Online News Sources
Virgin Islands Newspaper: www.virginislanddailynews.com
Platinum News Online: www.bviplatinum.com
Business Environment
British
Virgin Islands legislation allows international business companies,
banking and trust business, Insurance or re-insurance business,
partnerships, and company management.
Under the
International Business Corporations Act 1984, international companies
are authorised to reacquire and reissue their own share; issue shares
for consideration other than cash, with or without par value,
denominated in any currency; have only one subscriber and only one
shareholder; have a single directorate; have corporate directors or
shareholders; hold shareholders' or directors' meetings, and maintain
books of account, records and minutes outside the jurisdiction. There
is no statutory requirement to hold annual general meetings.
There
are no requirements to file organisational or accounting information
with the Registrar of Companies. A memorandum of articles of
association must be filed with the registrar. Share registers are
available for inspection only by registered shareholders or by order of
a British Virgin Islands court. There are no disclosure rules or
minimum capital requirements. International business companies are not
authorised to conduct business with residents, or local companies, or
own land. Registration must be done through a local registration agent.
General
and limited partnerships are registered under the Limited Partnership
Act, 1996 and regulations. The act contains many of the provisions of
the UK Partnership Act, 1980. However, in some parts addressing limited
partnerships, the act follows to a large extent the American pattern of
modern limited partnership legislation, specifically that enacted in
Delaware. The limited partnership regulations cover general
partnerships, including citation clauses, rules for partnerships, a
partners' company code of conduct with clients, partners conduct
amongst themselves, dissolution of a partnership, provisions for
limited partnerships and legal assistance from the courts. Limited
partnerships are classified into local limited partnerships and
international limited partnerships. Limited partnerships are prohibited
from carrying on banking business, insurance business or the business
of company management unless licensed or exempted from being licensed
as such. International limited partnerships are subject to requirements
similar to those of international business companies.
The Banks and Trust Companies Act of 1990 defines three categories
of bank licenses: General, Class I restricted, and Class II restricted.
Holders of general banking licenses must have a minimum paid up capital
of US$2 million and must deposit the sum of US$500,000. The annual fee
is US$20,000. Holders of Class I restricted licenses may not take
deposits from or make investments in or with any British Virgin Islands
resident except with another licensee or with an international business
company. The minimum paid up capital requirement is US$1 million and
the minimum deposit requirement is US$500,000. The annual fee is
US$16,000. Holders of Class II restricted licenses have the same
restrictions as a Class I restricted licence, but can only receive
funds from undertakings named in the license. The minimum paid up
capital requirement is US$1 million and the minimum deposit requirement
is US$500,000. The annual fee is US$16,000.
The Mutual Funds Act 1997 requires that all mutual funds must be
either a registered public fund or recognised non-public fund. Any
person who provides management or administrative services to a mutual
fund must be licensed. The act applies to all British Virgin Islands
incorporated entities and includes mutual funds formed as trusts and
partnerships. The act defines mutual funds as public funds (further
classified as 'ordinary, or 'selective' public funds), private funds
(funds sold to no more than 50 investors or offered for sale on a
private basis), or professional funds (funds sold to professionals or
individuals with a net worth over US$1 million).
Insurance companies are governed by the Insurance Act 1994 the Insurance Regulations1995.
Government has passed legislation restricting the transferability of
bearer shares by mandating that they must be held by an approved
custodian within a licensed financial institution and be subject to
anti-money laundering and customer due diligence. The jurisdiction is
classified as a British port of registry and any vessel registered in
the jurisdiction has the right to fly the British flag. For a vessel to
qualify to be flagged under the British flag, the owner of the vessel
must be either a British subject or a British entity. Registration of
an international business company in the jurisdiction allows a
non-British subject to register a vessel under the British flag.
The British Virgin Islands was not on the Financial Action Task
Force's blacklist as 'non-cooperative' in preventing money laundering.
In February 2002 the jurisdiction signed a letter of commitment with
the Organisation for Economic Co-operation and Development agreeing to
exchange information with overseas authorities in criminal tax matters
by 31 December 2003 and in civil tax matters by 31 December 2005.
Taxes
Corporations
registered under the IBC Ordinance are exempt from all local taxes and
stamp duty asset security. There are no inheritance taxes, death
duties, capital gains, capital transfer, or estate taxes. Dividends are
neither subject to withholding, or income tax requirements. Interest is
also exempt from tax when paid to non-residents, provided the rate of
interest is considered reasonable. Where applicable a company’s tax
rate is 15% of income. Resident companies are subject to tax on their
worldwide income less deductions. Non-resident companies are subject to
tax only on income remitted to, or derived from the jurisdiction. The
tax rate is reduced to 1% on profits for resident companies that obtain
90% or more of profits from trading outside the jurisdiction. Companies
are taxed at 1% on foreign investment income if the income is exempt
from tax in the jurisdiction in which it arises. Customs duties varies
from 5% to 20%. For individuals gross income is taxed on a scale
graduated from 3% to 20%.
Key Contacts
Registry of Companies, Trademarks & Patents
Government of the British Virgin Islands
PO Box 418
Road Town, Tortola
British Virgin Islands
Tel: 284 494 5355 or 284 494 5356
Fax: 284 494 6331
Email: compreg@fsdbvi.org
Director of Financial Services
Ministry of Finance
Pasea Estate, Road Town, Tortola
British Virgin Islands
Tel: (284) 494 6430
Fax: (284) 494 5016
Financial Services Commission
Haycraft Building, Pasea Estate
Road Town, Tortola
British Virgin Islands
Tel: 284 494 1324
Fax: 284 494 9399
Email: commissioner@bvifsc.vg
Website: www.bvi.org
Inspector of Banks, Trusts & Company Managers
Financial Services Department
Government of the British Virgin Islands
Pasea Estate Road Town, Tortola
British Virgin Islands
Tel: 284 494 6430
Fax: 284 494 5016
E-mail: commissioner@bvifsc.vg
Registrar of Mutual Funds
Financial Services Department
Government of the British Virgin Islands
Pasea Estate
Road Town, Tortola
British Virgin Islands
Tel: 284 494 6430
Fax: 284 494 5016
E-mail: finsvs@candwbvi.net
Key Stats
Status: The British Virgin Islands is a British overseas territory.
Population (July 2005 estimated): 22,643 (of which 51% are non-nationals)
Capital: Road Town
Currency: The US dollar is the official currency
Legal System
Based on the British common law system with local
variations. Justice is administered by the Eastern Caribbean Supreme
Court. A resident puisne judge presides over the High Court, Admiralty,
and associated courts. There is a Court of Appeal. Final appeals go to
the Privy Council in the UK.
Government
British overseas territory. Representative democracy
with internal self-government. The British monarch is the head of state
represented by a UK-appointed governor who is responsible for the
courts, the public service, the police, and foreign affairs. Parliament
is made up of an Executive Council and the 15-member Legislative
Council. The Legislative Council is made up of 13 elected members, an
appointed ex officio member, and a speaker chosen from outside the
council. Members of the Legislative Council are elected for a maximum
of four years via a mixed system of nine districts and four
country-wide districts. The governor presides over the Executive
Council, made up of the chief minister who is appointed by the governor
from the majority party, three ministers appointed from the Legislative
Council by the advice of the chief minister, and the Attorney-general
(ex officio).
Executive
The Head of State is Queen Elizabeth II represented by the UK-appointed governor.
Governor Thomas Macan
Chief minister: Orlando D. Smith (since June 2003)
Politics: The National Democratic Party won the May 2003 elections,
taking eight seats. The Virgin Islands’ Party won five seats.
Political Parties: National Democratic Party (leader Orlando
Smith);The Virgin Islands’ Party (leader Ralph O’Neal); Concerned
Citizens' Movement (leader Ethlyn Smith); United Party (leader Gregory
Maduro).
Economy: The economy, one of the most stable and prosperous in the
Caribbean, is highly dependent on tourism, generating an estimated 45%
of the national income. An estimated 350,000 tourists, mainly from the
US, visited the islands in 1998. Tourism suffered in 2002 because of
the lackluster US economy. In the mid-1980s, the government began
offering offshore registration to companies wishing to incorporate in
the islands, and incorporation fees now generate substantial revenues.
Roughly 400,000 companies were on the offshore registry by yearend
2000. The adoption of a comprehensive insurance law in late 1994, which
provides a blanket of confidentiality with regulated statutory gateways
for investigation of criminal offenses, is expected to make the British
Virgin Islands even more attractive to international business.
Livestock raising is the most important agricultural activity; poor
soils limit the islands' ability to meet domestic food requirements.
Because of traditionally close links with the US Virgin Islands, the
British Virgin Islands has used the dollar as its currency since 1959
Gross Domestic Product: US$2.498billion (2004 est)
Inflation: (2003) 2.5%
International Organisation Participation:
Caricom (associate), CDB, Interpol (subbureau), IOC, OECS (associate),
UNESCO (associate), UPU
Public holidays (2005)
1 January (New Year), 3 January (New Years
Holiday) 14 March (Commonwealth Day), 25 March (Good Friday), 28 March
(Easter Monday), 16 May (Whit Monday), 11 June (Queen’s birthday), 1
July (Territory Day), 1 August (August Festival), 21 October (St.
Ursula’s Day), 25 December (Christmas), 26 December (Boxing Day).
Time zone
GMT minus 4 hours. There is no summer time clock change.
Financial year: 1 April – 31 March
Restaurant Guide
Brandywine Bay
Sir Francis Drake Hwy
East of Road Town
Brandywine Bay, Tortola
Ph: 284 495 2301
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