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Doing Business & Investing In...
BRITISH VIRGIN ISLANDS
T
he jurisdiction itself has built its own reputation for the past 25 years and has proven it will do what is necessary to enable business to thrive within the BVI. People can
rely on the BVI
The BVI has long been recognised as the ‘go-to’ domicile for the incorporation of offshore companies. There is no question that this can be attributed in large part to the basic tenet of the jurisdiction being tax neutral, highly cost efficient and offering a good degree of privacy within which to conduct business affairs.
BVI Benefits & System The BVI has a highly regarded legal system based on English common law and is home to the Commercial Court of the Eastern Caribbean Supreme Court which provides unparalleled legal access to practitioners. The legal framework is modern yet proven and trusted with prudent modern regulations. There is a stable political climate, orderly changes of Government demonstrate. There is a dedicated network of high quality sophisticated corporate and financial service providers based in the BVI. It is home to the full array of global offshore law firms and also all of the ‘Big 4’ accounting & audit firms, along with a very good range of niche and boutique service providers. It is OECD ‘white listed’ and is a member of IOSCO (International Organisation of Securities Commissions). It has also recently undergone another review by the IMF and has in large part been given a glowing report.
Products & Uses
The jurisdiction has for some time been seeking to add value to its core company product and indeed has created a number of successful complimentary products and
structures resulting in DOING BUSINESS & INVESTING IN THE
THE FOLIO GROUP CALUM MCKENZIE
The BVI is the leading jurisdiction for the incorporation of companies. The number of active companies is approximately 460,000 based on the 2014 Q4 statistics released by the BVI Financial Services Commission. The main single reason for this is the product… the BVI company is quick and simple to obtain/register, easy to use and understand – thanks to pragmatic, clear and simple legislation, recognized worldwide and historically a proven product.
business company in 1984, BVI companies have been used by individuals for traditional purposes such as trading, holding, contracting or uses such as succession and wealth planning. For corporate users BVI business companies are the vehicle of choice for those wishing to establish subsidiaries to fulfill a wide range of corporate and group functions at low cost and great efficiency. Such uses would include special purpose vehicles for one-off transactions, joint ventures, or other more general operations such as treasury functions or to provide access to foreign capital markets. However the maturation of the BVI as a jurisdiction means that the BVI is ideally placed to handle much more sophisticated types of business.
Investment Business: The BVI is the number two domicile in the world by number of registered mutual funds. In order to bolster this segment of the industry the Securities & Investment Business Act (“SIBA”) was passed into law in 2010 and created a legislative & regulatory framework governing the entire investment business industry (as opposed to simply mutual funds as per the 1996 Mutual Funds Act). SIBA in itself has done little to change the landscape of mutual funds business in the BVI (aside from codifying certain requirements which were previously imposed by the Financial Services Commission). However SIBA has created a regime for the licencing and operation of investment advisors, broker dealers, market makers and custodians where such activities were previously unregulated. SIBA also introduced a market abuse regime which provides protection for investors by criminalising insider trading, circulating misleading information and market manipulation.
more
sophisticated options for clients. In the main, since the creation of the original BVI
Insurance Business: In addition to the value added products available in the investment business sector, the BVI continues to be a popular domicile for insurance products most notably captive & re- insurance vehicles. However with the onset of more
demanding and discerning clients, the BVI now has service providers who are able to facilitate clients demanding products such as high net worth life insurance and specialty products such as professional indemnity insurance and directors & officers insurance.
The Future In conclusion it can be said that the BVI is placing itself well in the competitive world of finance. It has demonstrated over an extended period of time its ability to meet the changing demands of its customers and yet simultaneously enhance its products and reputation. The BVI is an ideal place to do business and will continue to be the leading choice for the discerning needs of the global financial community.
About the Author
Calum Mckenzie has worked in the offshore financial
services
industry for over 16 years. He has extensive experience and knowledge of fiduciary
services, including providing director and trustee services to entities varying greatly in terms of structural complexity, asset value and activity, more lately with a focus on providing services to hedge funds..
Email: calum@folioadmin.com Web: www.folioadmin.com