Today, the global market is open and is becoming increasingly versatile, giving even smaller businesses an opportunity to go international. Many business owners take the decision to move and start their businesses in niche overseas markets which has better clientele than at their home turf.
Having an overseas business has many advantages. If you’re looking to expand your business, starting operations in an overseas market is a great way to go. This is why a lot of business owners are looking into the benefits of opening an overseas business.
Starting your business overseas will give you a chance to identify and utilize markets and opportunities in new target markets, effectively bringing in more profits. When we talk about overseas business, The British Virgin Islands (BVI) is one of the most sought after destinations by businessmen across the globe. This small Caribbean country is a British overseas territory in the Virgin Islands archipelago with a small population and a very stable and prosperous economy. With its small population and surplus budget, the BVI was ranked as the 19th highest GDP per capita in the world according to the CIA World Factbook in 2010.
Starting An International Business Company in BVI
To start your business in the BVI, the country provides the provision of forming an International Business Company (IBC) within its territory. To set up an International Business Company in the BVI, every corporate or business owner must follow the following set of instructions:
- Submit a company name, along with the name of director(s) if any.
- Furnish details about the nationality, birthdate and address of the director(s) and stakeholders.
- Appoint nominee stakeholders.
Although foreign business owners need not be a resident of the country, they must maintain a physical address within the BVI territory with the help of bank statement copies and photo identification cards as proof of address. Further, all the legal details, including stakeholder names and business documents are held privately by the Registry of Corporate Affairs, to protect the privacy of the business owner(s).
Besides, there are no requirements for the filing of financial statements in the BVI for an International Business Company as income generated outside of the BVI borders are tax exempted.
While the reasons for setting up a business in the BVI differ from business to business, they all are entitled to the following benefits:
- No minimum share capital requirement giving the business owners added flexibility
- No restriction for annual report filing and on foreign capital
- Rents, dividends, royalties, interests and other forms of compensation are all tax free.
- Affordable incorporation fees
- Zero currency restrictions within the BVI territory
The British Virgin Islands Business Companies Act 2004 is also responsible for abolishing the authorized capital of the company and replacing it with a maximum number of shares, which the company is authorized to issue, with or without par value. The number of shares a BVI company is authorized to issue affects the government’s company incorporation fee.
Business owners usually have numerous reasons for starting their business overseas. And to start your business in a new country, it is always good to get some expert guidance to ease the process.
Consult with our company incorporation experts today for more information. Contact us at +9714 311 6547 or email at email@example.com.