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British Virgin Islands IBC

€1500 EUR

Incorporation time: 1-2 days

Nominee Director Included Nominee Shareholder Included Secretary Included 

FORMING A BRITISH VIRGIN ISLANDS (BVI) COMPANY


Incorporation time: 2 days

Shelf companies: Yes

Accounting: No

Secretary: No

Nominee Shareholder: Yes

Nominee director: Yes



History of the British Virgin Islands

The British Virgin Islands (BVI), which are located in the West Indies, were discovered by Christopher Columbus in 1493 and captured by the British in 1673. Today they are a British Overseas Territory and although they do not form part of the UK they remain under its authority.


The British Virgin Islands as an Offshore Location

Although the British Virgin Islands offer anonymity and 0% tax companies, they are strongly associated with tax avoidance and evasion. Their relatively poor international reputation may negatively impact their ability to trade in Europe.

There are two types of BVI offshore companies: British Virgin Islands Business Companies (IBCs), the traditional “offshore company”, and British Virgin Islands Ordinary Resident Companies, which are regulated in a manner closer to a European standard.

A BVI IBC is the most popular offshore company form in the world and is equivalent to a European private limited company. IBCs are governed by the International Business Companies Act which provides that the company director must be appointed within 30 days of the company’s creation. There are no nationality or residency requirements for shareholders or directors. There is no minimum share capital requirement but there are Government fees payable on formation. These fees vary depending on the company’s share capital with the minimum being 350 USD for a BVI company with a share capital of 1,100 USD or less. An IBC may not carry out any activity in the British Virgin Islands, except for certain exempt services necessary to its incorporation and administration (accountants’ and lawyers’ fees etc.).

In order to be able to do business directly in the BVI, it is necessary to opt for the British Virgin Islands Ordinary Resident Company which is permitted to trade in the BVI. A BVI company is considered resident in the BVI if most of the directors are based in the BVI and, in such cases, must apply for a trading licence.

British Virgin Islands Summary

The BVI are a popular offshore location and remain an excellent choice for international transactions outside of Europe. Despite being a leading tax haven for more than 30 years, new standards combating offshore companies have been introduced in Europe which focus specifically on this territory and it is now highly inadvisable to use BVI companies to invoice to or from European entities. The BVI is therefore currently re-positioning itself as a tax planning destination for Asian clients.


Types of BVI Companies

Creating a company in the BVI generally takes two days and there is no minimum share capital requirement. The cost is around 1,100 EUR. The BVI offers the following types of companies :

  • IBC / Company limited by shares (the most common type in the BVI)
  • Unlimited company not authorised to issue shares: often used by not-for-profit organisations
  • Limited liability company authorised to issue shares: offering greater flexibility
  • Unlimited liability company authorised to issue shares: considered the most “transparent” BVI entity
  • Unlimited liability company not authorised to issue shares


Detailed Review Of the British Virgin Island’s Economy

The British Virgin Islands are mainly known for their status as a tax haven and their particularly attractive environment for businesses. The location is so advantageous that a KPMG report published in 2000 found that 41% of global companies were registered in the BVI. It is also estimated that 5,000 companies are created there each month. Other important economic sectors in the British Virgin Islands are tourism (50% of the GDP) water sports, fishing, construction, fruit production and rum distillation.

The British Virgin Island’s Economic Strengths:

  • Very favourable offshore tax system.
  • Fast and efficient company registry.
  • Modern telecommunications infrastructure.
  • Flexible financial services legislation.
  • No limit to offshore activity.

The British Virgin Island’s Economic Weaknesses:

  • Relatively poor international reputation
  • Strong association with tax avoidance and evasion
  • Focus of anti-offshore European legislation
  • Not recommended for European clients

Employment Legislation in the British Virgin Islands

Employment legislation in the BVI is almost non-existent. There are no trade unions or minimum wage. In spite of this lack of legislation there are certain employment standards including the fact that employees must be registered with the Social Security Board. The retirement age is set at 65 years, subject to having made 250 weeks’ contributions. Social security contributions are split between 4.5% for employers and 4% for employees.


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