The following is some information about the procedures for incorporation in the BVI and the basic features of the IBC.

The International Business Companies Ordinance was passed in August 1984. Since then it has been one of the major factors contributing to the success of the BVI as an offshore financial centre.

The British Virgin Islands are currently the world's leading offshore corporate domicile. There are currently over 300,000 IBC's registered and this figure increases by more than 2,000 companies per month. This is a major industry for this small and scenic part of the Caribbean.

An IBC is a corporate entity, which is totally exempt from BVI income tax and stamp duties. The IBC is very flexible by its nature making it an ideal corporate vehicle for international trading, asset protection, investment management, trustee arrangement and e-commerce.

The basic requirements for incorporation are:

• The words "Limited", "Corporation", "Incorporated", "Société Anonyme", "Sociedad Anonima" , or their usual abbreviations must be part of the name.
• The Government registration fees are:
  • US$300 for authorised share capital of less than US$50,000;
  • US$350 if authorised share capital consists of no par value shares
  • US$1,000 if the authorised share capital is greater than US$50,000.
    
• The memorandum of association must contain the name and address of the BVI registered agent.
• IBC's are prohibited from carrying on any business with persons residing in the BVI and from owning an interest in real property in the BVI.
• The following are not construed as carrying on any business in the BVI.
  • Maintaining a bank account.
  • Using the services of a professional firm.
  • Maintaining accounting records.
  • Holding meetings of shareholders and directors.
  • Holding a lease of property for use as an office.
  • Holding shares or other securities in another BVI company.
• In addition, IBC's
  • apart from being tax free, have other features which many offshore professional advisors and end user clients find to be attractive:
  • require only one founder, shareholder, and director . This may be a corporate entity.
  • require only one share as minimum issued and paid up capital.
  • may be issue bearer shares, as well as shares with variable voting rights
  • may acquire their own shares.
  • may denominate shares in any currency or issue shares with no par value.
  • may elect not to file any information with the Registrar of Companies relating to shareholders, mortgages and charges, deeds and other instruments of transfer.
  • may elect not to disclose any particular information on the Company's letterhead.
  • have the flexibility to re-domicile. Continuation into and out of the BVI are very simple procedures.
  • may elect not to prepare financial statements or appoint auditors.