Skip to content
British Virgin Islands

Steps to Set Up a Company:

British Virgin Islands

Choose a Business Structure

  1. Business Company (BC): The most common and flexible type of company used for offshore purposes in the BVI. It offers limited liability and can be used for a variety of business activities.

Benefits of Setting Up an Offshore Company in the BVI

  • Tax Neutrality: No corporate taxes, capital gains taxes, inheritance taxes, gift taxes, or sales taxes.
  • Confidentiality: Shareholder and director details are not publicly disclosed.
  • Flexibility: No requirement for local directors or shareholders; minimal accounting and reporting requirements.
  • Stability: A politically stable jurisdiction with a well-established legal system based on English common law.

Steps to Set Up a BVI Business Company (BC)

  1. Choose a Registered Agent: All BVI companies must have a registered agent located in the BVI. The agent will assist with the incorporation process.

  2. Choose a Company Name: Ensure it is unique and follows naming regulations.

    • The name must end with a suffix such as "Limited," "Corporation," "Incorporated," "Society Anonyme," or abbreviations such as "Ltd," "Corp," "Inc," or "S.A."
    • The name must not be identical or similar to an existing BVI company.

  3. Prepare the Memorandum and Articles of Association: These documents outline the company's structure, purpose, and regulations.

  4. Submit Incorporation Documents to the Registered Agent: Provide the registered agent with the Memorandum and Articles of Association, the company name, and the details of the shareholders and directors.

  5. Pay the Incorporation Fees: The registered agent will submit the documents to the BVI Financial Services Commission (FSC) along with the required fees.

  6. Obtain the Certificate of Incorporation: Upon approval, the FSC will issue the Certificate of Incorporation, confirming the company's legal existence.

Post-Incorporation Requirements

  1. Appoint Directors and Shareholders: Officially appoint the directors and shareholders as per the company's Articles of Association.

  2. Issue Share Certificates: Issue share certificates to the shareholders.

  3. Maintain a Registered Office and Agent: The company must maintain a registered office and agent in the BVI.

  4. Keep Company Records: Maintain accurate records of directors, shareholders, and financial transactions. These records can be kept anywhere in the world.

  5. Annual Renewal: Pay the annual renewal fee to the FSC through the registered agent to keep the company in good standing.

Post-Incorporation Requirements

  1. Appoint Directors and Shareholders: Officially appoint the directors and shareholders as per the company's Articles of Association.

  2. Issue Share Certificates: Issue share certificates to the shareholders.

  3. Maintain a Registered Office and Agent: The company must maintain a registered office and agent in the BVI.

  4. Keep Company Records: Maintain accurate records of directors, shareholders, and financial transactions. These records can be kept anywhere in the world.

  5. Annual Renewal: Pay the annual renewal fee to the FSC through the registered agent to keep the company in good standing.

Accounting and Reporting

  1. No Mandatory Financial Reporting: BVI companies are not required to file financial statements or annual returns with the FSC. However, they must keep financial records to reflect their financial position.

  2. Economic Substance Requirements: Depending on the nature of the business, the company may need to meet economic substance requirements in the BVI. This typically applies to companies engaged in specific activities such as banking, insurance, fund management, finance, leasing, headquarters, shipping, holding company activities, intellectual property, and distribution and service centres.

Laws and Regulations to Consider

  1. BVI Business Companies Act, 2004: Governs the formation, operation, and dissolution of BVI Business Companies.
  2. BVI Economic Substance (Companies and Limited Partnerships) Act, 2018: Governs the economic substance requirements for BVI companies.

When to Consider Setting Up an Offshore Company in the BVI:

  1. Tax Benefits: No corporate or personal income taxes.
  2. Confidentiality: High level of privacy for company owners.
  3. Flexibility: Suitable for a wide range of business activities.
  4. Asset Protection: Strong legal framework for asset protection.
  5. Ease of Management: Minimal administrative requirements.
  6. International Business: Ideal for holding companies, trading companies, and investment companies.

By considering these factors and aligning them with your business goals, you can determine if setting up an offshore company in the BVI is the right move for your organization.

DALL·E 2024-07-08 12.02.10 - An illustration promoting Grant and Grahams global support for setting up companies. The image features a globe with various business icons around it
How to Set Up a Company

Step-by-Step Guide: How to set up a Company

Setting up a company involves a series of crucial steps that require careful planning and execution. From choosing the right business structure to understanding legal and tax obligations, each stage is vital to the successful launch and operation of your business. This step-by-step guide provides a comprehensive overview of the key processes involved in establishing a company, ensuring you have the knowledge and tools needed to navigate the complexities of business formation.