All countries have laws that govern the manner in which corporate organizations conduct their activities. While laws vary from country to country, there are certain statutes that are universally common. Companies operating in the British Virgin Islands are mandated to abide by the BVI corporate law enacted in 2004 and amended in 2015. This article gives insights on what this law is all about.
The first thing that is easily apparent is that the act permits many types of companies to do business in the country. This is what essentially attracts many investors to set up base in the area. The most common corporate organizations present are limited liability companies. Others include unlimited companies and those that are limited by guarantee.
All corporations are registered via the Financial Services Commission. No other agency has the mandate to do so. The other duties of the commission include the supervision and regulation of financial services in the area.
While registering a company seems all too straightforward in most countries, the same cannot be said about registration in the BVI. The law stipulates that only licensed and registered agents can apply for incorporation. This is a process that cannot simply be done by an ordinary individual, even if one were the sole proprietor.
An incorporation certificate can only be issued once upon the completion of a set of steps. To begin with, a company name must be agreed upon. There are no shortcuts here, with every applicant required to present a name that is untaken or bears no similarity to other existing entities.
The memorandum of association comes next. At this stage, the finer details of the corporation are brought to light. It acts as a constitution to the institution. Authorities insist it must indicate the type of company, its ownership distribution and the internal regulations it operates by.
All companies are also required to have a physical address. In addition to this, they must have registered agents in place. It is also mandatory to have an elected director in all corporations. Those that violate any of these statutes are often struck off the list of companies and have their certificates of incorporation revoked.
Besides the pre registration laws, there are other requirements that must be met annually. They include license fees, accounting records, financial statements, audit reports, shareholder meetings and registers. The annual license fees should be paid before the 31st of May or the 30th of November depending on the time of year a company is registered.
The government has tax friendly laws for corporations, which explains the constant influx of investors setting base locally. For instance, capital gains are untaxed. Moreover, there is no value added tax on the sale of products and services. The icing on the cake is the fact that the government is yet to enter into a double taxation agreement with other countries.
All said and done, setting up a company locally is relatively easy. It is a recommended destination for investors who want to avoid crippling government bureaucracy. Once you identify a registered agent to help you out, you should be good to go.
The first thing that is easily apparent is that the act permits many types of companies to do business in the country. This is what essentially attracts many investors to set up base in the area. The most common corporate organizations present are limited liability companies. Others include unlimited companies and those that are limited by guarantee.
All corporations are registered via the Financial Services Commission. No other agency has the mandate to do so. The other duties of the commission include the supervision and regulation of financial services in the area.
While registering a company seems all too straightforward in most countries, the same cannot be said about registration in the BVI. The law stipulates that only licensed and registered agents can apply for incorporation. This is a process that cannot simply be done by an ordinary individual, even if one were the sole proprietor.
An incorporation certificate can only be issued once upon the completion of a set of steps. To begin with, a company name must be agreed upon. There are no shortcuts here, with every applicant required to present a name that is untaken or bears no similarity to other existing entities.
The memorandum of association comes next. At this stage, the finer details of the corporation are brought to light. It acts as a constitution to the institution. Authorities insist it must indicate the type of company, its ownership distribution and the internal regulations it operates by.
All companies are also required to have a physical address. In addition to this, they must have registered agents in place. It is also mandatory to have an elected director in all corporations. Those that violate any of these statutes are often struck off the list of companies and have their certificates of incorporation revoked.
Besides the pre registration laws, there are other requirements that must be met annually. They include license fees, accounting records, financial statements, audit reports, shareholder meetings and registers. The annual license fees should be paid before the 31st of May or the 30th of November depending on the time of year a company is registered.
The government has tax friendly laws for corporations, which explains the constant influx of investors setting base locally. For instance, capital gains are untaxed. Moreover, there is no value added tax on the sale of products and services. The icing on the cake is the fact that the government is yet to enter into a double taxation agreement with other countries.
All said and done, setting up a company locally is relatively easy. It is a recommended destination for investors who want to avoid crippling government bureaucracy. Once you identify a registered agent to help you out, you should be good to go.
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Get an overview of the things to consider before choosing a BVI corporate law practitioner and more information about an experienced attorney at http://www.grantlawbvi.com/services now.
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