How are BVI companies used in Asia?
Over the past 25 years, the BVI has become a tried and tested conduit for overseas capital entering Asia, offering tax efficiency, legal certainty, and general ease of doing business. Investors benefit from British-based law, a wide pool of professional service providers, local creditor friendly legislation, and an effective judicial system of registering charges.
Example: Using BVI Companies
Offshore 2020 Report (2014)
“A group of international investors identifies a Chinese infrastructure developer that needs capital for a series of projects. They set up an international business company in the BVI as a holding structure and deposit the money, supplementing it with bank loans. The funds are then routed to the Chinese developer and the projects get up and running. Profit travels back to the BVI structure in the form of dividend payments that are distributed among the investors.”
How do I incorporate a BVI Company?
With more than one million total incorporations and about 5000 new companies registered every month, the BVI is by far the most popular offshore company domicile. The BVI’s outstanding offshore corporate legislation with the BVI Business Companies Act offers a unified type of company - a BVI Business Company. The BVI Business Company provides brand familiarity, flexibility, cost-efficiency, ease of use and versatility.
BVI companies can also be registered using company names with Chinese characters.
To incorporate your own BVI company, a registered agent must apply to the Registrar of Corporate Affairs on your behalf. An easy, simple and straightforward process shown below will be followed:
The registered agent will file a completed application form at the Registry of Corporate Affairs together with:
- The memorandum and articles of association (and up to 3 copies).
- The agent’s consent to act as registered agent.
If the Registry is satisfied that everything is in order, it will:
- Register the documents.
- Allot a unique number to the company.
- Issue a certificate of incorporation to the registered agent.
- Return the copies of the memorandum and articles stamped with the Registry seal.
Within one working day of the application being received by the Registry, an ordinary company limited by shares should be incorporated, provided that the paperwork is correctly completed and there is no problem with the name chosen. The company is incorporated with effect from the date specified in the certificate of incorporation. It will have the name specified on the certificate.
The fees for incorporating a company (limited or unlimited) by shares are as follows:
- Where the company is authorised to issue no more than 50,000 shares………………………………………$450.00
- Where the company is authorised to issue more than 50,000 shares……………………………….....………$1,200.00
A company will also have to pay an annual fee of the same amount, commencing in the year after its incorporation.
The annual fee is payable:
- On 31 May each year if the company is incorporated between 1 January and 30 June;
or - On 30 November each year if the company is incorporated between 1 July and 31 December.
To partner with a registered agent, please click the link directing you to “Find a practitioner” in our website listing all the currently effective registered agents at the BVI Registry:
http://www.bvihouseasia.com.hk...
To check out how to become a licensee, please click here.
