Situated in the Caribbean, about 60 miles east of Puerto Rico, the British Virgin Islands (BVI) have been an Overseas Territory of the United Kingdom since 1672. They are today an internally self-governing dependency with a ministerial system of Government adopted in 1967.
The British Virgin Islands have, over the years, become one of the fastest growing international centres for business and finance activities. With British Law and flag, legal tender of US currency, stable politics, no currency exchange regulations and the lowest crime rate in this part of the world the BVI ranks amongst the most attractive locations for foreign investors. Apart from a large number of trusts, more than 700,000 companies have been registered in the BVI over the years, which allow the Territory to qualify as one of the most important offshore corporate centres in the world.
Many international firms and private investors have taken advantage of the islands’ attractive economic climate and their well-developed telecommunication facilities, making them easily accessible from any place in the world. Additionally, the British Virgin Islands have not appeared on the FATF Black List, because of the vigilance and constant efforts by the Government and the Financial Services Commission.
In 2004 the BVI Business Companies Act was enacted and came into law on 1 January, 2005. Companies previously existing under the International Business Companies Act, which had not voluntarily re-registered under the new Act, were automatically re-registered on 1 January, 2007. Companies incorporated under the Companies Act Cap. 285 which are not re-registered prior to that date will be automatically registered on 1 January, 2008.
The main purpose of the new Act is to ensure that only one type of company is in existence in the BVI. This company will not be subject to any tax irrespective of the source of income, i.e. not only foreign, but also local assets and income are tax free. The only existing tax for companies is a payroll tax which is applicable for those companies having employees within the Territory.
Another important change is the concept of authorized capital. A company no longer needs to state in its Memorandum of Association an authorized capital. Reference is only made to the maximum number of shares authorized to be issued. |
