Connect with us

Finance

Why Is BVI A Popular Place For Offshore Formations?

Consisting of dozens of islands, the British Virgin Islands (BVI) is a popular place with tourists. It has an abundance of breathtaking views and sandy beaches. The British Virgin Islands is also perfect for foreign investors. Since the ‘British Virgin Islands International Business Companies Ordinance’ was passed in 1984, it has been classified as a tax haven. The tax laws in the BVI are aimed at attracting overseas investors so that they incorporate an International Business Company (IBC) there. So, what makes this jurisdiction an attractive location for foreign investment and why do many people choose to form a company in BVI?

Why Is BVI A Popular Place For Offshore Formations?

No Tax on Profits and Income

Not every tax haven charges a zero rate of tax but this does apply in the British Virgin Islands. A company that has an IBC never has to pay any tax on profits and income. If a company doesn’t want to continue paying a huge tax bill in the country which its head office is in, it should seriously consider having an offshore site in this jurisdiction.

Personal Information cannot be Passed on

Some investors don’t want their personal information to be obtainable by a third party and this will happen in the British Virgin Islands. This is because names of shareholders or directors cannot be obtained. Although details about such senior individuals are provided to the government of the British Virgin Islands when it is being incorporated, it’s never entered onto a public record. Therefore, it is impossible to find out personal data such as this.

Other Tax Benefits

Along with income and profits, tax also doesn’t have to be paid on capital gains, dividends, compensation and death duties. In other countries, a high rate of tax for these forms of income might apply but a BVI IBC never has to pay anything.

Bookkeeping isn’t necessary

Although a company can maintain accounting records, such information doesn’t have to be submitted to the British Virgin Islands government. This is because an offshore site in this jurisdiction is never audited. As it can cost a lot of money to audit a company, as well as prepare it for an annual inspection, such expenditures don’t accrue.
Not as many senior employees have to be hired
When incorporating a company in particular European countries, several directors and shareholders might have to be in place. However, when the decision has been taken to form a company in BVI, the same person who is a director can also act as the only shareholder. Furthermore, a secretary isn’t required for an IBC in this jurisdiction. As a result, an IBC can be formed quicker because a director doesn’t have to search for people that could hold this role.
Bvi.offshoreformations247.com is a specialist offshore formation agent offering advice and guidance on forming a bvi offshore company.

Continue Reading

Recent Posts

Business3 days ago

The Invisible Hands: Unveiling How Food Distributors Influence the Quality of Our Foods

Ever found yourself wondering why the tomatoes in your salad taste particularly fresh or why your preferred brand of coffee...

Marketing3 days ago

Webflow CMS: A Comprehensive Guide

Webflow is a powerful tool that allows you to create and manage dynamic websites without needing to code. It’s a...

Business3 days ago

The Three Most Important Benefits You Should Offer To Your Employees

Offering your employees a range of benefits on top of regular salary increases will really help to show that you...

Business3 weeks ago

Business Tips For Protecting Your Finances During A Recession

In 2024, taking the necessary steps to protect your finances for your business is now more important than ever. The...

Green & Energy1 month ago

Air Conditioning Installation: What You Need to Know

When it comes to getting an air conditioning unit installed, can significantly improve your comfort and home environment, especially during...

Marketing1 month ago

Marketing Tips For A Gym Wear Brand

When starting a gym wear brand, there are a few things you need to do and one of them is...

General2 months ago

Social Media Marketing: What Are All The Types?

Social media marketing is a tool that is a must-have in today’s digital age. it’s very rare that businesses can...

Business2 months ago

How To Become A Property Developer

There are several reasons why an individual will want to become a property developer. One of the main reasons for...

Business2 months ago

Remote Delivery Innovations: Case Studies from Leading E-commerce Brands

People have gone through much change in the past few years when it comes to online shopping. Nowadays, when delivery...

Business3 months ago

Why are Brits turning to online-only banks?

For years, large, conventional banks held all the aces when it comes to citizens’ finances in the UK. HSBC, Lloyds...

5 Important Web Design Considerations to Make For Better SEO 5 Important Web Design Considerations to Make For Better SEO
Tech3 months ago

5 Important Web Design Considerations to Make For Better SEO

Ever since the birth of search engines, practices in optimising websites for better search rankings have changed considerably. Where it...

SEO4 months ago

The Importance of Local SEO for Small Businesses

There are many different types of businesses and all of them will require online marketing however, with a small business,...

General4 months ago

Understanding The Unsung Heroes: Cool Rooms And The Importance Of Regular Repairs

Everybody loves a breath of fresh air when entering a superstore! But have you ever wondered who’s working backstage to...

Home Improvement7 months ago

How To Add More Value To Your Home

If you have some spare cash in the bank, it is likely you would like to spend it on your...

Lifestyle7 months ago

What is a Deep Plane Facelift

Cosmetic surgery is a choice that needs a lot of research and when it comes to thinking about a facelift...

Categories

Archives

Trending