British Virgin Islands (BVI)
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Capital: Road Town
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Population: 22,000
(est. 2003)
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Languages: English
(official)
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Area: 153 sq. km
(land area)
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Currency: United
States dollar (USD)
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Fiscal year: 1 April
- 31 March
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Independence status:
overseas territory of the UK
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BACKGROUND
BRITISH VIRGIN ISLANDS ("BVI") is a group
of islands & islets located in Caribbean.The BVI
have the basic offshore financial centre attributes:
stable, capitalistic government, good communications,
an educated population, no exchange controls, and
a tax and regulatory climate that encourages offshore
activity. The country is a British Dependent Territory,
with locally elected members and a Governor appointed
by the British Crown. The economy, one of the most
stable and prosperous in the Caribbean, is highly
dependent on tourism, Livestock raising is the most
important agricultural activity; poor soils limit
the islands' ability to meet domestic food requirements.A
stable and established political structure is essential
to the continued success of any offshore financial
centre.
Legal System
The BVI is a British Crown Colony with its corporate
law based on the English common law. The Islands are
self-governing, with a Governor who charis the Executive
Council. There is also a Legislative Councial and
a judicial system that is under the direction of the
Eastern Caribbean Supreme Court with final appeal
to the Privy Council in London, England.
Currency
There are no exhange controls in the BVI and corporations
may transfer fund with complete freedom. The main
currency is the US dollar and many international banks
operate branches in the BVI.
Confidentiality
Unlike the majority of offshore centres, the British
Virgin Islands offer the discretion of not having
to disclose the beneficial ownership of companies
to any authority or person in the British Virgin Islands.
Furthermore, as seen earlier, British Virgin Islands
IBC's have the power to issue bearer shares.
Taxation
International Business Ordinance was introduced in
1984. This provides for the incorporation of companies
exempt from BVI taxes. The success of the financial
sector in the British Virgin Islands (BVI) is due
almost exclusively to its role as the world's leading
jurisdiction for international business companies
(IBCs).Double Taxation Agreements between the United
Kingdom and Japan and Switzerland extend to the British
Virgin Islands but do not generally apply to IBC's.Hong
Legislations
The BVI Government has announced that the International
Business Companies Act requires all bearer shares
to be held in the custody of either an ˇ§authorisedˇ¨
or ˇ§recognisedˇ¨ custodian and for bearer shares
to be immobilized. It also provides for companies
to amend their memoranda of articles of association,
which currently give an IBC the power to issue bearer
shares. The laws affecting the operations of the company
includes following Acts:-
