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Company formation British Virgin Islands
The British Virgin Islands refers to an archipelago of about 60 islands east of Puerto Rico in the Central Caribbean. However, only 10 islands are inhabited with about 21,000 inhabitants. Road Town, the capital with about 9,000 inhabitants forms the seat of government of the British Crown Colony. Therefore, the national parish is English. The US dollar is the universal means of payment.
International Business Company (IBC) based in the British Virgin Islands
The British Virgin Islands, also known as British Virgin Islands, is one of the most popular countries for offshore start-ups. The country is characterized by political and economic stability and is often used by investors as a tax haven. Establishing a company requires only a minimum of administrative work and is feasible even with low start-up costs. Furthermore, the entry in the company register is done quickly.
Double taxation agreements:
The double taxation agreement exists with Denmark, Norway, Sweden, Switzerland and Japan.
The biggest advantages of the British Virgin Islands
- Cheap start-up costs
- No mandatory minimum capital
- Fast registration in the company register
- Protection of assets by limitation of liability to the (low) share capital
- Tax incentives
- Tax exemption of your company as long as there are no transactions in the British Virgin Islands
- No exchange control
- Disclosure of financial statements or balance sheets
The biggest mistakes when starting a business abroad
Many agencies and law firms do not advise comprehensively or wrongly. Learn what to look for.
Gravity of the situation
Often, these law firms think foreign companies are half-silk, tax evasion is favored and mailbox companies are the leaders rather than the exception. This is true, however, only in some start-up agencies that do not have the necessary expertise. Self-proclaimed law firms that do not employ tax accountants or lawyers usually set up companies that are unlikely to operate legally. We set up and look after companies that can withstand tax audits and that are legally operated.
Do you have to live in the country where you start a company?
You can set up a company worldwide, as long as the respective country allows you as a foreigner to acquire shares in local companies or to act as a managing director. If this is not the case trustees can be used. For example, Cyprus allows every EU citizen to own and run a business. Nevertheless, trustees can be used for the purpose of identity protection. However, it is important that the management takes place locally, in the country in which the company is to be taxable. In addition, a permanent establishment must be set up. Without these, a major tax offices around the world do not recognize the company and in the worst case would require additional payment of corporate and business taxes plus late payment surcharges. We rent you a real office and set up a permanent establishment that meets all requirements beyond doubt.
Problematic Law firms: Secrecy is not regarded.
Some law firms bind customers with toggle contracts and exert pressure when the customer wants to close his company. If you are a client of a law firm that has established a legally flawed company, they can be blackmailed. Because in the case of a fiscal problem, law firms without a license are not bound by a duty of secrecy.
Migrating to a different law firm
We receive many inquiries from customers who already own a foreign company and are looking for a new law firm. The process of changing law firm is made often difficult on purpose. Therefore, we have developed a principle of trust. If you are not satisfied with us and want to change, you can do that at any time. The necessary documents (resignation letter), you receive from us standardized after founding. You are therefore protected against unexpected costs and you are free at any time to visit another law firm. So far we have not lost any customer to another law firm.
Privacy / Firm Location
Your accounting documents are kept safe with us. In addition, all electronic data is stored encrypted and accessible only by us, which are bound to a professional secrecy. All accounting records are also stored locally only. Neither authorities nor hackers are able to access this data.
There are quite a few locations in the world that do not charge taxes on companies or individuals, or only estimate a very low flat rate tax. But this can rarely be used without corresponding change of residence. If you are a resident of any major country, the relevant double taxation agreement is decisive. Providers who promise otherwise lead them to tax evasion, which in the case of discovery usually punishes severely. We advise against setting up companies in countries that have already been blacklisted by the OECD. The foundation is usually very cheap, but the tax consequences in your origin country can be devastating. Since the introduction of the automatic exchange of information between almost all major countries, an anonymous private account no longer exists.
We comply with the following code:
- Legally secure foundations
- No unexpected(hidden) costs
- No false promises
- Finding the right solution by focusing on your requirements
With this strategy, we have been on the market since 2013 and have not disappointed any customer so far. And we prioritize it in keeping that way. We strive to ensure that every client is satisfied and does not take risks with the solutions we provide for them, but only exploits legal opportunities. Starting a company that involves doing real business is more costly than a letterbox company, but it is the only way to save on taxes without risking legal action.
Regeln für eine Offshore- Gesellschaft auf den British Virgin Islands
- Company headquarters must be in the British Virgin Islands
- Company director does not necessarily have to be a local resident
- Company name must be used in Latin script
Restrictions in the field of activity
Not permitted are insurance, fund or asset management and banking. Furthermore, the company may not advertise or otherwise promote stock sales. Also, no registered offices in the British Virgin Islands may be offered.
Tax burden in comparison
Erfahren Sie anhand dieser Beispielzahlen wie hoch der Unterschied in der Besteuerung einer deutschen GmbH zu einer Onshore Gesellschaft und einer Offshore Gesellschaft auf den British Virgin Islands ist.
|Belgian Limited (SPRL/BVBA)||Malta Limited (Ltd.)||Onshore companies|
|Profit||100,000 EUR||100,000 EUR||100,000 EUR|
|Corporate tax||33% including. surcharge tax rate 3% Totally 36,000 EUR(36%)||5,000* EUR (5%) Effectively reduced from 35%||15.000 EUR (15%)|
|Profit after taxes||64,000 EUR||95,000 EUR||85,000 EUR|
|Key advantages||Strong economy, highly reputed country||Stable and growing economy, high anonymity, low start-up capital||Stable and growing economy, high anonymity, low start-up capital|
|Tax burden||36,000 EUR||5.000 EUR||15.000 EUR|
Founding a company - That's how it works
Establishing a company in the British Virgin Islands is easy and the founder does not have to travel there. For the foundation only a certified ID or passport copy and a power bill is needed. Depending on the choice of bank also a short CV or bank reference.