British Virgin Islands
(BVI)
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Capital:
Road Town
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Population:
22,000 (est. 2003)
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Languages:
English (official)
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Area: 153
sq. km (land area)
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Currency:
United States dollar (USD)
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Fiscal year:
1 April - 31 March
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Independence
status: overseas territory of the
UK
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BACKGROUND
BRITISH VIRGIN ISLANDS ("BVI") is
a group of islands & islets located in Caribbean.The
BVI have the basic offshore financial centre
attributes: stable, capitalistic government,
good communications, an educated population,
no exchange controls, and a tax and regulatory
climate that encourages offshore activity. The
country is a British Dependent Territory, with
locally elected members and a Governor appointed
by the British Crown. The economy, one of the
most stable and prosperous in the Caribbean,
is highly dependent on tourism, Livestock raising
is the most important agricultural activity;
poor soils limit the islands' ability to meet
domestic food requirements.A stable and established
political structure is essential to the continued
success of any offshore financial centre.
Legal System
The BVI is a British Crown Colony with its corporate
law based on the English common law. The Islands
are self-governing, with a Governor who charis
the Executive Council. There is also a Legislative
Councial and a judicial system that is under
the direction of the Eastern Caribbean Supreme
Court with final appeal to the Privy Council
in London, England.
Currency
There are no exhange controls in the BVI and
corporations may transfer fund with complete
freedom. The main currency is the US dollar
and many international banks operate branches
in the BVI.
Confidentiality
Unlike the majority of offshore centres, the
British Virgin Islands offer the discretion
of not having to disclose the beneficial ownership
of companies to any authority or person in the
British Virgin Islands. Furthermore, as seen
earlier, British Virgin Islands IBC's have the
power to issue bearer shares.
Taxation
International Business Ordinance was introduced
in 1984. This provides for the incorporation
of companies exempt from BVI taxes. The success
of the financial sector in the British Virgin
Islands (BVI) is due almost exclusively to its
role as the world's leading jurisdiction for
international business companies (IBCs).Double
Taxation Agreements between the United Kingdom
and Japan and Switzerland extend to the British
Virgin Islands but do not generally apply to
IBC's.Hong
Legislations
The BVI Government has announced that the International
Business Companies Act requires all bearer shares
to be held in the custody of either an “authorised”
or “recognised” custodian and for bearer shares
to be immobilized. It also provides for companies
to amend their memoranda of articles of association,
which currently give an IBC the power to issue
bearer shares. The laws affecting the operations
of the company includes following Acts:-
