|Do you wish to set up an offshore company? Owing to its business-friendly policies, strong infrastructure, quick and smooth incorporation process, and more, the British Virgin Island is a popular country to set up your offshore company in. In this article, we provide a step-by-step guide to set up a BVI company.
Advantages of setting up business in BVI:
- There is a stable political and economic environment in the British Virgin Islands. This reduces the risks faced by the businesses.
- With exemption from corporate tax, capital gain tax, and more, the BVI is a country with business-friendly policies. In fact, the British Virgin Islands has a ranking of 1st out of 70 countries in the Corporate Tax Haven Index 2021.
- Besides this, businesses are required to meet fewer compliance requirements. For example: businesses do not need to prepare financial statements, have their books audited, and more.
- Even though businesses are required to disclose the personal information of the directors, shareholders, and unique beneficial owners (UBOs), this information is not shared with the public, guaranteeing high levels of privacy.
How to complete the BVI company registration process?
In order to register company in BVI, you must first understand the steps that need to be undertaken by your business. It is necessary for you to understand these steps to ensure a smooth and hassle-free process. The steps to incorporate your business are the following:
Step 1: Planning and Strategising
- Before you begin the incorporation process for your business in the British Virgin Islands, you must first decide on a suitable legal entity for your business.
- There are multiple types of legal entities available in the British Virgin Islands including the following:
- International Business Company
- Company limited by shares
- Company limited by guarantee and allowed to issue shares
- Company limited by guarantee and not allowed to issue shares
- Unlimited company allowed to issue shares
- Unlimited company not allowed to issue shares
- Restricted Purpose Company
- Segregated Portfolio Company
- Tetra Consultants will recommend a suitable legal entity for you on the basis of your business activities, requirements, and long-term goals.
- We will also advise you on the different requirements of your chosen business entity including the minimum number of shareholders and directors, minimum paid-up share capital, and more.
Step 2: Reserve your preferred business name:
- Our team of experts at Tetra Consultants will check to see if your preferred business name is available and reserve the same with the British Virgin Islands business registry.
- Prior to this, we will ensure that you are compliant with the government regulations by ensuring your BVI company name ends with an appropriate suffix, depending on your chosen business entity.
- The business name can be reserved for up to 90 days.
Step 3: Meeting all the pre-registration requirements
- Even though there is no need for a resident director, the business must still have a local registered agent. Tetra Consultants will assist you in finding and appointing a local agent.
- You must also have a local registered office address and our team at Tetra Consultants will help you in finding one.
Step 4: Opening a corporate bank account
- Our banking team at Tetra Consultants will assist you in preparing the required documents.
- We will then leverage our extensive banking network to open a corporate bank account at a reputable bank in the BVI.
- You must deposit the minimum paid-up share capital decided by you into your bank account.
- Once your corporate bank account is opened, Tetra Consultants will collect the banking documents, internet banking tokens, and access codes on your behalf and courier them to your preferred address.
Step 5: Preparing the required documents
- Tetra Consultants will proceed to prepare all the documents required during registration. Some of the documents include:
- Articles of Association
- Business plan
- Personal information of the directors, shareholders, and unique beneficial owners (UBOs)
- Power of Attorney
- Personal information of the local registered agent
- Other incorporation documents
- Once the documents are prepared, we will get them notarised on your behalf.
Step 6: Registering your business
- Once the above step is completed, we will submit the documents to the BVI companies registry for approval.
- Once the approval is received, we will receive the Certificate of Incorporation, Articles of Association, Memorandum of Association, and other incorporation documents and courier them to your preferred office address.
Step 7: Applying for Business Licenses
- In order to conduct certain business activities, you need to apply for some business licenses with the BVI Financial Services Commission.
- Tetra Consultants will advise you on the licenses you are required to have to start your business operations and assist you in applying for the same.
Step 8: Registering for Tax
- Tetra Consultants will proceed to register your business for tax with the BVI International Tax Authority (ITA) to obtain the tax registration certificate.
- Even though businesses in BVI are exempted from corporate income tax, withholding tax, and more, they are still subjected to a Payroll Tax, Property Tax, and Stamp Duty Tax.
Step 9: Staying Compliant with government regulations
- After the registration process is completed, your business can start its operations in BVI. However, you are required to remain compliant with the government regulations.
- Therefore, Tetra Consultants will ensure that your business remains compliant with the government regulations.
Now that we have understood how to set up your business in the British Virgin Islands, it is imperative that you know the timeline and the cost for this. The registration of your business will be completed within 1 week of engagement and receipt of the documents we will require. After this, the opening of the corporate bank account will be completed within 4 weeks. All in all, the entire process should be completed within 1 week upon engagement and your business can become operational.
Throughout the registration process, you will not be required to travel to the British Virgin Islands for any of the steps. This is true for the opening of a corporate bank account as well. However, if you are required to travel to the BVI to open your bank account, a representative of Tetra Consultants will attend the bank meeting with you. If you do not wish to travel to BVI, our team will request the bank for an online meeting instead.
The total engagement fee that you will be charged depends on the services you require from us, your chosen business entity, business activity, and more. This total engagement fee includes the government fees that need to be paid during the registration process. We will discuss the cost in more detail before we begin the set up process of your business in BVI.
With Tetra Consultants by your side, you can focus your time and energy on conducting your business while leaving the registration of your business to us. We offer our clients a comprehensive service package that includes the following:
- Planning and Strategising with our clients to choose a suitable legal entity
- Registering your business with the BVI Company registry
- Opening a corporate bank account with a reputable bank
- Ensuring the business’s compliance with government regulations.
Contact us now for more information on the BVI company registration process and our dedicated and experienced team will revert within the next 24 hours.