Important Features of a BVI Offshore Company
An International Business Company or IBC is the most commonly used term for what is more widely known as an offshore company. IBC’s are considered the basic building blocks of the offshore financial services industry. A modern BVI offshore company is a private corporate organization, which is exempted from tax. Offshore company guidelines are suitable for virtually any international business activity. The company has a reasonably pliant organizational structure. It is not bogged down with excessive reporting and book or record keeping. Most importantly, BVI offshore company maintains a strict confidentiality provisions.
Below are some important characteristics of BVI offshore company discussed in detail.
A BVI Business offshore company is exempted from the BVI income tax. There is a similar exemption of rents, compensation, interests, royalties, dividends, and other amounts paid by a company. In fact, the exemptions also include all capital gains realized with respect to any shares, debt obligations or other securities of the company. In fact, all transactions and financial instruments relating to transfers of any type of real estate of assets, shares, debt obligations, or securities to or by a BVI BC offshore company are exempted from the stamp duty. However, one sole exception is for land-ownerships transactions in the British Virgin Islands. In this case, the stamp duty is payable.
One of the key features of BVI Offshore Company is the confidentiality clause. Under this clause, the details pertaining to the company including company beneficial owners, directors and shareholders are NOT part of public record. Information such as Register of Members, Register of Directors and all Minutes and Resolutions by the Company are kept safely and confidential at the Registration Agent’s office. These files are only revealed to company shareholders during inspection. The only information or documents that are accessible to public are the Memorandum and Articles of Association. Even this document doesn’t reveal specific information or indicate facts or names of actual shareholders, directors, or the beneficiaries of the company.
A BVI offshore company requires only one owner, one Director and one shareholder. If all of them are one person, the company function or profitability won’t be affected. Besides, the director, a company doesn’t need to hire or appoint any more operating officers. Therefore, one could say that this framework has structural and managerial flexibility. In fact, the management structure of a BVI offshore company can be designed according to a wide range of requirements. Directors, shareholders, and officers of a BVI business company may be individual or corporation from any nationality. The stakeholder’s meetings should be held in the British Virgin Islands. Moreover, there isn’t any requirement of an annual general meeting.
General meeting can take place over the telephone. Perhaps one can choose to communicate through other advanced electronic means. Moreover, directors and stakeholders may vote by means of proxy. In a BVI offshore company has only one member who is an individual, and the same person is the active and sole director, only he is designated to appoint a reserve director to act in his place in the event of his death.