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BVI Business Company (BC)

British Virgin Islands

Last verified 2024-09-01

The British Virgin Islands (BVI) is the world's largest offshore company jurisdiction by number of registered entities, with over 350,000 active companies. BVI Business Companies offer complete tax exemption, high confidentiality (beneficial ownership register is not publicly accessible), flexible corporate governance, and no accounting or audit requirements. Widely used as holding companies, joint venture vehicles, IP holding structures, and investment fund vehicles. The BVI is a UK Overseas Territory and uses common law. Since 2023, the BVI has implemented beneficial ownership registers accessible to law enforcement and qualifying bodies but not the general public. Banking requires substance in another jurisdiction; BVI companies typically bank through Singapore, Hong Kong, Switzerland, or the UAE.

Formation Details

Setup Time
3 days
Setup Cost
$2,000
Annual Cost
$1,800
Corporate Tax
0% (no corporate income tax, capital gains tax, or withholding tax)
VAT Threshold
N/A
Nominee Directors
Allowed
Public Register
No
Residency Required
None. Requires a licensed BVI registered agent. No physical office required.
Banking Difficulty
Difficult

US Person Considerations

BVI companies owned by US persons are high-scrutiny CFCs. All CFC reporting rules (Form 5471, GILTI, Subpart F) apply fully. The BVI's secrecy reputation has diminished significantly following beneficial ownership register requirements under UK pressure. US persons using BVI structures must maintain meticulous IRS compliance.