BVI companies, otherwise known as British Virgin Island Companies, have the edge over many of their competitors. They are offshore companies, which pay far less in tax. This means that they have more profit to plough back into their businesses or they can offer their consumers better value for money than their competitors who are stuck paying tax at standard rates.
Why Form BVI Companies
There are many reasons to form BVI companies. Firstly, over 500,000 companies are successfully doing business this way. The presence of so many firms from around the world doing business offshore from the British Virgin Islands is a recommendation on its own.
You do not have to use a BVI resident as the director or secretary of your company. In some other offshore tax havens you have to let someone else sit on your board or be the director of your company.
You do not have to use a BVI bank for your company and there is no maximum capital limit. It only takes two days to incorporate a company in the British Virgin Islands. The official language is English and the postal and e-mail systems are top notch, so you do not experience the communication problems you can with other less well developed offshore tax havens.
You are not only exempt from paying local tax for 20 years. You also do not have to pay capital gains tax, income tax, tax on dividends and many other taxes. However, you do have to pay stamp duty on property transactions. You must keep financial records, but do not have to submit annual accounts.
Ways to Form BVI Companies
You can apply to for a BVI company yourself however, it is better to use a offshore formations company. Because of the difference in time zones it is wise to use a formations company that is manned 24/7.
BVI companies can be set up in 2 or 3 days provided you know exactly what you are doing. Well established formation companies have the necessary experience. They will also help you to keep your BVI Company running legally for years to come.
Offshore Formations 247 have set up hundreds of BVI companies. They have been helping UK firms to form offshore companies for over 30 years.