Offshore companies or IBCs

BVI Incorporation

(International Business Company) are an essential or countries whose topography includes coastal areas. IBCs are primarily private corporations flaunting a viable organisational structure. They are exempted of taxes because of their international business affairs. They maintain strict confidentiality within their corporate structure.
In 1984, the IBC adopted the British Virgin Island Ordinance and the IBC BVI acquired a prime status in the offshore services industry. Nowadays, BVI is the most famous tax haven as every month, more than 5000 offshore companies get registered and the number of total incorporations has risen to a whopping 600.000! BVI is therefore, the most dominant offshore domicile of present day and many IBCs around the globe are simply referred to as BVI.

Although BVI was already a remarkably successful offshore corporate legislation, yet on January 1, 2005, the BVI Business Companies Act ensured its complete supremacy. Prior to the enforcement of this Act, the offshore financial industry faced a lot of challenges, particularly the pressure against ‘illegal discrimination’ between two types of companies; domestic and offshore. With the new BVI Act, all such discriminations have come to an end and a singular, uniform company; the BVI Business Company which enjoys the benefits of its former legislation, including tax exemption, sparkles on the horizon.
Characteristics:

1. Tax Exemption:
As stated earlier, the most important characteristic of a BVI company is that it is absolutely exempted from income tax which implies that the estate, inheritance, succession or gift tax is not payable with respect to any shares or debt obligations of a BVI BC.

2. Secrecy:
Another prime factor of a BVI business company is its confidentiality. Except for the Memorandum and Articles of Association, no other information regarding details of the company beneficial owners, directors and shareholders are not a part of public record.

3. Ease of Access:
BVI is easily accessible by sea and air, has modern telecommunications and is on US Eastern Standard Time.

4. Structural Flexibility:
A BVI company is unique because it does not really require a whole company of individuals or corporations to be run. It may have only one director, one share holder, and one owner, and can still thrive in the industry.
General advantages:
Compiled below are some advantages that set BVI company apart from other offshore financial companies.
• The official currency of BVI is a US dollar, which ensures that the local government does not control the currency, or artificially manipulate the money supply.
• The BVI Company boasts of a clean international repute because of its political stability which it has maintained due to its British Overseas Territory status.
• It has an independent judicial system based on the English Common Law which enhances its position among the competitors.
• Client information secrecy is of utmost importance in BVI. Therefore, information sharing pacts with foreign countries or organizations in exchange for financial privileges is absolutely avoided. It is also because BVI
Company is an independent country with a fairly high standard of living.

 

[JohnLocke]

I read many places BVI is dead as an offshore jurisdiction, can that be true or nonsense?

It's just been complicated to incorporate a BVI company because of all the requirements they have to the documents required.

 

[JohnLocke]

Would you say it's easier to just order a read-made company maybe?

It's not going to be "easier" they will require the same documents and the same information. I guess they already knew about the #PanamaPapers long before it got public!

 

[JohnSeed]

BVI offshore company formation was among the first to request outrageous documents, so the Seychelles was following and I wonder who is next!

Today one can forget about BVI as a jurisdiction to incorporate their business, it's complicated and provides almost no security any longer.

 

[mnschwarz]

If one already has a BVI IBC with bank accounts, assets etc, would you recommend incorporating elsewhere and shifting these assets? Or is it more a problem with new incorporations?

 

[dotbloup]

If one already has a BVI IBC with bank accounts, assets etc, would you recommend incorporating elsewhere and shifting these assets? Or is it more a problem with new incorporations?

If someone has an IBC anywhere in the world, if it is ready, i would suggest to keep it and to see what you can do with it.

This IBC can hold patents, trademarks, copyrights, domain names and sell license, right for use to any companies in any country in the world to a reasonable extent. (Not 50-100% of a company profit).

I also say a reasonable extent because it is required to repatriate the money.

 

[suzy]

Same thing just two different terms. An Offshore IBC is the same as an offshore company most often IBC just make it clear that it can't do domestic business.

 

[Houdini]

Offshore Company with the ending IBC can't do domestic business isn't that the difference?

 

[uplana]

Isn't it all the same as long as the company does not do business locally you can call it a IBC even companies not registered in an offshore jurisdiction may be called IBC's

Yeah same thing. Some offshore jurisdiction don't allow the wording IBC but rather call the LTD or similar!

 

[uplana]

I would not recommend to incorporate your business in the BVI any longer! too much trouble to little outcome.

Why not? If we can collect all the documents required to get a BVI company wouldn't it be a better option compared to Cyprus, Malta or UK?

 

[Old Spice]

Who knows what European offshore companies might have to comply with in the future since they are part of the EU gang. I suspect a BVI company has the advantage of its independence and the BVI government can structure any agreement to its own advantage. BVI already has some double taxation agreements in place and of course the TIEA's with some of most highly taxed nations in the world. This alone can make a BVI company a powerful entity where the EU, Asia and the US have flawed business models.

 

[JohnLocke]

Well, I don't see any benefits to BVI compared to Cyprus or Malta.

 

[Old Spice]

From a legal perspective, my guess an EU registered company doing business inside the EU does carry some liability. i.e. A contractual obligation could be threatened by something as simple as an EU investigation with no merit.
In the case of the BVI corporation, it would be difficult to carry forward the investigation due to the jurisdiction.

I have this gut feeling the EU as a gang is trying to protect its interests and will gradually convince these low tax countries they will need to work the EU way and equalize interests.

BVI companies are not for everyone but they do have a niche when legal matters are of interests.

 

[Green]

Dear all,

I can't see the button to create new thread.

Here is my problem:

I own a Seychelles company, but I am unable to open a bank account.

This company is newly set up recently.

Therefore, I would like to close this company.

However, the dissolution fee is very high.

Can any of you give me a suggestion to lowest my fee to finish this company?

Heard

1) just don't pay renewal fee, but any risk? and how long will this Seychelles company last?
2) sell this company to others. Anything I need to notice?
3) do other investment. But what? since I don't have money