Benefits of holding company incorporation in the British Virgin Islands: companies wishing to open a holding company in the British Virgin Islands can benefit from a range of generous provisions in the Caribbean country. The key benefits for such incorporation in the British Virgin Islands is that the offshore holding company will not have to pay any taxes at all, as the corporate tax rate for offshore holding companies is zero percent. There are also no capital gains tax, dividends tax, wealth tax or other levies, including inheritance taxes and death duties.
Holding companies set-up in BVI can benefit from high levels of confidentiality, as the details of directors, secretary and shareholders are kept entirely confidential and are not released. However, it's not required that a secretary be appointed and in fact only one director is necessary for BVI holding company registration, and that director can be a company.
In terms of operating a holding corporation based in the British Virgin Islands, the regulations are lax. There's no need to have an annual general meeting and indeed board meetings can take place anywhere in the world and can be by just telephone between the various parties.
There's also no need to file annual returns or accounts, there's no official auditing required and the accounts can be held in any country. The share capital of a holding company in the British Virgin Islands can be of any amount, and in any currency, including more than one, and the share capital does not have to be made known.
Another major advantage is that any amount of money can be transferred to the holding enterprise, as well as out of it, as there are no foreign exchange control measures. As the country has traditionally been enormously stable, the environment provides reassurance for those setting up holding companies in BVI.