IBC/Offshore Companies on British Virgin Islands

Progressive legislation
The British Virgin Islands IBC legislation was introduced in 1984 but was developing and subsequently amended taking into consideration the changes required by the persons providing BVI offshore services.

Efficient Incorporation/Registration
Under normal circumstances, BVI Corporations can be incorporated/Registered within 3 working days.

Flexibility in company structure of an offshore British Virgin Islands Company.

• Only one director or shareholder required for the company formation.


• Shareholder(s) and director(s) may be the same person.


• The shareholder(s) and director(s) can be a natural person or a corporate body.


• There is no requirement of appointing local shareholder(s) and director(s) for British Virgin Island Companies.


• There is no requirement of resident secretary.

Privacy for identity of principals
The BVI incorporation documents do not carry the name or identity of any shareholder of director. The names or identities of these persons do not appear in any public record.

Confidentiality
Shareholder(s) and director(s) nominee services are allowed to ensure confidentiality of beneficiaries.

• Shares and capital requirements For British Virgin Islands Corporations.


• Shares can be issued with or without par value;


• Shares may be issued in any recognizable currency or in more than one recognizable currency;


• Shares may be paid up in cash or through the transfer of other assets or for other consideration;


• The standard share capital is USD $50,000 or an equivalent in another recognizable currency.

Minimum capitalization
The minimum paid in and issued capital may be one share which is fully paid.

Taxation of the BVI IBC on Profits
According to the BVI IBC Act of 1984, the offshore companies are exempted from all the taxes for the period of 20 years.

IBC - International Business Company

What Is An International Business Company?
An "IBC" is a separate legal entity similar to a domestic incorporated company, created under the authority of a statute. The primary difference is the allowance in certain "Havens" of a tax-exempt status, in order to attract new business to their otherwise remote location. A Company is a separate legal "person" for tax reporting purposes.

Why Should I Buy An IBC?
An IBC is a globally recognized legal entity or form of doing business, which is treated as a separate "person" allowing the Company to be responsible for it’s own risks and rewards. The limiting of risk is a key factor with most experienced business people, and the unlimited life-span of a company makes it a great vehicle for passing your successful enterprise on to your family, and is mostly used for holding private investment capital securely offshore in a tax-free country.

What Are the Main Advantages of an IBC?
There are many advantages to moving assets offshore, some of these are:

Reduction of Tax Liability - Through International tax planning - a foreign jurisdiction can offer unparalleled opportunities for tax free revenue, plus repatriate money tax-free.

• Investment Holdings - Higher returns and no tax burden allows funds to double offshore every 2-3 years instead of every 15-20 years onshore.
• Asset Protection - To secure against future claims such as judgment, divorce proceedings, bankruptcy, creditors and litigation.
• Confidentiality - From claimants, ex-spouse, competitors, and other parties from whom you wish to keep your business interests private; and
• Estate Planning - Family and Protective Trusts for accumulation of investment income and long-term benefits for beneficiaries on a favourable tax basis (without inheritance, income, or capital gains taxes);

What Can an IBC Do?
Your IBC can act in many ways, for example it can:

• Open a bank account, make deposits and transact globally.
• Manage offshore investments such as term deposits, bonds, stocks, mutual funds, CDs, etc.
• Provide consulting, management, or professional services (and hire you).
• Own a Corporate credit card, and allow you to cover your legitimate expenses using it.