the Financial Secrecy Index.
It is a major tourist center. The British Virgin Islands are famous for their beauty and tranquility. They are a fabulous sailing destination, while also incorporating the most number of offshore companies of any jurisdiction, every month.
The concessions granted and incentives offered by friendly BVI laws attract numerous businessmen to the islands every year.
A BVI offshore corporation incorporated in the British Virgin Islands for the purpose of offshore business is termed as an International Business Company (IBC).
For the purposes of regulation of this business, the BVI Companies Legislation was introduced in 1984. This legislation was subsequently amended to accommodate client friendly changes required by IBCs.
Since 9/11, both the EU and the US have been glaring at tax havens and pressurizing them to disclose the names of their clients. And also to conform to their own tax laws.
Under pressure the BVI government signed treaties with the UK and the European Union to impose certain taxes in the same way as these are imposed in the EU countries.
This has greatly reduced the tax benefits previously provided to BVI local companies. The taxes imposed are withholding taxes and are charged at the rate of 15%.
Still BVI is considered to be a good offshore jurisdiction. Trusts are becoming more popular.
Once all the requisite Know Your Client (KYC) information is provided the offshore formation can be completed in 3 working days. However more time is spent on collecting the required documents!
2. BVI company formation: Advantages
- Only one director or shareholder is needed for an offshore company
- Both a natural person or a corporate body can be directors and / or shareholders
- Keeping of accounts, records and financial statements is not required
- A resident secretary is not required
- Company meetings can be held anywhere in the world
- Meetings of shareholders and directors are also not required
- If records are kept, they can be held anywhere in the world
- Appointment of local shareholders or directors is not required
- Director and shareholder can be one and the same person
- Meetings can be held by using telephone or any other means of communication through which voice can be transmitted and clearly heard
- Cost of incorporation are low
Though the best developed, it is one of the closest to the United States and so vulnerable to pressure! However BVI banking is cumbersome.
Does the content of this page about BVI company formation resonate with you? If yes, please share it with your friends using one of the social media buttons or start a chat with us below.