Why BVI is a popular business hub?

There's a reason why about 40% of the world's offshore companies are registered in the British Virgin Islands. It isn't only because BVI is an amazing place to visit, but because it's one of the oldest internationally recognized offshore territories.

Many other offshore jurisdictions based themselves on the BVI's laws before developing their corporate laws. The islands, one of the British Overseas Territories in the Caribbean, offer an important advantage for foreign investors.

Tourism and financial services are the two pillars of the economy. The latter is supported primarily by many offshore companies incorporated there. And secondly. British Virgin Islands enjoys:

• No auditing,
• 0% corporate taxation,
• And no paid-up capital requirements.

Many of the BVI's advantages are common to numerous other jurisdictions English language, absence of currency exchange control since they use the US dollar as their currency enjoy a stable democracy. Hence, over half of its revenue comes from offshore business formation and related services. The BVI is a significant global player in the offshore financial services industry.

The BVI is a member of the International Organization of Securities Commissions (IOSCO) and the Caribbean Financial Action Task Force (CTATF) and continues to remain in good standing with other international financial bodies when it comes to the variety of corporations and trust structures available. The BVI is one of the most diverse financial centers worldwide. New is incorporated in the BVI can be registered under any of these names or suffixes:

• Limited Ltd
• Corporation Corp
• Incorporation Inc

So why is BBI the preferred jurisdiction among many foreign investors?

The short answer to this question lies in its simplicity. Being a member of the British Commonwealth, the BVI has strong ties both with the UK and the EU. The BVI enjoys strong ties with the US Virgin Islands as well as with Puerto Rico. The US dollar is the currency used within the BVI. BVI companies are still comparatively inexpensive to incorporate compared to other premium jurisdictions such as Cayman and Bermuda and most mid-shore such as Hong Kong or Singapore.

Neither the register of directors nor the share register of a company is required to be publicly filed in the BVI. BVI companies are widely used in international capital markets as listing vehicles. Shares in BVI companies are listed on stock exchanges in London. Only one director is necessary, though a president, secretary, and treasurer are not mandatory for a BB IBC. However, a single person or entity may hold all positions.

Closing Thoughts

Over the last 15 years working for Gryffin Capitalist I've seen that BVI offshore company formation gets favored thanks to its cost-effective and simple registration and administrative regulations.

Companies can be incorporated as quickly as one to two days at economical rates. No wonder BVI has become one of the most popular business hubs across the globe.

Peace Out!