The British Virgin Islands (“BVI”) is one of the world’s most preferable offshore financial centre and located in the Caribbean to northwest of Antigua. It consists of around 60 islands while the Tortola is the largest land.
Begin from January 1, 2007, the BVI Business Companies Act 2004 became the sole Business Companies Act in the jurisdiction. The changed Act has formalised and tightened the record keeping obligations of companies. However, this Act includes the statutory merger and consolidation provisions, which make it possible for two entities consolidated into the surviving entity. It makes BVI become much attractive for restructuring of companies and funds. Also, foreign company can set up their establishment in the “BVI” without necessity for reciprocal arrangements in its original country of incorporation. The new Act still preserves the benefits of zero tax for incomes.
Standard requirement for “BVI” Limited Company
|Proposed company name||Both English and Chinese are acceptable|
|Standard authorised share capital||US$50,000 at US$1 each or no par value|
|Minimum share capital||US$1|
|Minimum shareholder||1 Natural person or legal entity|
|Minimum director||1 Natural person or legal entity|
|Company Secretary||Not compulsory|
|Bearer shares||Prohibited unless meet (a)|
The company name of “BVI” should be ended with the word either “Limited, Corporation, Incorporated, Societe Anonyme or Sociedad Anonima”. Moreover, if company name with words “Bank, Insurance, Assurance, Re-Insurance, Trust, Trustee, Savings, Royal, Asset management, Fund Management, Investment Fund, Building Society, Municipal or Chartered”, they require licensing.
Advantage of “BVI” Limited Company