British Virgin Islands

The British Virgin Islands (BVI) are a group of islands located in the Caribbean approximately 100 kilometres east of Puerto Rico. The islands are a dependent territory of the UK with a population of 19,000. English is the official language, and the US dollar is the official currency. The legal system is based on English Common Law.

The BVI's "International Business Companies Ordinance" was enacted in 1984 as a result of the efforts of the islands' Government to incorporate all of the best and most useful sections of legislation of other favourable jurisdictions. This has resulted in a corporate code tailored to the needs of international business which has since been used as a model for similar legislation introduced in several other jurisdictions. The main features of the legislation are:

• A minimum of one shareholder.
• A minimum of one director, which may be a corporate entity.
• Shares may be registered or bearer. Bearer shares, however, must be held by a licensed custodian.
• Par and no par value shares are permitted.
• No minimum or maximum capital requirements.
• A resident agent and a registered office are required in the BVI.
• Companies are required to maintain an up-to-date register of directors at the office of their registered agent.
• Minimal information available on the public record.
• No requirement to prepare or file annual financial statements.
• No requirement to disclose beneficial owner to the local authorities.
• The company name may be in any language.
• No taxation, but annual registration fees are charged at two rates. Companies with an authorised share capital in excess of US $50,000 pay $300 per annum, whilst companies with an authorised capital lower than this pay an increased fee of $1,000. Companies wishing to issue bearer shares must pay the increased fee regardless of their capital.

There are no exchange controls relevant to an International Business Company. However, such companies may not be used to do business with persons resident in the BVI.

The BVI has one double tax treaty in place, with Japan.