BVI
High Degree of Confidentiality
Incorporating a business in the British Virgin Islands (BVI) is a favored option for both individuals and companies seeking enhanced privacy, asset protection, and a flexible business environment. Below is an overview of the privacy features and other advantages of BVI incorporation:
Confidentiality and Privacy in BVI
No Public Disclosure of Beneficial Owners
BVI regulations do not mandate the public disclosure of the beneficial owners—those who ultimately control or own the company. While this information is required to be maintained by the registered agent and submitted to the BVI Financial Investigation Agency’s secure private database (BOSSs), it remains confidential and is not available to the public.
Shareholders and Directors
There is no requirement to publicly file the details of shareholders or directors in BVI. Only the memorandum and articles of association need to be filed with the BVI Registry, and these documents are available to the public, though they do not contain any information on ownership or directorship.
Bearer Shares
Bearer shares, which previously allowed for the transfer of ownership by physical possession, are now heavily restricted due to international regulatory requirements. They must be held by an approved custodian, and the custodian is required to know the identity of the actual owner.
Nominee Services
The use of nominee directors and shareholders is common in BVI to further preserve privacy. These nominees are listed in official documentation, while the true control remains with the beneficial owner through private agreements.
Additional Benefits of Incorporating in the BVI
Tax Neutrality
BVI Business Companies enjoy tax neutrality, meaning there are no corporate income taxes, capital gains taxes, or inheritance taxes levied by the jurisdiction.
Ease of Maintenance
There is no obligation to submit annual financial statements or tax returns, unless the business is conducted locally.
Quick Setup
Incorporation in the BVI is typically quick, with companies often being formed within 1 to 2 business days.
Flexible Corporate Structure
The BVI does not require local directors or shareholders, and corporate directors are permitted.
Stable Legal Framework
The legal system in the BVI is based on English common law, and the final appeal can be made to the Privy Council in the United Kingdom.
Additional Considerations
Economic Substance Requirements
Certain businesses in the BVI, such as banking, insurance, and fund management, are required to meet economic substance criteria, ensuring that they have a genuine presence in the jurisdiction.
International Compliance
The BVI adheres to international regulations, including OECD and FATF standards, and may share information with foreign tax authorities as per treaties like CRS and FATCA.
Professional Services Required
To incorporate and maintain a business in the BVI, a licensed registered agent is required to handle the process and ensure compliance with local regulations.
