How to Open a Legal Company in The British Virgin Islands? The process of company registration in BVI (British Virgin Islands) is decidedly simple and only consists of three steps. The first step is the submission of the incorporation order form. During this process, the applicant will have to clarify if the company’s name is eligible to be considered for incorporation (it’s ineligible if it’s already taken) and prepare the required documents that will be submitted. The second step involves dealing with possible setbacks, finalizing paperwork, and ironing out any legal, corporate, or logistical issues that might arise. The third step is the actual incorporation of the business. After this, the company can start operating normally. A newly registered entity can open a corporate bank account to simplify the process of payments.
How Long Will It Take to Register a Company in BVI?
The company registration can take up to one week. This may differ for a single business entity versus the incorporation of a corporation, which will likely take longer. Obviously, there are many possible hurdles and delays that might occur, which will prevent a business from being properly registered in the British Virgin Islands within the above-mentioned time frame, therefore be sure to seek the advice of a professional company that deals with company registration to ensure that the process is completed as speedily as possible. It’s also advisable to prepare a sum exceeding $1.200 (on average, it’s the full cost of company incorporation, including taxes and paperwork) before commencing the process.
What Organizational / Legal Things to Consider Before Even Starting a Company In BVI?
Before registering a company in BVI, it’s very important to be well-prepared. Although the British Virgin Islands is well-known for the ease of company incorporation, this shouldn’t blind an aspiring entrepreneur to the other legal and organizational things that need to be taken into account. The first thing that you need to pay attention to is the type of business entity that will be used for the registration. For instance, if the business is formed as a Hybrid Company, it will be limited by guarantee but not by the ability to issue shares. Additionally, there exist several requirements for a company to be registered in BVI, including a minimum amount of capital of $50,000, a filed and approved business plan, as well several other things.
Why Is It So Easy to Start a Company In BVI?
Firstly, BVI has a great track record when it comes to business development. The two main pillars of this country’s economy are financial services and tourism. With the development of these sectors, BVI has gained popularity as a place to form new businesses. At least 52% of BVI’s revenue comes from off-shore businesses that picked this island nation as their base of operations. It’s a win-win situation: the government generates revenue from foreign business activity, while business profits from operating in a more favorable jurisdiction that always finds new ways to make their work more efficient. It’s so no big secret that BVI has some of the friendliest legal and regulatory environments to establish a business in. In fact, recently, a reputable USA-based publication ranked BVI as the easiest place to start a business in the world. In comparison to similar offshore jurisdictions, BVI offers a clear advantage when it comes to the numerous easy-to-access benefits for foreign companies and investors.
Why Do People Choose BVI For Company Formation?
Simply put, the BVI is quite a popular offshore financial center, which provides world-class infrastructure and an array of tax and government-specific advantages for the business community. People choose BVI because it’s one of the best options out there. What makes it one of the best options out there? Down below, you’ll see elaborated information on key aspects that make BVI the best place to register a company.
Key Advantages of BVI Company Registration
BVI has numerous advantages when it comes to company formation. Most of these advantages will make your business formation and incorporation process simple and cost-effective as you will be able to start generating revenue and improving your efficiency right away. The advantages include:
· Efficiency. BVI offers an extremely efficient legal and corporate framework.
· Flexibility. This country’s economy and fiscal policies can easily adapt to different situations.
· Low capitalization requirements. BVI has relaxed the requirements and it yielded great results.
· Access to an open market. Investors have a multitude of options when it comes to which projects to invest in.
· Lax taxation policies. There’s no income tax or wealth tax or any tax on capital gains.
· Low costs of running and establishing businesses. Compared to other jurisdictions, BVI companies are more affordable.
· Quick company establishment. It’s possible to form a company on the same day you contact a business registration company.
· High level of confidentiality. There’s almost no information regarding shareholders and/or directors of a company in the public domain.
The list of positives could go on forever, but the main reason for choosing BVI company formation over other offshore jurisdictions is the simple fact that it has proven itself to be the best option out there based on profits generated by existing businesses.