(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.
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.
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.
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.