BVI Offshore Guide
The British Virgin Islands is one of the British overseas territories. It is located in the Caribbean, east of Puerto Rico. The main islands are Tortola, (the largest), Virgin Gorda, Avegada and John Van Dyke. Out of the 22,000 total population of the islands, 18,000 live in Tortola. Fifteen islands are known to be inhabited, although there are other more than 50 smaller islands.
Among the offshore service providers, the British Virgin Islands is considered one of the oldest and the well respected. It has set its own standards and best features that other regions try to replicate. IBCs (International Business Companies) or Offshore Companies as they are more popularly known, are the foundations of the offshore financial services sector.
The basic features of an IBC is one private corporation that is free from paying taxes, can be used in any international business undertaking, has no fixed organizational structure, exempted from stringent reporting and record-keeping tasks, and maintains strict confidentiality as provided for by law.
The British Virgin Islands International Business Companies Ordinance was adopted in 1984. This started the rapid growth of the offshore financial service sector, and in no time established its strong image of being a model. The British Virgin Islands registers an average of 5000 new company registrations every month and now has more than 600,000 total incorporations.
The British Virgin Islands Business Companies Act was strengthened and made more responsive to the demands of the 21st century. In January 2005 the new Act removed the distinction between a local company and an offshore company. By local company is meant a company operating in the domestic market while offshore company is restricted only to international business.
The new Act unified the two types of companies into a British Virgin Islands Company. This gave way for more enhanced advantages for both types of companies. Both types can avail of all the advantages and privileges especially on taxes and other benefits. Here are some of the attributes of the British Virgin Islands that makes it a viable haven for many offshore financial sectors:
The official currency of British Virgin Islands is the US dollar which means no currency control and money supply can not be influenced by the local government. As a British territory, it maintains political stability. This image of being a strong country contributes to its attractiveness to financial business providers. So far, the British Virgin Islands had not been involved in any business seam, giving it an excellent international business reputation.
There is a strong collaboration between the legislators and the private sectors. This provides for a healthy environment so as to maintain the momentum of the offshore financial services in the country.
Confidentiality is placed on top priority. This makes the companies feel secure about their confidential company information. Inherently due to the high standard of living, it is not necessary for individuals on the government to sell client information in exchange of financial aid.
The strategic geographical location of the British Virgin Islands makes it accessible by sea and air. In addition, the country has a well-established modern telecommunications infrastructure that backs its offshore financial services industry.