The British Virgin Islands is a well-known offshore jurisdiction that has been providing excellent tax planning schemes for a long time. The country boasts benign corporate legislation, a high level of privacy for business owners and beneficiaries, and a stable economic and political situation. All these aspects make it attractive for entrepreneurs who register international companies here to engage in global trade, render consultancy services, use the legal entity as a holding company, or enjoy reliable asset protection. The BVI’s financial sector is highly competitive, which adds to the destination’s appeal. You can launch a business from the BVI extremely quickly by buying a ready-made company, which is an outstanding opportunity not to miss. In this post, we will take a look at the details of the offer.
BVI Company: Benefits for Non-Resident Entrepreneurs
Why opt for a company registered in the British Virgin Islands? Let’s take a look at what you will get if you decide to select this respected jurisdiction:
- Low taxes. It’s no secret that this is the main reason why business people go offshore. In the BVI, your international company will not be liable for corporate income tax. If you don’t derive profit from any local sources (companies or individuals) but work with international partners only, you will be regarded as a foreign company that is under no obligation to pay any taxes or file any accounting reports with BVI authorities. All you will need to pay is the annual state duty.
- Trouble-free company management. There is no need to hold annual meetings of shareholders in the BVI. You can save on audits as they are not required. You have to keep corporate records, of course, but they can be kept anywhere outside the country. The company you set up can be run remotely without ever visiting the country (though it is a tempting idea to move to a wonderful Caribbean resort).
- Soft regulations for company owners. First of all, you will not need to hire a local director (which is a frequent demand in many offshore jurisdictions). Second, you can start with any charter capital you want.
- Business-friendly-climate. The local laws provide incentives to foreign investors and establish transparent rules for property rights transfer.
- Elevated confidentiality standards. The names of company directors and owners never get into the public domain.
A Ready-To-Use Company in the BVI
A ready-to-use, ready-made, or shelf company is a legal entity registered by the local authorities. This means that you can buy it and start operations immediately. It is much faster than forming a company from scratch: you sign a purchase agreement and become a company owner right away!
Let’s take a look at the main features of a shelf company:
- You can choose different types of a ready-made company: Limited Liability Company, Unlimited Liability Company, or International Business Company.
- The purchase deal can be completed in 2 days (sometimes a little more, depending on the circumstances).
- You will buy a company along with a fully operational bank account.
- You will be able to appoint a new company director.
- You are free to increase the charter capital to any figures you think fit.
- You can change the activity your company will engage in.
- The company can be purchased by an individual or a legal entity.
- You will not have to pay capital gains or income taxes when you start your business operations.
- If you hire staff, you will be liable for a payroll tax.
- If you intend to work in the financial sphere, you will need to obtain a license from the Financial Services Committee before you start any operations.
- You will not need to submit any reporting, but the company has to be registered with the local authorities.
Do not hesitate to find out more about shelf companies before you buy one.
Why Purchase a Ready-To-Use Company in the BVI?
Does it make economic sense to buy a shelf company in the BVI? That depends on how critical the advantages below are for you:
- You will be able to start business operations without delay.
- You purchase a company that has a good business history, which means trust on the part of partners and customers.
- You will become an owner of a company that has a good financial reputation, allowing for simplified access to credit services.
- You will not have to jump through administrative hoops as the company has a unique name approved by authorities, and all the documents are in order. All you need is to appoint a new director quickly.
- New company registration involves much more red tape, and purchasing a shelf company will help you avoid it.
Buying a Shelf Company in the BVI: Procedure
Here are the main stages of purchasing a ready-made company in the British Virgin Islands:
- Choosing a company. Think of your requirements for the company, such as business history, availability of a bank account, or age. There are different companies you can choose from.
- Inspecting the company. We do our best to help you avoid risks, so an experienced specialist will examine all the company’s documents, including bank statements.
- Preparing the documents. You will need to provide a copy of your passport and proof of residence address. In some cases, you will also have to get a letter from your bank or lawyer.
- Purchasing. As soon as the buyer pays for the company itself and covers all extra costs, the right of ownership will be assigned to him/her.
- Registering the changes. You will need to register the changes in the ultimate beneficial owners and modifications in the statutory documents with the local authorities.
- Bank account. If you buy a company with a bank account, you will need to make sure it is functional. However, you can also open a new account for the company.
Additional costs may involve the following:
- Equity transfer fee (USD 190)
- Director appointment registration fee (USD 175)
- Due diligence fee (USD 175)
- State license fee (USD 550)
Conclusion
If you need to launch your business quickly in a business-friendly environment with favorable tax rates, the British Virgin Islands are a good choice. Entrepreneurs from across the globe take advantage of relaxed corporate management requirements, high privacy standards, and bulletproof asset protection. Bypass the usual registration processes associated with company registration from scratch by buying a shelf company that will undergo a thorough background check by our experts. The BVI, with its robust financial sector and overall stability, is a prime solution for those who mean business.