More information about British Virgin Islands
It’s no secret that businesses must look for every opportunity to smartly manage their financial resources to compete in the 21st century global economy. In a time when many nations are increasing taxes and regulation in an effort to increase social safety nets and manage encroaching debts, businesses are forced to make some difficult choices, including major structural changes that can offer the ability to not only survive, but to thrive in a tough economy.
Located in the Caribbean, nestled in the breathtaking azure seas, lie the British Virgin Islands. The British Virgin Islands developed an idea which allows business to prosper. They have separated companies which trade locally from offshore companies. Locally trading businesses pay regular taxes, however, offshore companies can enjoy a fully tax exempt status.
These offshore companies are officially known as international business companies (IBC) and have been a critical component in tax and wealth planning since the 1980s. Offshore companies are relieved of any tax burden to the British Virgin Islands, but rather pay just an annual flat fee which maintains their registration status as active. Included in the flat fee paid by offshore companies is our annual maintenance fee.
The BVI tax free policy for offshore companies also includes the advantage of ensuring confidentiality regarding accounts and figures. No offshore companies in the BVI will be required to turn over annual accounting information, including balance sheets, income/revenue and profit and loss statements. BVI also waives requirements for intrusive auditing and the associated costs of CPAs although the laws make it mandatory for all IBCs to prepare annual accounts.
Offshoring in the British Virgin Islands is a great way for companies to improve their bottom line by saving the costs and time lost in giving an accounting of your business to an intrusive government. Compared to most nations, incorporating your business here allows you to save on taxes, administrative costs, and fees associated with legal and accounting services.
While this is enough for most people to consider incorporating in BVI, another added benefit, and one that’s rather significant, is that operating an international business company here is simple and undemanding – when compared to businesses registered in a classic tax country. While many countries tie a business down with regulations, restrictions, requirements for permits and licenses, in the BVI, you can devote your time and energy to running your business rather than being caught up in the minutiae of red tape and unbearable bureaucracy that places a stranglehold on business.
In the past, governments have tried to intimidate business against using offshore structures, but rest assured, incorporating in the BVI is a long established and trusted practice. Many globally-operating corporations practice offshoring in full compliance with the law and as a result, they are benefiting from the massive tax savings they enjoy by doing so. Some of the largest global corporations in the world, including tech giants like Apple and Google, have taken advantage of growth opportunities in offshore jurisdictions as a key strategy in tax planning, and doing so has helped them become the world leaders and trendsetters they are.
For optimal tax benefits from offshoring, companies often employ directors based in an offshore location. Large corporations like Google and Apple appoint key staff and management positions locally, thereby meeting a vital element for offshore structures – ensuring that tax responsibility does not lie in your home country. We understand that small companies may not have the available budget for employing local staff. This is why OCQ offers the diamond package, which provides your company with nominee directors and managers in an offshore country. Official management, like the company, then meets this requirement for optimal offshoring while still allowing you to maintain complete ownership and control of your company wherever you are resident.
OCQ knows that the BVI is a reputable jurisdiction, but popularity may wax and wane with pressure from the OECD in regards to anti-money-laundering, compliance and know-your-customer regulations. This sometimes results in increased scrutiny for new incorporations and for annual renewals. When there is additional paperwork and more follow-up questions, it leads to higher fees and lengthier processing times. The remedy to these difficulties is Belize, which welcomes businesses, large or small, regardless of industry, and from every nation. Registration in Belize is faster, more efficient and requires a 30% lower investment.
OCQ is your perfect business partner when forming an offshore company. We understand all the moving parts. We know what it takes to incorporate, which banks are most suited to which customers, and we understand our customers want solutions that are simple, quick, and affordable when registering their offshore companies. We keep our process up to date without getting weighed down in bureaucracy. We don’t bog you down in paper or electronic forms.
While we are a strategic part of forming more than 7,000 companies a year, we understand that you may do this only once. We are uniquely qualified to walk you through every step of the process and answer any questions that you may have. We’ve got a skilled, qualified and experienced team at your service anytime, dedicated to allowing you to incorporate offshore efficiently, simply, quickly and in compliance with the law. Contact us at firstname.lastname@example.org today to see how we can help your company thrive.