British Virgin Islands (BVI): Why Is It a Popular Destination for Companies?
Many companies today are looking for tax havens located outside of their home country. They do not plan to evade taxes, but they do want to pay only a fair amount of taxes for their business. One of the most popular of these tax haven jurisdictions is the British Virgin Islands, or BVI. Companies will find quite a few advantages to moving their business to the islands.
Why the BVI?
First, those who have their companies set up in the British Virgin Islands will enjoy security for their assets, which they might not have in their own country. The security also offers the ability to transfer domicile. It is possible to protect the assets of the company in order to benefit the members and creditors by transferring those assets to another company, partnership, foundation, or even trust. The company director will have to do this, but it is an excellent way to ensure the company assets are safe and secure.
Of course, one of the other great reasons for setting up a company in the BVI is for the tax advantages. They do not have to pay any local taxes or stamp duty. This turns out to be financially advantageous to companies of all sizes.
Privacy is very important for many businesses and their owners as well. In the British Virgin Islands, companies have the highest possible levels of confidentiality in their business doings. The BVI does not contain any requirements to provide information to outside entities, which means the company’s information is far more secure in the BVI.
It is relatively easy to set up, maintain, and run a company in the British Virgin Islands. To set up a company there only needs to be a single subscriber and shareholder. People are setting up companies with a variety of different purposes in the BVI. They have companies set up for things such as holding property, trading, licensing and copyrighting, investment, and more. This jurisdiction also has the benefits of there being no minimum capitalization regulations, and no disclosure agreements.
Setting up a company in the British Virgin Islands also happens to be cost effective, especially when compared to some of the other countries. Switzerland and Bermuda, while offering some nice advantages, are more expensive to get set up in, and that might be prohibitive to some businesses. The British Virgin Islands is a cheaper alternative, more in line with some countries in Central America. However, one of the other added advantages of BVI is the fact that it is actually politically stable. You should have virtually no fear of political unrest causing an issue with your company.
Create It Right
While the BVI is a great place to set up an offshore company, you do need to make sure you are doing it right. Since most people do not create offshore companies every day, it is a good idea to have someone who can help and advise you in the creation of the company. If you feel comfortable in doing it on your own, it’s possible. Having added help can be a real benefit though.