BVI TAX SHELTER
British Virgin Islands tax haven. Advantages of forming a company in the British Virgin Islands Tax Haven
KGN Services specializes in BVI business registration and bank account opening.
About the British Virgin Islands Tax Haven
The British Virgin Islands, or BVI for short, is a group of fifty islands in the Caribbean that form a British overseas territory. The main islands within this group are Tortola, Virgin Gorda, Anegada and Jost Van Dyke. They have been independent from Great Britain since 1967. While the official name is the Virgin Islands, they are usually called the British Virgin Islands to distinguish them from the nearby US Virgin Islands.
Their economy is currently focused on financial services and tourism. Financial services is by far the most important sector economically, with over 50% of the territory’s income coming from license fees paid to the government by offshore companies. Since the 1960s, the British Virgin Islands has become one of the most important players in the offshore financial industry, with more than 45% of all offshore companies incorporated in the BVI. Its favorable tax laws as well as high degree of privacy regarding financial transactions have made the BVI one of the most important so-called “tax havens”.
Why are the British Virgin Islands considered a tax haven?
A tax haven is – according to the OECD – a jurisdiction that seeks to make itself attractive to companies and business owners seeking more favorable tax treatments than those available in their country of origin or country of residence. As such, a tax shelter provides favorable conditions under which either new companies can be established or offshore units of already existing companies can be established.
The “British Virgin Islands tax haven” has emerged through the creation of a very simple set of corporate tax rules that offer a highly advantageous tax system. The British Virgin Islands have no capital gains tax, gift tax, sales tax, value added tax, capital gains tax, inheritance tax or corporation tax. Salaries paid to employees employed by an offshore company established in the BVI tax haven are taxed at 8% for the employee, the remaining percentage up to 12% or 14% for the employer for any salary over $12,000.
The relative simplicity of these tax rules, together with the low tax rates, explains why the British Virgin Islands have become one of the most popular locations for off-shore establishment of companies. The BVI tax haven also offers another important benefit – relative privacy of details regarding financial transactions as well as corporate entities. This allows companies to configure their own corporate structure without harmful interference or the risk of competitors gaining access to unnecessary information.
Advantages of forming a company in the British Virgin Islands
Forming a company in a tax haven in the British Virgin Islands means creating a so-called British Virgin Islands Business Company or BVI BC. These are the most popular form of off-shore companies in the world. They are available to residents of any country in the world and can be formed as a continuation of another company in another part of the world. There are many benefits to a BVI BC:
- 0% corporation tax
- 0% capital gains tax
- 0% profit tax
- 0% gift tax
- 0% VAT / VAT
- 0% inheritance tax
- No stamp duty except for land transactions in the British Virgin Islands itself
- No restrictions to do business anywhere in the world
- Option to transfer and take money home without fees
- No currency exchange fees or restrictions
- No need to disclose company directors, managers, owners or shareholders
The British Virgin Islands tax haven is backed by a politically stable government with a long history of providing a beneficial offshore environment for businesses. The BVI has never been blacklisted by the OECD and, due to its long history, is also a well-known location for offshore companies. This means that external entities such as banks are well acquainted with the British Virgin Islands tax haven incorporation and registration documents and structures. The British Virgin Islands tax shelter legal system is also based on English common law, making it familiar and familiar to both in-house legal and administrative teams as well as external corporate lawyers. However, the BVI is a completely independent legal entity and their heavy reliance on the financial sector means that any new laws that are made are created in consultation with the financial sector.
The British Virgin Islands tax haven also has no double taxation agreements with other countries except Japan and Switzerland. This is an important feature as it means that BVI is not required to disclose or share any information about the income, profits or other transactions of any BVI BC, directors, shareholders or beneficial owners. This is partly because the BVI has maintained a high standard of living and has never needed to enter into such agreements to secure aid or access to goods and services from other countries.
Another important advantage of the British Virgin Islands tax haven is that the US dollar is the official currency. This greatly simplifies the reporting and management of business finances for an off-shore registered in the BVI – whether it is a subsidiary of a company elsewhere or a company fully registered in the BVI. As English is the official language, an incorporation procedure in the British Virgin Islands will be conducted solely in a familiar language without the need for expensive translations of forms and/or official documents.
Who Can Benefit From Business Formation in the British Virgin Islands?
Almost any company or person involved in international business can benefit from a BVI BC. This is illustrated by the fact that the majority of off-shore registrations take place in the tax haven of the British Virgin Islands. The British Virgin Islands tax light’s advantageous and simple tax and regulatory structures allow for both efficient and cost-effective registration as well as ongoing administration.
A British Virgin Islands incorporation is particularly beneficial for those seeking to have a highly confidential and private business setup – perhaps in the context of potential interests in the company’s accounts from competitors or other agencies. The unique flexibility offered by incorporating BVI BCs means that companies with highly specialized requirements for their structuring from both an administrative and financial perspective can easily set up the type of corporate structure they need.
The fact that the British Virgin Islands are well connected to all other areas of the world both through transport, shipping and air as well as financial services combined with a reputation for being a well managed tax haven and recognition as one of the oldest and most prosperous -known tax havens in world means that it is particularly suitable for those who offer services and products in unstable or remote parts of the world and need a reliable base for their financial operations.
Incorporating in the BVI tax haven can also greatly benefit high net worth individuals seeking to establish a home for their personal businesses as it allows them to flexibly manage both their current assets as well as potential future property. The lack of inheritance tax and the ability to appoint a small number or even just one director means that they can protect their family wealth from both excessive taxation and outside influence.
Conclusion
There are a number of benefits to incorporating a BVI BC in the British Virgin Islands tax haven. The British Virgin Islands tax haven offers a well-regarded place of incorporation for any international subsidiary or as part of a tax planning effort by anyone with a high degree of international business connections. In addition to offering zero taxation, BVI BCs also ensure secrecy and flexibility for owners and managers of such companies, as well as cost-effective and simple registration and administrative provisions. As such, BVI BCs are understandably one of the most popular off-shore vehicles in the world.
BVI Company Formation Awards
BVI Company Formation Package includes:
- Check company name
- Initial business approval
- Preparation of application documents
- Company registration fee
- Registered office address for 1 year
- Registered agent service for 1 year
- State application fee
- Certificate of Incorporation
- Memorandum & articles of association
- Minutes from the first meeting with the appointment of director(s)
- Share certificate(s)
- Register of shareholders
- Register of directors
From: $690
Why choose KGN Services?
We have been helping business owners since 1996
Incorporating your company is our focus
We make a complex process quick and easy
We work closely with business registries to guarantee our service
Fastest Offshore Companies and Accounts – Most Competitive Rates Worldwide
British Virgin Islands tax haven services
KGN Services provides the following services in the British Virgin Islands Tax Haven:
- BVI BC Formation
- Registered office and agent services
- BVI Company Secretaries Services
- Nominated shareholder / Nominated director
- Opening a bank account in the British Virgin Islands
- Full BVI BC Administration Services
- Postal address in the British Virgin Islands
- Virtual office in Belize
- Trademark registration
- Yacht registration
British Virgin Islands – General Information
Location: Caribbean, between the Caribbean Sea and the North Atlantic, east of Puerto Rico.
Area: total: 151 sq km, land: 151 sq km, water: 0 sq km, consisting of 16 inhabited and more than 20 uninhabited islands; includes the islands of Tortola, Anegada, Virgin Gorda, Jost van Dyke. …
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Natural resources : Petroleum, fish, natural gas.
Population: 35,015 (July 2017 estimate).
Capital: Vejby 15,000 (2018).
Time zone: UTC−4.
Language: English (official).
Government type: Parliamentary democracy (House of Assembly); self-governing overseas territory of Great Britain.
Legal system : English common law.
International organization participation : Caricom (associate), CDB, Interpol (sub-agency), IOC, OECS, UNESCO (associate), UPU.
Economy : One of the most stable and prosperous in the Caribbean, the BØ economy relies heavily on tourism, which is estimated to generate 45% of national income. Due to traditionally close relations with the US Virgin Islands, the British Virgin Islands has used the US dollar as its currency since 1959. Livestock breeding is the main agricultural activity; poor soil limits the islands’ ability to meet domestic food needs.
In the mid-1980s, the government began offering offshore registration to companies wishing to incorporate in the islands, and incorporation fees now generate significant revenue. The passage of a comprehensive Insurance Act in late 1994, which provides a blanket of privacy with regulated statutory gateways for the investigation of criminal offences, made the BVI even more attractive to international business.
Currency: US dollar.
KGN Services | British Virgin Islands tax haven
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