BVI Offshore International Business Companies (IBCs)

The British Virgin Islands are a British dependence sited in the Eastern Caribbean, roughly 80 kilometres East of Puerto Rico. English is the official language and the United States Dollar is the local currency.

The Government is steady and seems to remain that way.  There is good commercial and professional connections and the Government encourages the development of the offshore finance business.

BVI IBCs

The International Business Companies Act was passed in 1984 and formed the International Business Company which is the preferred offshore company vehicle.  Recently the BVI has become extremely popular, particularly in the Far East region, due to the extensive marketing of the jurisdiction, mainly by lawyers who moved from Panama during the Noriega regime and set up offices in the BVI.

Incorporation can be achieved within 24 hours.

Local requirements
As a matter of local company law the company must maintain a registered office address within BVI and must also appoint a BVI resident as registered agent.

Name and Activities restrictions
Names must end with one of the following words, or abbreviations – Limited, Corporation, Incorporated, Societe Anonyme or Sociedad Anonima.
The following words, and their associated activities, cannot be used: Assurance, Bank, Building Society, Chamber of Commerce, Chartered, Co-operative, Fund, Imperial, Insurance, Municipal, Mutual Fund, Royal and Trust.

Companies’ Directors
A minimum of one director is required and corporate directors are acceptable. Details of the directors do not come out on the public file.

Shareholding
A minimum of one shareholder is required and either registered or bearer shares may be issued. No details of the shareholders become visible on the public file but a register of shareholders must be kept at the registered  office address of the company in BVI.

Taxation and Annual Reporting
IBCs pay no taxes in BVI.
No annual return or accounts need be filed, only a license fee must be paid yearly.  It should be noted that penalty fees of up to 50% of the annual Government fee will be incurred if the licence fee is not paid when due.

Secrecy
There are no specific legal provisions governing secrecy in relation to companies but English Law, which applies within the jurisdiction, does impose a common law duty on professionals to keep the affairs of their clients confidential.

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Remark:

Whilst every effort has been made to ensure that the details contained herein are correct and up-to-date, this information does not constitute legal or other professional advice.