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The British Virgin Islands (BVI) is a British overseas territory located in the Caribbean Sea, with Tortola as its largest island and Road Town as its capital. Its legal system is based on English common law.

In 1984, the British Virgin Islands passed the International Business Companies Act, marking the beginning of its status as an offshore financial services jurisdiction.

The British Virgin Islands has become a market leader in company services, with over 368,000 international business companies registered here, making it a globally recognized offshore judicial jurisdiction.

Since then, the British Virgin Islands has consistently been one of the most popular offshore jurisdictions for the establishment of offshore companies globally, with a number of company registrations that can be considered the largest.

Ⅰ. Basic introduction of the British Virgin Islands

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  • The British Virgin Islands is one of the most economically prosperous areas in the Caribbean. Tourism accounts for 45% of the country’s revenue. The offshore company registration also brings considerable benefits. In the British Virgin Islands, agriculture, and industry account for only a small part of GDP. And agriculture mainly produces fruits, vegetables, sugarcane, livestock, and poultry. The industry is dominated by rum distillation, engineering, and shipbuilding.
  • Location
    Composed of 117 islands, located in the Indian Ocean, four to five degrees south of the equator.
  • Language
    English, Spanish.
  • Population
    About 30,240 people.
  • Currency
    USD.
  • Legal System
    British common law.
  • Time Zone
    UTC-4.
  • Economics
    It is one of the most economically prosperous countries in the Caribbean, relying on the tourism and yacht industry, and its main source of income is offshore financial services.
  • Foreign Exchange Control
    None.

  • Main Company Legislation
    Companies Act 2004
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Population
30,240 people.

USD
Currency

UTC-4
Time Zone

British common law.
Legal System

Main Company Legislation
Companies Act 2004

  • The British Virgin Islands is one of the most economically prosperous areas in the Caribbean. Tourism accounts for 45% of the country’s revenue. The offshore company registration also brings considerable benefits. In the British Virgin Islands, agriculture, and industry account for only a small part of GDP. And agriculture mainly produces fruits, vegetables, sugarcane, livestock, and poultry. The industry is dominated by rum distillation, engineering, and shipbuilding.
  • Location
    The British Virgin Islands are mainly composed of four major islands: Tortola, Virgin Gorda, Anegada and Jost Van Dyke, as well as more than 50 small islands and reefs, of which about 15 are uninhabited. Tortola is the largest island in the British Virgin Islands.
  • Language
    English, Spanish.
  • Economics
    It is one of the most economically prosperous countries in the Caribbean, relying on the tourism and yacht industry, and its main source of income is offshore financial services.
  • Exchange Controls
    There are no exchange controls.

Ⅱ. What are the advantages of setting up a BVI company?

One of the reasons why people choose to set up an offshore company is the tax advantage. Tax cuts are just one of the gains for BVI companies.

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The following are the benefits and features of setting up a BVI company.

  • Low maintenance cost.
  • No need to provide capital in place.
  • Can be listed on global stock exchanges.
  • Permitted Classes of Stock: Corporations may issue various classes of stock, including registered stock, no-par value stock, preferred stock, redeemable stock, and stock with or without voting rights.
  • Often used to invest and hold foreign entity companies.
  • The shareholders, directors, and managers of offshore companies in the British Virgin Islands can be individuals or companies and can be of any nationality. The shareholders or board meetings do not need to be held in the British Virgin Islands, nor do they need to convene an annual general meeting of shareholders.
  • Set up an offshore company in the British Virgin Islands, each beneficial owner, shareholder and director must provide detailed information to the registered agent, including legal copies of identification documents and proof of address, and always keep this information updated. The information of beneficial owners and shareholders is kept confidential in the registered agent’s office.

Ⅲ. Regulations related to BVI company registration

  • Registration requirements
  • 1.Company name:
    The registered name of the BVI company must not be the same or similar to the name of the existing company. The name must end with Limited, Corporate, Incorporated, Societe Anonyme, or Sociedad Anonima, and use their respective abbreviations, such as Ltd., Corp., Inc., and names that may suggest patronage from the Crown or the British Virgin Islands Government. The company name cannot use words such as Assurance, Bank, Building Society, Chamber of Commerce, Chartered, Cooperative, Imperial, Insurance, Municipal, Royal, or Trust.
  • 2.Directors and shareholders:
    A British Virgin Islands company requires at least one shareholder and one director. They can all be the same person. Except for directors, the company does not need to appoint any operating personnel.
  • 3.Registered capital:
    The standard authorized capital (registered capital) is generally 50,000 shares with a par value of 1 yuan per share. If it exceeds, local government fees will be increased.
  • 4.Registered agent:
    ◎ Each company must have a registered agent located in the British Virgin Islands.
    ◎ The registered agent must be licensed in the British Virgin Islands.
    ◎ The registered agent acts as an intermediary between the company’s registered office, the International Tax Authority (ITA) of the British Virgin Islands, and the company.
    ◎ The services provided by the registered agent include company registration, nomination of directors and/or shareholders, company secretary, and company management.
  • 5.Shares:
    No bearer shares are allowed, complying with international transparency standards and regulatory requirements.
  • 6.Currency:
    Shares can be issued in any currency.
  • 7.Restrictions:
    ◎ Cannot own real estate and trade in the British Virgin Islands.
    ◎ Cannot engage in banking, insurance, guarantees, reinsurance, fund management, collective investment schemes, trust management, custody, provision of investment advice or any other activities related to the banking or insurance industry.
    ◎ Not allowed to sell their shares to the public or engage in any gambling-related activities.

IV. Process for registering a company in the British Virgin Islands (BVI):

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  • 1.Reserve a Company Name through a Registrar:
    This is done to ensure each company has a unique name; the name will end with an abbreviation of the company type. In order to indicate limited liability, the company name must contain a specific suffix, such as Limited, Corporation, Incorporated or its related abbreviation.
  • 2.Prepare Company Documents:
    In the process of creating the company’s organizational articles of association, Inter Area can provide assistance.
  • 3.Submit Registration Documents:
    All company documents, details of the founding persons (not public), and details of the registered agent will be submitted to the company registrar for registration.
  • 4.Open a Bank Account for the B.V.I Company:
    After completing the registration of a BVI company, you will need to open a bank account for the company. Typically, businesses opt to open commercial (offshore) accounts in overseas regions such as Singapore or Hong Kong. Different regions and banks have varying requirements for documents and procedures. Therefore, it is recommended to consult with your corporate secretarial service provider in advance to confirm the specific requirements and processes, ensuring the smooth operation of your company.
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  • In short, the British Virgin Islands (BVI) is one of the world’s most renowned offshore jurisdiction. Establishing a BVI company has multiple functions and operations.
  • The establishment of a BVI company can be completed through a simple and fast process through a registered agent. Different types of companies also have their own characteristics and considerations. Therefore, if you have any questions about the registration and operation of a BVI company, please feel free to contact us at any time.

V. What are the ongoing maintenance requirements for a BVI company?

  • Annual fee:
    BVI companies must renew their fees with the local government every year; the annual license fee renewal is based on the date of company establishment. For companies established between January 1 and June 30, the renewal deadline is May 31; for companies established between July 1 and December 31, the renewal deadline is November 30.
  • Accounting record requirements:
    A BVI business company must keep accounting records that are sufficient to show and explain the company’s transactions and will at all times enable the company’s financial position to be determined with reasonable accuracy. Information that needs to be kept includes records and underlying documents of all payments received and disbursed by the company and matters relating to receipts and disbursements, the company and all sales and purchases of goods by the company. The owner of the company is free to decide where to keep records and provides written confirmation of the appropriate address to the registered agent.
  • Submit Annual Return:
    All BVI companies must submit their annual financial return to their registered agent within nine months after the end of each financial year (January 1 – December 31). These returns include a simplified balance sheet and profit and loss statement, which do not require auditing.
    On December 11, 2024, the BVI Financial Services Commission (FSC) published an amendment on its website extending the deadline for the initial annual return submission. Companies are required to submit their first (initial) annual return to their registered agent by September 30, 2024. However, under this amendment, companies are granted a nine-month grace period to comply with the initial annual return submission requirement. This extension period will expire on June 30, 2025.
  • Submission of Registers of Directors and Members
    Starting from January 2, 2025, all BVI Business Companies must file a copy of their Register of Members with the BVI Registrar of Companies. If a company was incorporated before January 2, 2025, it has a six-month grace period, meaning the submission must be completed by July 2, 2025 at the latest. For newly incorporated or continued companies, the initial register of members must be submitted within 30 days of incorporation or continuation. Any changes to the filed register of members must be reported to the Registrar within 30 days. Additionally, the register of members must include all relevant details regarding nominee shareholders, such as the nominator’s name, address, and the dates when the nominee ceased to be a member or when a person ceased to be a nominator.
    The deadline for appointing a company’s first director(s) has been reduced from six months to 15 days after incorporation. The initial register of directors must also be submitted to the Registrar within 15 days of the director’s appointment.
  • Disclosure of Beneficial Ownership Information
    All companies must submit accurate and up-to-date Beneficial Ownership (BO) information to the Registrar of Corporate Affairs (ROCA) within 30 days of incorporation or continuation in the BVI. Additionally, any changes in BO information must be reported within 30 days.
    Registered Agents are responsible for ensuring the accuracy of the information submitted. All BVI entities established before the effective date of the Amendment Act must comply with the revised BO filing requirements within six months.
  • BVI economic substance declaration:
    Economic Substance Requirements (ES Requirements) were introduced by the Economic Substance (Companies and Limited Partnerships) Act in 2018 and came into effect on January 1, 2019 in the British Virgin Islands. This regime applies to legal entities engaged in “relevant activities” during any applicable period and requires compliance with ES Requirements related to those activities.
    The law applies to both existing and newly established entities since January 1, 2019. Similar requirements are now in place in other major zero-tax and low-tax international financial centers. Every BVI company or limited partnership must annually provide ES Requirements details to their registered agent who must provide such details to the International Tax Authority (ITA) of the British Virgin Islands within six months after the end of the relevant reporting period.

Reports are made through the Beneficial Ownership Secure Search System established by the ITA to facilitate secure reporting. The law mandates that entities must comply with ES Requirements when engaged in any of the following “relevant activities”:

  • Fund management business;
  • Insurance business; 
  • Banking business; 
  • Holding business (other than pure equity holding entities that hold equity interests, earn dividends and capital gains without undertaking relevant activities in relation to those interests);
  • Headquarters business;
  • Leasing business;
  • Distribution and service center business;
  • Intellectual property business;
  • Shipping business.

Scope of Economic Substance:

  • Entities and limited partnerships incorporated and/or registered in the British Virgin Islands must comply with the requirements of the Act and demonstrate sufficient economic substance, regardless of whether they are tax residents of the British Virgin Islands, if they engage in one or more “relevant activities” in the British Virgin Islands or abroad.
  • Entities and limited partnership companies (hereinafter referred to as “entities”) must demonstrate that they have taken reasonable measures to comply with the Act and provide reliable classification evidence.

British Virgin Islands Company Registration :
Frequently Asked Questions Q&A

Q1: What compliance requirements must be followed after establishing a company in the British Virgin Islands (BVI)?

  • Since the British Virgin Islands does not impose withholding taxes, it has signed Tax Information Exchange Agreements (TIEA) to ensure transparency and cooperation with other jurisdictions. Under the TIEA, the BVI is required to disclose tax-related information based on the legal requirements of various jurisdictions.

Q2: Can a BVI company be registered with a Chinese name?

  • Yes, a company must have an English name, but a Chinese name can also be added to its Articles of Association. However, the Chinese name must have the same meaning as the English name, and an additional administrative fee is required. In recent years, this has become a popular option for companies from China, Hong Kong, and Taiwan to establish offshore entities.

Q3: Is a BVI company more suitable for investment or trade operations?

  • The British Virgin Islands (BVI) is renowned for its tax policies, as it does not impose corporate tax, estate tax, sales tax, or value-added tax. This makes it a popular choice for international trade and tax optimization. As a British Overseas Territory, the document legalization process through embassies in the BVI is highly convenient, making it an ideal choice for investment holding companies to facilitate reinvestment in various overseas regions.

British Virgin Islands Company Registration:Frequently Asked Questions Q&A

A: Since the British Virgin Islands does not impose withholding taxes, it has signed Tax Information Exchange Agreements (TIEA) to ensure transparency and cooperation with other jurisdictions. Under the TIEA, the BVI is required to disclose tax-related information based on the legal requirements of various jurisdictions.

A: Yes, a company must have an English name, but a Chinese name can also be added to its Articles of Association. However, the Chinese name must have the same meaning as the English name, and an additional administrative fee is required. In recent years, this has become a popular option for companies from China, Hong Kong, and Taiwan to establish offshore entities.

A: The British Virgin Islands (BVI) is renowned for its tax policies, as it does not impose corporate tax, estate tax, sales tax, or value-added tax. This makes it a popular choice for international trade and tax optimization. As a British Overseas Territory, the document legalization process through embassies in the BVI is highly convenient, making it an ideal choice for investment holding companies to facilitate reinvestment in various overseas regions.

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