The British Virgin Islands lie to the northwest of the United States Virgin Islands and are separated by a channel only five kilometers wide. The neighbor with the largest land area is Puerto Rico 96 kilometers to the west.
At present the British Virgin Islands is an internally self-governing colony with a ministerial system of Government operating under a Constitution adopted in 1967. The Governor, appointed by the Crown, remains responsible for defense and internal security, external affairs, the civil service, the administration of the courts and finance. He continues to have reserved legislative powers necessary in the exercise of his special responsibility. However, on other matters he is normally bound to act in accordance with the advice of the Executive Council.
The type of Company for international trade and investment is classified an International Business Company(“IBC”). An IBC cannot trade within the British Virgin Islands or own real estate there. cannot undertake the business of Banking, Insurance, Assurance, Re‑Insurance, Fund Management, Collective Investment Schemes, Trust Management, Trusteeship, the rendering of investment advice or any other activity that would suggest an association with the banking or insurance industries. It cannot offer its shares for sale to the public.
Any name that is identical or similar to an existing company, or any name that suggests the patronage of the Royal Family or the Government of other British Virgin Islands.
Names requiring consent or a license includes those of Re‑Insurance, Fund Management, Investment Fund, Trust, Trustees, Chamber of Commerce, University, Municipal or their foreign language equivalents.
Name of an IBC shall be suffixed with words like "Limited", "Corporation", "Incorporated", "Societe Anonyme", "Sociedad Anonima" or the relevant abbreviations.
The normal authorized share capital is $50,000 with all of the shares having a par value, this being the maximum share capital for the minimum duty payable upon incorporation and annually thereafter. The share capital may be expressed in any currency. The minimum issued capital is one share of no par value or one share of par value.
Classes of shares that are permitted in British Virgin Islands:
Registered shares
Bearer shares
Shares of no par value
Preference shares
Redeemable shares
Shares with or without voting rights.
A Company incorporated between 1st January and 30th June in any one year pays its license fees on or before the 31st May in the year following incorporation and then annually. A Company incorporated between 1st July and 31st December in any one year pays its license fees on or before the 30th November in the year following incorporation and then annually.
Companies with an authorized capital up to $50,000 pay $300.00 per year, and companies with a share capital in excess of $50,001 pay the sum of $1,000 per year. Companies with a share capital that does not exceed $50,000 and having some or all of its shares with no par value pay the sum of $350 per year.
The British Virgin Islands has treaties with Japan and Switzerland, although they have limited benefit.
Information Checklist
GENERAL
Political Stability Good
Common or Civil Law Common
Type of Company International Business Company
Disclosure of Beneficial Owner No
Migration of Domicile Permitted Yes
Tax on Offshore Profits Nil
Non‑English Language Names Allowed Yes
Currency: US Dollar
Language of Documents English
Exchange Control None
CORPORATE REQUIREMENTS
Minimum Number of Shareholders One
Minimum Number of Directors One
Bearer Shares Allowed Yes
Corporate Directors Permitted Yes
Company Secretary Required Yes
Standard Authorized Share Capital $50,000
LOCAL REQUIREMENTS
Registered Office/Agent Yes
Company Secretary No
Local Directors No
Local Meetings No
Government Register of Directors No
Government Register of Shareholders No
ANNUAL REQUIREMENTS
Annual Return No
Submit Accounts No
RECURRING GOVERNMENT COSTS
Minimum Annual Tax/License Fee $300
Annual Return Filing Fee N/A
