Many people establish an offshore company, also known as International Business Corporation or IBC, for international trade, asset protection and wealth management. An IBC is usually set up in tax-free zones such as the Cayman Islands, British Virgin Islands (BVI), etc.
British Virgin Islands (BVI) often referred to as a tax haven jurisdiction’ is one of the most favoured places for forming an offshore company. Welcoming and favourable business laws make it a sound choice for offshore investment.
Many Expert agencies provide services for the formation of bvi company singapore.
Some of the important benefits of offshore companies in BVI are:
Flexible Corporate Policies
Company law in the BVI provides maximum flexibility with common law legal frameworks.
The BVI has no income tax, corporation tax, capital gains tax, or similar financial laws. Usually, a BVI company is used as a mediator holding company to make tax-neutral layers in the corporate holding structure.
Easy process of Registration
The registration of a BVI company with no business action costs very less, an insignificant amount to a business owner. The procedure of which can be finished by a business service agency, without the requirement for the applicant to visit the island in person.
A high level of confidentiality is one of the key benefits of the BVI’s IBC. Unless requested by the court, by relevant authorities or under a mutual legal agreement, the information and data relating to the company will not be disclosed to anyone.
Some other benefits are:
- No mandatory annual audit
- No mandatory accounting requirements
- Low maintenance cost
- The only company records made accessible to the public are the Certificate of Incorporation (CAA) and the Memorandum and Articles of Association (M&AA).
The BVI Business Companies Act authorize the formation of following kinds of business
- Companies that are restricted by shares.
- Companies that are restricted by guarantee stating the company cannot issue shares.
- Companies that are restricted by guarantee and can also issue shares.
The Cost Involved In The Formation Of BVI Company
The BVI company formation costs comprise the government fees, formation fee and agent/office fee, document shipping, etc. Most of the time an overall package is offered known as the BVI offshore company incorporation package which is inclusive of:
- Professional fees
- Official Certificate of Incorporation
- Government licence fee
- Share certificates, common seal, Memorandum and Articles of Association (MAA)
- Mandatory provision of a Registered Office in the BVI
The Time Required For The Setup Of BVI Offshore Company
The entire process usually takes somewhere around three to four weeks.
Step Involved In The Incorporation Of BVI Company
There are several steps involved in the BVI company incorporation process which are as follows:
- Reserving the company name
- Appointing a registered agent
- Opening a bank account
- Submitting all relevant documents
Thus, for the above mentioned reasons, BVI is one of the most preferred places to form an offshore company.