BVI vs other offshore jurisdictions: there's a wide choice of offshore jurisdictions in which you may consider setting up a company. One major and popular option is the British Virgin Islands (BVI), a British overseas territory located just east of Puerto Rico, in the Caribbean. So how does company formation in BVI compare to other offshore jurisdictions you may choose?
Each offshore financial centre has different factors, benefits, advantages or trade-offs. There are, of course, a number of potential legal and tax benefits to offshore registration, such as low or zero tax, anonymity and asset protection. Your objectives and priorities may affect your choice of jurisdiction.
If you're considering whether to form a company in BVI versus another location, there are several main factors you should consider: reputation and popularity; legal and regulatory considerations; incorporation and renewal costs; processing times; and proximity to appropriate markets or banking facilities.
The cost to incorporate a company in BVI may not be the most important factor, but it's certainly worth bearing in mind. Charges for company registration in BVI with Coddan Ltd start at a very reasonable and affordable £650.00 for the first company incorporation package.
In terms of popularity, BVI is consistently top of the list by most measures. Panama and Belize are also popular jurisdictions. Reputation is a subtly different measure, referring to ideas of prestige and respectability. Again, BVI scores highly on this factor, although Hong Kong may have the edge.
As Hong Kong is one of BVI's main rivals for offshore company creation, it's worth taking a closer look at the differences between them. Unlike Hong Kong, BVI does not require annual financial reports, auditing, or a local secretary. A BVI business company, unlike a Hong Kong limited company, permits bearer shares, and it's generally slightly faster to register a company in BVI. On the other hand, BVI is not close to major trading hubs, so if this is an important factor for you Hong Kong may be a better fit for your needs.