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BACKGROUND
Geographical Location
The British Virgin Islands consist of 60 islands and cays having a total land area of 150 sq km , the British Virgin
Islands are north west of the United States Virgin Islands and are separated by a channel only three miles wide.
The neighbour with the largest land area is Puerto Rico 60 miles to the west. Except for Anegada, which is a flat,
coral island with little soil, the Islands are hilly. Their greatest tourist attraction is their superb beaches,
since much of the land is covered with scrub timber and coarse grass and there are no forests or rivers. Geographic
coordinates: 18 30 N, 64 30 W.
Climate: subtropical; humid; temperatures moderated by trade winds
Population
The largest and most heavily populated Island is Tortola, which has about 19,156 (July 1999 est.) inhabitants.
The capital, Road Town, is on the southern shore near Sir Francis Drake Channel. Tortola is connected by a bridge
to Beef Island.
There are a 9,000 inhabitants who reside on the other islands 1,000 of which are in Virgin Gorda which is noted
primarily for its unusual and interesting scenery.
Religions: Protestant 86% (Methodist 45%, Anglican 21%, Church of God 7%, Seventh-Day Adventist 5%, Baptist
4%, Jehovah's Witnesses 2%, other 2%), Roman Catholic 6%, none 2%, other 6% (1981).
Political Structure
The British Virgin Islands were discovered by Columbus who is said to have been so impressed by their large
number that he named them 'Las Virgenes' in honour of St. Ursula and her 11,000 attendant virgins. During the 16th
and part of the 17th centuries the islands harboured Dutch and English Buccaneers. In 1672 Britain claimed Tortola.
Simultaneously, Denmark asserted her sovereignty over St. Thomas and St. John; then in 1773 she purchased St. Croix
from France. The Danish islands were sold to the United States in 1917 for $25 million. Relations between the United
States and British Virgin Islands are amicable. At present the British Virgin Islands is an internally self-governing
colony with a ministerial system of Government operating under a Constitution adopted in 1967. The Governor, appointed
by the Crown, remains responsible for defence and internal security, external affairs, the civil service, the administration
of the courts and finance. He continues to have reserved legislative powers necessary in the exercise of his special
responsibility. However, on other matters he is normally bound to act in accordance with the advice of the Executive
Council. This consists of the Governor as Chairman; two ex-officio members (the Attorney-General and Financial
Secretary); the Chief Minister, appointed by the Governor as the elected member who appears best able to command
a majority in the Legislative Council; the Deputy Minister; and two other ministers appointed by the Governor on
the advice of the Chief Minister.
The Legislative Council consists of a Speaker chosen from outside the council; two ex-officio members (the Attorney-General
and Financial Secretary); one nominated member appointed by the Governor after consultation with the Chief Minister;
and seven electoral districts. Elections are held at intervals of not more than five years.
Economy—overview: The economy, one of the most prosperous in the Caribbean, is highly dependent on tourism,
which generates an estimated 45% of the national income. In the mid-1980s, the government began offering offshore
registration to companies wishing to incorporate in the islands, and incorporation fees now generate substantial
revenues. An estimated 250,000 companies were on the offshore registry by yearend 1997. The adoption of a comprehensive
insurance law in late 1994, which provides a blanket of confidentiality with regulated statutory gateways for investigation
of criminal offenses, is expected to make the British Virgin Islands even more attractive to international business.
Livestock raising is the most important agricultural activity; poor soils limit the islands' ability to meet domestic
food requirements. Because of traditionally close links with the US Virgin Islands, the British Virgin Islands
has used the dollar as its currency since 1959.
Language
The official and spoken language is English.
Currency
U.S. Dollar
Exchange Control
None
Type of Law
Common
Principal Corporate Legislation
The Companies Act 1985; International Business Companies Ordinance 1984 (as amended); The Banks and Trust Companies
Act 1990
KEY FEATURES TABLE
| General |
| Political Stability |
Good |
| British Based Legal System |
Yes |
| Type of Company |
IBC |
| Disclosure of Beneficial Owner |
No |
| Migration of Domicile Permitted |
Yes |
| Tax on Offshore Profits |
Nil |
| Non-English Language Names Allowed |
Yes |
| Corporate Requirements |
| Minimum Number of Shareholders |
One |
| Minimum Number of Directors |
One |
| Bearer Shares Allowed |
Yes |
| Corporate Directors Permitted |
Yes |
| Secretary Required |
No |
| Standard Authorised Share Capital |
US$50,000 |
| Local Requirements |
| Registered Office/Agent |
Yes |
| Company Secretary |
No |
| Local Directors |
No |
| Local Meetings |
No |
| Government Register of Directors |
Optional |
| Government Register of Shareholders |
Optional |
| Annual Requirements |
| Annual Return |
No |
| Audited Accounts |
No |
| Recurring Government Costs |
| Annual Tax/Licence Fee |
$300 |
| Annual Return Filing Fee |
Nil |
COMPANY FORMATION
Type of Company for International Trading
International Business Company
Procedure to Incorporate
Submission of the Memorandum and Articles of Association and a Certificate from the Registered Agent confirming
compliance with the requirements of the ordinance.
Restrictions on Trading
Cannot Trade within the British Virgin Islands or undertake Banking or Insurance business. Cannot solicit funds
from the Public.
Powers of Company
A Company incorporated in the British Virgin Islands has the same powers as a natural person.
Language of legislation and corporate documents
English
Shelf Companies available
Yes
Time Scale to Incorporate
Same Day, but allow ten working days for receipt of documentation
Name Restrictions
Any name that is identical or similar to an existing company, or any name that suggests the patronage of the Royal
Family or the Government of the British Virgin Islands.
Language of Name
Whilst the Name of Company can be in any language, the documentation will be in English. Any name in a language
other than English, must be accompanied by a translation to ensure that the name is not restricted.
Names requiring Consent or a Licence
"Assurance", "Bank", "Building Society", "Insurance", "Trust"
or any name which in the opinion of the Registrar suggests the patronage of the Royal Family or the Government
of the British Virgin Islands.
Suffixes to denote Limited Liability
"Limited", "Corporation", "Incorporated", "Societe Anonyme", "Sociedad
Anonima" or the relevant abbreviations.
Disclosure of Beneficial Ownership to Authorities
No
SHARE CAPITAL, TAXATION, LICENCE FEES AND COMPLIANCE MATTERS
Authorised Share Capital
The Normal Authorised Share Capital is $50,000 with all of the shares having a par value.
Classes of Shares Permitted
- Registered Shares
- Bearer Shares
- Shares of no par value
- Preference Shares
- Redeemable shares
- Shares with or without voting rights
Bearer Shares Permitted
Yes
Taxation
An International Business Company does not pay any tax on its worldwide profits to the British Virgin Islands
authorities.
Double Taxation Agreements
The British Virgin Islands only has treaties with Japan and Switzerland.
Licence Fees
A Company incorporated between 1st January and 30th June in any one year pays its licence fees on or before
the 31st may in the year following incorporation and then annually. A Company incorporated between 1st July and
31st December in any one year pays its licence fees on or before the 30th November in the year following incorporation
and then annually.
Companies with an Authorised Capital up to $50,000 pay $300.00 per year, and Companies with Share Capitals in
excess of $50,001 pay the sum of $1,000 per year. Companies with a Share Capital that does not exceed $50,000 and
having some or all of its shares with no par value pay the sum of $350 per year.
Financial Statement Requirements
Whilst there is no requirement to file Audited Accounts with the authorities, a Company is required to keep
financial records which reflect the financial position of a Company.
STRUCTURE OF MANAGEMENT
DIRECTORS
Minimum number of Directors
One
COMPANY SECRETARY
Company Secretary Required
Yes
SHAREHOLDERS
Minimum number of Shareholders
One
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