Later today, i will introduce the bvi business companies amendment act, 2015. The act has been internationally recognised for its flexibility and. Important this is an unofficial consolidation of the bvi business companies act and the amendments thereto. The optimum amount of shares is 50000 shares with or without par value. Election center government of the british virgin islands. Mar 24, 2010 the bvi business companies act, 2004 as amended the act came into force on 1 january 2005 and after a two year transition period it completely replaced the international business companies act, 1984 the ibc act on 1 january 2007. Bvi iac 2016 rules british virgin islands international. In practice, the commonlaw remedies available in the bvi are.
The bvi business companies act, 2004 based on the bvi business companies act, 2004 no. Introduction since its enactment 20 years ago, the bvis international business companies act cap. The bvi bc act replaces the existing regimes, which govern the ibcs and the bvi domestic companies known as cap 285. The regulatory environment in the bvi shanghai, 9 november 3 private sector partnership and the bvi company ladies and gentlemen, this year is a very special one for the bvi. British virgin islands company law is primarily codified in the bvi business companies act, 2004, and to a lesser extent by the insolvency act, 2003 and the securities and investment business act, 2010. The bvi business companies amendment 18 march 2014.
The bvi international business companies act 1984 jeffrey kirk 15 august 2014 marked the 30th anniversary of the date that the international business companies act 1984 ibc came into force in the british virgin islands bvi. The definition of a bearer share is given in the ibc amendment act 2003, meaning a share represented by a certificate which states that the bearer of the certificate is the owner of the share. British virgin islands private trust company legislation. In 2016, bvi iac introduced a new, worldclass, set of administered arbitration rules. New legislation to replace companies act and ibc act. In june 2000, industry participators for the first time were informed about future changes in legislation and particularly about governments intention to amend the ibc act to restrict the mobility of bearer shares. The virgin islands constitution was introduced in 1976 with amendments in 1979, 1982, 1991, 1994, 2000 and 2007. The new act, entitled the bvi business company act, has been modelled on the territorys wellknown international business companies act, as amended, and includes several new features to expand its appeal to international investors and business professionals, while also providing a suitable framework. Jan 24, 2005 on 1 january 2005, a new company law regime came into effect in the british virgin islands. British virgin islands the bvi business companies act, 2004. Conversion of international business company into ordinary company 195. We also offer an offshore bank account options for all our company formations. You can see the text of the 1994 act in the egrey book of seychelles. This act may be cited as the international business companies act, 1984.
The bc act regulates the incorporation and operation of all types of bvi companies. International business compaues act ibc act introduced in 1984 paid a fitting tribute to the imp. The bvi business companies act 2004 does not require stating of any operational objects in the foundation documents of company. Prior to this change the only guidance on this point was a guidance note issued by the bvi financial services commission. British virgin islands offshore company incorporation. The cabinet, in exercise of the powers conferred under section 240 of the bvi. The regulatory environment in the bvi shanghai, 9 november. Insolvency act, 2003 british virgin islands financial services. The first companies legislation in the british virgin islands was the companies act, 1884. Government of the british virgin islands has stated that these provisions will not be brought into force until such time. In honour of this milestone, the bvi international finance centre bvi ifc, hosted a series of commemorative events, under the theme the ibc act 1984ahead of its time.
Vista trusts enable shareholders to establish a trust of his company that disengages the trustee from management responsibility and permits the company to operate as long as the directors think fit. Provisions of international business companies act not to apply. Despite of the new bvi legislation a lot of international service providers continue to use the traditional term ibc in regards to bvi business company. The bvi business companies act no 16 of 2004 is the principal statute of the british virgin islands relating to british virgin islands company law, regulating both offshore companies and local companies. Mar 18, 2014 the bc amendment act, and in turn the bvi business company regulations, 2012, the regulations sets out who is eligible to be appointed to act as a voluntary liquidator. It is common for overseas intermediaries to offer the service and in practice intermediaries often act as company secretaries and they keep documents including accounting documents. Conscious of how widely the earlier legislation had been copied by other tax havens, the bvi business companies act was drafted with a large number of forms and.
In this act, unless the context otherwise requires, 262005. In this act, unless the context otherwise requires, approved form means a form approved by the commission in accordance with section 241. The bvi business companies act, 2004 as amended the act came into force on 1 january 2005 and after a two year transition period it completely replaced the international business companies act, 1984 the ibc act on 1 january 2007. Register company in the bvi company registration bvi. Since the adoption of the bvis offshore statute in 1984 they have incorporated more than 600,000 business companies bc and remain one of the most popular destinations for offshore company.
Business company act, 2004 made by the bvi business companies amendment act, 2019 in force, 1 january 2020. But recent concerns about nonbvi law firms practicing bvi law, its likely negative impact on the local profession and on the financial services industry in the islands generally, not to mention the obvious risks inherent in individuals who are lacking the necessary expertise giving legal advice, put it to the top of the bvi governments agenda. Applicant means an individual who has applied for a licence pursuant to section 475 of the act. It replaced the extremely popular and highly successful international business companies act. Offshore company, being a flexible business structure, can be integrated into a wide variety of tax planning and asset protection arrangements. Subject to section 4872 of the act, the code of practice may provide for any matter specified in section 4861 of the act. According to the bvi ibc act of 1984 the offshore companies are exempted from all taxes for a period of 20 years. Confidentiality and secrecy confidentiality is one of the main benefits of bvi business companies and an important reason to have an offshore company in the british virgin islands. Effect of conversion of ordinary company into international business company 194. The bvi iac rules were developed in partnership with leading practitioners and draw on users feedback and international standards to further reinforce bvi iacs service to parties and professionals and ensure the bvi iac rules reflect the very best of modern practice in international. Bvi business companies act, 2004 schedule 2 section 248 transitional provisions part i preliminary.
Summary guide to the bvi business companies act, 2004. The act cancelled restrictions on doing business in the bvi, which existed for bvi ibc. Bvi companies meetingsbooksrecords ibc records and accounts do not have to be held or filed with the authorities. Using offshore company offshore company, being a flexible business structure, can be integrated into a wide variety of tax planning and asset protection arrangements. British virgin islands the bvi business companies act. Insolvency law in the british virgin islands bvi is almost entirely codified in the insolvency act 2003 and supplemented by the insolvency rules 2005. The elections act was introduced in 1994 with amendments in 1998, 2003, 2007 and 2011. The bvi business companies act does not require any minimum amount of capital expressed in monetary value. Companies incorporated under the international business companies act 1984. The british virgin islands bvi primary offshore company formation product is the offshore business company bc, also known colloquially as an ibc. First introduced by the international business companies act in 1984, bvi international business companies became a model for the industry, with other offshore centres copying the model widely. Gazetted 18th july, 1984 enacted by the legislature of the virgin islands as follows. Using offshore company british virgin islands offshore.
Court of appeal of the eastern caribbean supreme court will now be conducted in saint lucia on wednesday 4th march, 2020. The december 2001 enactment of the financial services commission act, 2001 established the british virgin islands financial services commission as an autonomous regulatory authority responsible for the regulation, supervision and inspection of all financial services in and from within the bvi. One of the most significant pieces of legislation to shape the global offshore finance sector reached its 30th anniversary on 15 august 2014. Antimoney laundering and terrorist financing code of. Development planning unit government of the british virgin islands central administration building road town, tortola british virgin islands tel. The act regulates the profession of nursing and midwives through a regulatory framework by a body known as the nurses and midwives council. Vistra is a global pioneer in international incorporations and corporate services, with experience in helping our clients navigate jurisdictions globally.
Summary guide to the bvi business companies act, 2004 o. International business companies act, 2016 editors note. The bvi business companies act is actually based upon a new zealand statute as opposed to the international business companies act, which was based on delaware corporation law. The new act, entitled the bvi business company act, has been modelled on the territorys wellknown international business companies act, as amended, and includes several new features to expand its appeal to international investors and business professionals, while also providing a suitable. In honour of this milestone, the bvi international finance centre bvi ifc, hosted a series of commemorative events, under the theme the ibc act 1984. Other services for offshore companies are affordably priced. Effect of conversion of international business company into ordinary company subpart iii conversion of noncellular company into protected cell company and viceversa 196. The act is considered by many professionals as the best of its kind, and in practice it works wonderfully, too. The bvi business companies amendment 18 march 2014 act 2012. In terms of individual statutes worldwide, one would be hardpressed to find an example of a similar law that has had. In 2014, the british virgin islands marked 30 years of success as a wellregulated global financial jurisdiction, due to the enactment of the international business companies ibc act, 1984.
Introduction since its enactment 20 years ago, the bvi s international business companies act cap. On 1 january 2005, a new company law regime came into effect in the british virgin islands. The international business companies act, 1984 was a statute of the british virgin islands which permitted the incorporation of international business companies within the territory. This amendment is the result of months of consultation between my government and industry stakeholders. Below is a summary of some of the important features of bvi ibc under the order. Bvi business companies regulations, 2012 british virgin islands. However the great leap forward for company law in the jurisdiction occurred in 1984 with the passing of the international business companies act, 1984. Legislation british virgin islands financial services. Proposals to introduce legislation in the british virgin islands the bvi to reform the regulation of the legal profession have been around for a number of years. British virgin islands the bvi business companies act, 2004 no. The bvi business companies 2004 as amended the act came into force on 1 january 2005 and after a two year transition period it completely replaced the international business companies act, 1984 the ibc act on 1 january 2007. New british virgin islands trust and estate legislation.
On 15 may 20 the following british virgin islands bvi statutes and statutory instruments came into force. International business companies act seychelles legal. The act is now the sole corporate statute in the bvi and regulates all. International business companies act means the international business companies act, 1984. Bvi ibc british virgin islands international business company is one of the most famous offshore legal entities offering a wide range of benefits to the offshore co. The bvi business companies act 2004 act makes provision for several types of companies. Thousands of major corporations use bvi companies for international business. Bvi business companies amendment act, 2015 the bvi business companies amendment act, 2015 and the bvi business companies amendment act 2016. It provides for the registration of nurses and midwives and enrolment of nursing assistants, and related matters.
The act itself was amended on several different occasions and subsequently was replaced with the bvi business company act of 2004. The act played in a huge role in the economic and financial development of the territory in the 1990s. An act to make provisions for the incorporation and operation of international business companies and related matters. The decision to replace the international business. The international business companies ibc act of the british virgin islands was first passed in 1984. Box 4649, road town tortola vg1110 british virgin islands t. In practice, the most commonly used bvi entity is the company. Bvi bc is allowed to conduct business with bvi residents and buy real estate property in the bvi. With intimate knowledge of international and local legislation, and compliance and regulatory issues, we can help clients stay on. All british virgin islands companies are governed by the bvi business companies act, 2004 the bca and are often referred to as business companies a bc. The act was modeled largely on the united kingdoms insolvency act 1986, but with a number of key differences. History of the international business companies act. The tax free company registration domain is the bvi but can be used anywhere.
The main principle of the ibc act 2003 is that the companies are allowed to issue bearer shares, but they must be kept by an authorised or recognised. No the international business companies act 1994 as amended does not require the appointment of a company secretary. Legislation government of the british virgin islands. British virgin islands offshore ibc confidentiality. The act is now the sole corporate statute in the bvi and regulates all bvi companies.
The bc amendment act, and in turn the bvi business company regulations, 2012, the regulations sets out who is eligible to be appointed to act as a voluntary liquidator. Using offshore company british virgin islands offshore ibc. Section 118 of the bvi business companies act, 2004 hereinafter referred to as the principal act is amended in subsection 2 by deleting paragraph b. Therefore, unless specifically required otherwise, the memorandum of association of the the bvi business company will state that there are no limitations to the business the company may carry on. The december 2001 enactment of the financial services commission act, 2001 established the british virgin islands financial services commission as an autonomous regulatory authority responsible for the regulation, supervision and inspection of. The amendments to the bvi business companies act, 2004. The british virgin islands bvi landmark international business companies ibc act gave rise to the bvis finance industry and created a successful model that was emulated in other jurisdictions. The 1984 introduction of the ibc and its successor, the bvi business companies act 2004, have paved the way for the bvi to become a global leading. In this schedule, the transition period means the period from 1st january 2005 to 31st december 2006. It has been called the most important piece of legislation in bvi history since the emancipation. Act means the insolvency act, 2003 and its subordinate legislation including the insolvency rules, 2004, the insolvency practitioners regulations, 2004 or the insolvency code of practice, as from time to time reenacted or amended. Prior to 1976 the constitution order was referred to as the.
In this briefing we discuss the creation of security interests over a bcs property. The same applies for the 2004 business companies act. Reduced or deferred tax liability and increased confidentiality are just two of the benefits which can be achieved by proper usage of an offshore company. The original act was copied widely by other offshore financial centres. This act was repealed and replaced by the international business companies act, 2016 with effect from 1 december 2016. The bvi international business companies ordinance 1984 as amended contains extended privileges and strict confidentiality requirements for the companies.
To date, the bvi evidently are the number one jurisdiction for incorporation of international business companies. The british virgin islands has approximately 30 registered companies per head of population, which is probably the highest ratio of any country in the world. Prior to 1976 the constitution order was referred to as the virgin islands emergency powers order 1967. The bvi company came into full effect on january 2005.