What documents are needed to open a company in the British Virgin Islands?
The British Virgin Islands is one of the prime locations for international business. As an offshore jurisdiction, it offers a faster incorporation process and less stringent requirements to the applicants. With zero taxation and a high level of privacy for local business owners and shareholders, the BVI is worthy of your attention. How to start? Which documents are required to BVI company formation? Let us break them down point-by-point.
What is the basic registration process for a company in the BVI?
Like in many other offshore jurisdictions, the basic company structure for BVI Company Formation is an International Business Company (IBC). However, in the British Virgin Islands, it is substantially cheaper, and the incorporation fees are bearable. The process starts with careful planning, during which you must select your future company’s name and form a network of shareholders. Before submitting your application to the BVI authorities, you will have to collect a basic set of legal documents to proceed.
What initial documentation is required to begin?
In order to start forming an International Business Company in the BVI, it is enough to provide the regulator with a basic set of documentation. It includes the company’s name and a brief description of planned activities. Then, you must also provide copies of identity documents of the company’s owners and shareholders, as well as proof of residence for each. At the moment, the jurisdiction does not impose the share capital requirement on legal entities seeking registration in the BVI company formation.
What specific identification documents are necessary for the beneficial owners?
The local regulatory regime in the BVI requires the disclosure of identity information of every company’s beneficial owners. As proof of identity, a government-issued ID can be presented. Oftentimes, passports are used, but all types of identity documents must contain a photograph. These requirements are necessary to maintain a clear and transparent profile of every BVI company owner.
What proof of address documents are required for the beneficial owners, directors, and shareholders?
Even though the British Virgin Islands do not require company owners to be local residents, proof of address is still required during the company formation process. This is part of the KYC verification process, and KYC compliance is among the most important things for successfully forming a BVI company. As proof of residential address, the regulator accepts government-issued documents, such as driver’s licenses, bank statements, or utility bills. These documents should be fairly recent and issued within the last 3 months.
What is the role of the Registered Agent in the BVI company formation process? What documents do they require?
A Registered Agent plays the role of an intermediary between the registered company and the BVI government. This person actively participates both in the initial company formation and its ongoing compliance. They have strong obligations to monitor the AML-CFT and KYC compliance of the company, as well as perform due diligence on its key figures, and report to the government on a regular basis. Registered Agents collect due diligence documents, such as IDs, proof of address, and information on the source of funds from beneficial owners, directors, and shareholders.
Are there any specific requirements for the company’s name, and how is the name availability checked?
For an International Business Company in the BVI, a name should be unique and registered for the first time. Besides, it must not be misleading or contain any of the prohibited terms. Mind that specific terms can be restricted by the regulator or require an additional approval. Normally, you should pick 2-3 options for the company’s name before sending out the application. Before the name is submitted, your Registered Agent verifies its availability through the BVI Financial Services Commission (FSC) online system.
What due diligence documentation is required to comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations in the BVI?
Like all reputable offshore jurisdictions, the British Virgin Islands comply with international AML and KYC compliance standards. As a result, all companies applying for registration in the BVI must prove their compliance with AML-KYC first. For this, the so-called due diligence procedure (or check) is conducted. During due diligence, the identities of all beneficiaries, shareholders, directors, and key employees are verified, as well as proof of address for each and proof of the source of income (for beneficial owners and shareholders). The Registered Agent also closely monitors all the ongoing transactions of the company and stays alert to promptly notify the government of any suspicious activity that might occur.
What is the process for filing the necessary documents, and what are the associated government fees and timelines?
Normally, the Registered Agent handles the filing of all the required documents to the BVI FSC. For this, the FSC offers a comprehensive online system. As for the government fees, they depend mostly on the company type you intend to register and the services required for its proper functioning. The timeline in which the incorporation can be done is significantly sped up by the existence of a Registered Agent. We highly recommend hiring a legal professional with experience in BVI company formation before you move on to collecting the required documentation and presenting it to the legislator.
