What You Need To Know To Set Up Your Own BVI Company?
The British Virgin Islands (BVI) have been synonymous with offshore company setups for the past three decades. If you are looking for British Virgin Islands company formation, here is what you need to consider. Cost Of Incorporation And Annual Renewal Companies setting up in the BVI save on annual reporting and tax filing requirements, though they will have to pay an annual fee to keep the company in good standing. Effective from 1 Jan 2018, the government fees to incorporate and maintain an IBC issuing less than 50,000 shares has been increased from US$350 to US$450 per annum. In addition, due to the non-requirements for a resident director and company secretary, BVI IBCs are very cost effective when clients are looking for a company to hold their assets or operate as a business entity for trading or investment and investment holding purposes. Reputation On The Rise The BVI’s commitment to IBC’s confidentiality is a double-edged sword – where once upon a time, the secrecy available to IBC formations have led to individuals and companies utilising BVI IBCs for tax evasion and avoidance, and illegal transfer purposes. Today, regulators in the BVI have been working hard to restore their reputation, especially after the Panama Papers leak. This has been accomplished through a series of anti-money laundering regulations and amendments, with the most recent amendment passed on 1 April 2018. The BVI’s recent OECD ratings have improved over the past decade. It was once deemed noncompliant, but recent records from April 2018 indicate that the BVI is ‘largely compliant’ with requirements for exchange of information on request. Conclusion The banks in the BVI also now have strict know-your-customer (KYC) requirements, where personal visit and face to face meetings are often necessary to open bank accounts for IBCs.