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The British Virgin Islands (BVI)
are a group of 46 islands in the Caribbean of which only
11 are inhabited. BVI is located approximately 60 miles
east of Puerto Rico. The largest island is Tortola, where
the Capital, Road Town, is located. The British Virgin Islands
are a British Overseas Territory, which offers all the security
and stability traditionally associated with the British
flag.
The territory is responsible
for its own internal self-government and is governed by
a democratically elected Parliament and a Cabinet. BVI has
an independent legal and judicial system based on English
Common Law with
a right of final appeal to the Privy Council in London.
The United Kingdom is responsible for the territory’s external
affairs, defense, internal security and the courts. The
British Virgin Islands have become the only Caribbean Overseas
Territory to which the British Government has devolved responsibility
for developing and managing its
own financial services industry. Policies and legislation
have been developed in close partnership with the private
sector to ensure that they meet the needs of the financial
community. The government has created an environment that
is highly attractive to private enterprise through this
partnership. The integrity of the jurisdiction established
by the government provides sophisticated and efficient supervision
and regulation.
Since the adoption of its pioneering
International Business Companies (IBC) legislation in 1984,
the BVI has become a high quality international financial
center. The government is actively encouraging the development
of its offshore finance business and has upgraded the Companies
Registry by installing state of the art technology. Some
of the characteristics of the IBC are documented below:
Taxation
An IBC is exempt from taxes provided it does not carry on
business with persons resident in the BVI, own real estate
in the BVI, or accept either banking deposits or contracts
of insurance. Interest, dividends, rents royalties, and
compensation paid by an IBC to persons who are not residents
in the BVI are exempt from taxes. Also, capital gains realized
by non-residents with respect to any shares are exempt.
There is VAT tax.
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Shareholders
A minimum of one shareholder is required and either registered
or bearer shares may be issued. No details of the shareholders
appear on the public file but a register of shareholders
must be kept at the registered office address of the company.
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Directors
A minimum of one director is required. The director does
not need to be a shareholder. In addition, corporate and
non-resident directors are permitted. Details of the directors
are not required to appear on the public file.
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Reporting
Requirements
An IBC is not required to file any financial reports or
tax returns in the BVI. In addition, the books and records
may be maintained in any manner desired and in any part
of the world.
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Restrictions
On Name And Activity
Names must end with one of the following words, or abbreviations
thereof- Limited, Corporation, Incorporated, Societe Anonyme
or Sociedad Anonima. The following words, and their associated
activities, cannot be used: Assurance, Bank, Building Society,
Chamber of Commerce, Chartered, Cooperative, Imperial, Insurance,
Municipal, Royal and Trust.
An IBC may not carry on business
with persons resident in the BVI, nor own real estate in
the referred jurisdiction, or provide registered offices
for companies.
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Local
Requirements
The local company law requires that an IBC maintain a registered
office address within BVI and must also appoint a BVI resident
as registered agent.
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Secrecy
There are no specific statutory provisions governing secrecy
in relation to companies.
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Tax
Treaties
There are no double-taxation treaties with the United States.
There are double taxation agreements with Japan and Switzerland.
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Professional
Services
There are several accounting firms and law firms of international
standing.
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GUARDIAN
FINANCIAL SERVICES, INC.
6621 E. Pacific Coast Highway Suite 260
Long Beach, Ca 90803
(562) 431.1140- Fax: (562)684.4634
info@guardianfinance.com
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