COMPANY STRUCTURE AND REGISTRATION PROCEDURES IN THE BVI
What's the difference between the old BVI IBC and the new BVI Business Company?
The new BVI Business Company is better! Probably the most important change is the removal of the old discrimination between "domestic" and "offshore" companies, which were formerly registered in the BVI under two different laws. The new-type BVI Business Company is one-for-all, and all companies enjoy zero income tax. Therefore, nobody can accuse the BVI of "ring-fencing" or giving "unjustified advantages" to offshore companies, as compared to domestic ones. This has recently been a very powerful international argument, feeding the accusations of "illegal state aid" which the tax haven jurisdictions are allegedly giving to non-resident businesses, in form of tax breaks. BVI has sucessfully dealt away with this argument by extending the no-tax benefits to all domestic businesses, too. Of more practical importance to our clients is probably the fact that all BVI Business Companies are now considered tax resident in the BVI. By merely looking at their documentation, it is impossible to determine if a given company is actually "local" or "offshore".
Some other progressive changes in the the new BVI Business Company are that there is no more a requirement to state any operational objects in the company formation documents (one can do so, of course, but it's optional), and there is no requirement to have any specific authorized or paid-up capital whatsoever (while, again, it can be determined if required). For more detailed review of all features of the new BVI Business Company, please see the chapter BVI Offshore Companies in our Main Menu.