What are the advantages of the BVI as an offshore jurisdiction for Chinese investors? What makes it different from other jurisdictions for Chinese investors?
The British Virgin Islands (BVI) has built a reputation as one of the world leading finance centres meeting the needs of international businesses and high net worth individuals.
Advantages for Chinese investors using BVI structures and services include:
- Asset security- the ability to transfer domicile; protect assets from expropriation or confiscation orders from foreign governments;
Transfer assets to another company, trust, foundation, association or partnership;
- Merge or consolidate with any other BVI or foreign company in accommodating jurisdictions;
- Exemption from all local taxes and stamp duty;
- Maximum confidentiality and anonymity no requirements to file organizational or accounting information with the Registrar of Corporate Affairs.
- Statuary flexibility in filing Registers of Directors or Members at their own option and inde-registering at any time.
- Provision for the re-use of old company names in appropriate circumstances;
- Allowance for the BVI BC to be registered with foreign character names;
- Ease of operation, maintenance and control BVI BC can:
- No statutory requirement to hold annual general meetings;
- Incorporation within one working day of the application being received by the Registry;
- Excellent and flexible post-incorporation follow-up services;
- Customized certificate and document verification geared to meet the unique business needs of individual BC ;
- No disclosure or minimum capital requirements;
- Highly competitive fees and costs;
What are the requirements for company formation in the jurisdiction?
- A name must be chosen for the company
- A decision must be taken on the location of the company registered office.
- The company memorandum and articles of association must be drafted.
- Decide on directors and shareholders and obtain their consent.
What is the general taxation rate for incorporated companies?
Companies incorporated in the BVI are not taxed, as income tax is zero-rated.
Can the regulatory authorities request information about the background and identity of company officers, or company accounting details?
All companies and limited partnerships registered in the BVI are required to maintain records and underlying documentation and to keep such records and underlying documentation for a minimum of five years.
What are the fees associated with company incorporation and what length of time is required to open a company?
The fees for incorporating a company limited by shares are as follows:
- Where the company is authorisedto issue less than 50,000 shares