British Virgin Islands
The British Virgin Islands are made up approx. sixty islands. They are located in the eastern part of the Caribbean Sea, approx. 100 km east from Puerto Rico. They are a dependent overseas territory of Great Britain. However, the British government is responsible only for external affairs; the internal affairs are in the full competence of the Legislative Assembly. The official language is English; the official national currency is American dollar. The legal system is based on English law. The basic act covering companies is the International Business Companies Act 1984. Thanks to flexible legislation it is not only possible to register companies but also trusts, banks, insurance companies and foundations, making the British Virgin Islands one of the most popular tax havens.
The commonest type of company is the International Business Company (IBC). This company is free from tax liability on its income from activities executed outside the Islands, income from dividends, interests, rents, license fees, capital profits from securities. No local tax liability is connected to it, including the succession duty, accession tax, real-estate tax, stamp duty, customs, etc. The IBC company only pays a yearly lump sum fee. No reports or tax declarations are required for the authorities. The shareholders and the executives can hold meetings in any country, or they can be represented by a proxy. Last but not least, full discretion and anonymity is ensured.
On the other hand, the company may not own shares in real-estate on the British Virgin Islands, with the exception of operational unit rental, by means of which it communicates with the members or maintains records about the company; it may not operate as a bank, insurance company or trust, unless it has a relevant license; it may not provide paid services of company management, unless it has a relevant license for that; nor may it provide registered address and registered agent services for companies established on the British Virgin Islands.
Suitable conditions for international transactions:
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Legal form
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IBC
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Time needed for establishment of a company
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2 days
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Registry of executives / shareholders
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Not accessible to public
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Basic capital / minimum paid capital
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50 000 USD / 1 USD
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Minimum number of shareholders / executives
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1 / 1
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Executives – non-residents / legal entities permitted
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Yes / Yes
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Bearer shares / name permitted
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Yes (they have to remain on BPO)/ Yes
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Required registered agent / address
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Yes / Yes
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Required local secretary of the company / local General Assembly
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No / No (anywhere in the world)
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Submission of accounting reports / Annual report
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No / No
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Obligatory audit / tax declaration
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No / No
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Taxation of company income
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No
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Minimum yearly lump sum fee paid to the state
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300 USD
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Possibility to use the double-taxation agreement
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No
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