The British Virgin Islands Overview

The BVI is a British Overseas Territory, which means that it is under the sovereignty of the United Kingdom but it is not part of the United Kingdom itself.

It is located in the Caribbean Sea, east of Puerto Rico. The islands make up part of the Virgin Islands archipelago. The remaining islands are part of the US Virgin islands.

The British Virgin Islands consists of Tortola, Virgin Gorda, Anegarda and Jost Van Dyke along with fifty other smaller islands and cays. Only fifteen of the islands are inhabited. The total land area of the islands is 59 square miles. Tortola is the largest island. It is 12 miles long and 3 miles wide.

The population is 22,000 of which 18,000 people live on Tortola. Eighty three percent of the population is made up of Afro-Caribbean descendants of the slaves brought to the island to provide labour for the sugar plantations. Other large ethnic groups include the British and people of other European origins. The official language is English.

The Dutch established a permanent settlement in Tortola in 1648. In 1672, the English captured it from the Dutch. Initially the British were only interested in it for its strategic position but these interests diversified when the islands started to prosper economically resulting in the introduction of sugar cane. Slaves were imported from Africa to provide the labour for the crops. Sugar cane became the main crop and source of foreign trade. It was one of the main sources of income until the end of slavery and the growth the of the sugar beet industry in the US and Europe.

The Islands have traditionally been administered as part of the British Leeward Islands or with St. Kitts and Nevis until they became autonomous in 1967. Since then the economy has moved away from being a predominantly agriculture-based economy and has focused more on tourism and the financial services industry. In fact it is currently one of the most prosperous economies in the Caribbean.

More people are employed in the tourism industry however the financial services industry is the most lucrative. Nearly 50% of the government’s income is derived from license fees from offshore companies. Tourism attracts 45% of the national income. According to a recent survey, 41% of the world’s offshore companies are formed in the BVI. Since 2001, the industry has been regulated by the Financial Services Commission. The official currency is the US Dollar.

The executive authority in the BVI is vested in the Queen. The Queen is represented by the Governor of the BVI who is also appointed by the Queen on the advice of the British Government. A new constitution was adopted in 2007. The head of the government under the new constitution is the Premier, who is elected by a general election. An Executive Council is elected by the Premier and appointed by the Governor. The unicameral Legislative Council is made up of 13 seats.

The British Virgin Islands BC Companies Key Facts

• A BVI Business Company cannot have the same name as an existing BVI Business Company. The Registrar uses a name reservation system and therefore a company name that has already been reserved will not be accepted for incorporation.
• The following words are restricted and cannot be included in company names: "Assurance", "Bank", "Building Society", "Chamber of Commerce", "Chartered", "Cooperative", "Imperial", "Municipal", "Royal", "Trust". Any word with a similar meaning, as well as any name suggesting the patronage of the British Royalty, British, BVI or any other government or its department will result in the suggested company name being rejected by the Registrar.
• The Registrar may also refuse the registration of offensive or objectionable names.
• The name of a limited company, must end with the word "Limited", "Corporation" or "Incorporated"; the words "Societe Anonyme" or "Sociedad Anonima"; the abbreviation "Ltd", "Corp", "Inc" or "S.A.".
• It takes approximately 3-5 days to incorporate a company with a requested name.
• There is no income tax in the BVI. The company must pay tax in the foreign country as appropriate in accordance with their local laws. There is no tax on foreign profits.
• The concept of authorised share capital is not required.
• Considerations to the capital can be in any currency.
• The most effective number of shares that a company is authorised to issue is 50,000 shares with or without a par value. This is the maximum number that can be issued at the minimum state fee.The minimum authorised share capital is 1 share and the minimum issued share capital is 1 share.
• The minimum number of Shareholders is 1.
• A Register of Shareholders must be kept by the Registered Agent. The Register of Shareholders is not available on public record.
• Meetings of Shareholders can take place anywhere in the world. Meetings of Shareholders can also take place by proxy.
• Bearer shares are permitted however the original share certificates must be retained by a Custodian.
• There are no specific requirements with regards to the minimum paid up capital.
• The minimum number of Directors is 1. Corporate Directors are permitted.
• Meetings of Directors can take place anywhere in the world. Meetings of Directors can also take place by proxy. Details of the Directors are not disclosed on public file unless the Directors elect to do so.
• A Secretary is required to keep a record of the company's transactions.
• Filing accounts and auditing of accounts are not required in the BVI however it is advisable to maintain company accounts internally to determine the financial position of the company.
• Company Seals are compulsory.
• Details of the Beneficial Owner are not disclosed to the Registrar.
• Corporate Minutes and Resolutions must be kept by the Registered Agent.
• Foreign companies can be redomiciled in the BVI. BVI companies can be redomiciled abroad.