BVI company registration full process description
2023-04-13
Since BVI companies are not subject to taxation, are not subject to foreign exchange controls, and the local government requires very little information to be submitted for deposit. As a result, many multinational companies and individuals have been attracted to register BVI companies. Currently, the BVI has become one of the most popular offshore incorporation destinations in the world.
Advantages of BVI Companies
- Tax advantages: BVI companies do not have corporate income tax, personal income tax, capital gains tax, value-added tax, estate tax, etc. This means that BVI companies can reduce the cost of business through these tax advantages.
- Confidentiality: The registration information of a BVI company is not open to the public, only the shareholders, directors and secretary of the company can know it. This confidentiality helps to protect the confidentiality and privacy of the company’s business.
- Flexibility: The legal framework of a BVI company is very flexible, allowing the company to develop internal rules and systems that suit its business needs. In addition, a BVI company can easily conduct equity transfers and mergers and acquisitions.
4.High international recognition: The legal framework of BVI companies is similar to that of the U.K., and its company law is widely used and recognized worldwide; BVI companies are also trusted and recognized by international financial institutions, investors and entrepreneurs.
- Low cost: Compared to other countries, the cost of a BVI company is relatively low, and the registration and annual maintenance fees are relatively inexpensive. In addition, it is easier to open bank accounts and apply for credit cards in BVI companies.
In short, BVI companies have many advantages such as tax advantages, confidentiality, flexibility, high international recognition and low cost. These advantages have made BVI companies the choice of many international entrepreneurs and investors.
BVI company registration conditions
At least one shareholder and director who is at least 18 years old
Local natural or legal persons as agents
Information and time required
Company name in Chinese and English
The original identity card or passport of the director or company promoter, or a copy certified by a certified public accountant, lawyer or notary public
The original address proof (e.g. bank statement, utility bill, gas bill, landline bill, etc.) of the director for the last 3 months, or a copy certified by a certified public accountant, lawyer or notary public
It takes about 12 working days to register a brand new company (after receiving all the information and passing the due diligence check)
It takes about 3 working days to purchase a ready-made shell company (after receiving all the information and passing due diligence)
Basic requirements for registering a BVI company
1、BVI company composition: Only one applicant can set up an offshore BVI company, and the company name must end with “Limited Company”.
For example: LIMITED, CORPORATION, INCORPORATED or their abbreviations, such as LTD, CORP or S.A. Company names cannot end in “trust company” or “bank” or other words deemed to have a similar meaning unless they are licensed in the BVI accordingly.
2、Registered capital of BVI company: The standard capital is USD 50,000, divided into 50,000 shares, each share is USD 1, no capital verification is required.
3, BVI company directors: one or more directors, either a legal entity or a natural person of any nationality.
4, BVI company shareholders: only one shareholder (Shareholder or Member) is required, the shareholder can be a natural person or a body corporate, and can be a resident of any nationality (or company). The personal information of the shareholder is not required to be disclosed and is not available for public inspection. However, the Register of Shareholders or Register of Members must be kept at the company’s registered office in the British Virgin Islands (BVI). The Company may issue registered or bearer shares. A shareholder, whether a natural or corporate shareholder, may also be a director of the company.
5、Secretary of the Board of Directors of BVI Company: Although the appointment of a secretary is not mandatory, it is recommended by the BVI government.
6、Meeting of directors of BVI companies: Directors may hold a meeting in any country or attend such a meeting through a proxy.
- Shareholding of BVI companies: Directors or senior management of the company may not be shareholders of the company.
8, BVI company seal: BVI companies must have their own seal, and the company seal must be reported to the Companies Registry.
9、Taxation for BVI companies: Exemption from taxation for any business activities and commercial activities conducted outside the BVI.
10、Registered Agent and Registered Office: All companies incorporated in the British Virgin Islands are required to appoint a registered agent (Registered Agent), which is a trust company or registered service company registered in the British Virgin Islands and holding an agent’s license.
11、Registered Office: All companies incorporated in the BVI must have an address in the BVI as the company’s registered address. The registered office (registered address, Registered Office) must be located in the British Virgin Islands (BVI) at the office of the registered agent.
The process of registering a BVI company
- Determine the type and name of your company: First, you need to determine the type of company, such as a limited liability company or an international business company, and choose an available company name.
- Find a registered agent: You need to find a trusted registered agent who will represent you through the registration process.
- Prepare the incorporation documents: The registered agent will provide you with a list of documents to be prepared, which usually include the articles of incorporation, the list of directors and shareholders, and the incorporation forms.
- Submit the registration application: After preparing the registration file, submit it to the registration agent, who will submit the registration application to the registrar on your behalf.
- Complete the registration: Once the registration authority approves your application for registration, you will be provided with a certificate of incorporation and other necessary documents.
- Open a bank account: Opening a bank account is an important step after registering a BVI company. You can choose to open an account in BVI or choose a bank in another country to open an account.
BVI Annual Audit
The company is not required to file any returns or financial statements with the BVI government. The company is only required to pay the corresponding annual license fee (annual maintenance fee).
If your BVI company is incorporated in the first half of the year, i.e., between January 1 and June 30, the annual audit fee is due in May of each year (excluding the year of incorporation).
If your BVI company is incorporated in the second half of the year, i.e., between July 1 and December 31, the annual audit fee is due in October of each year (excluding the year of incorporation).
Bank account opening for BVI companies
Bank account opening: You can open an offshore account with a bank outside the British Virgin Islands (BVI), such as in Hong Kong, Shenzhen, Shanghai, Malaysia, the United States and other countries and regions.
The BVI government does not require companies to open a bank account. Businesses can decide whether to open a bank account based on their actual situation, but bank accounts can only be applied for after the company has been established.
When opening an account, the director of the company must come to the bank in person and bring along the registration certificate, articles of incorporation, seal, personal identification documents and deposit.
Account opening fees in the BVI are usually higher and vary from bank to bank.
