Premium BVI companies economic substance tricks today? The Law ‘On Companies’ from 2004 is the main legislative act regulating the activities of the BVI-registered offshore companies. The amendments to the Law passed in 2019 make the information about the company beneficiary owners open to the public but tax exemptions are still available and the reporting requirements are lax. Since January 1, 2019, the Law ‘On Economic Substance’ has been in effect. It is aimed at combating the practice of registering shell companies in such spheres as insurance, banking, finance management, leasing, shipment, and so on.
Banking Business has the meaning specified in section 2(1) of the Banks and Trust Companies Act, 1990, to wit: “banking business” means the business of accepting deposits of money which may be withdrawn or repaid on demand or after a fixed period or after notice, by cheque or otherwise and the employment of such deposits, either in whole or in part, (a) in making or giving loans, advances, overdrafts, guarantees or similar facilities, or (b) the making of investments, for the account and at the risk of the person accepting such deposits.
Continuation: The BVI BC Act establishes that a company, which desires to continue its operations under the jurisdiction of the BVI, will have to file satisfactory evidence that the law of the foreign country allows the migration of the company. Economic Substance Act: The BVI (“the British Virgin Islands”), along with other major offshore jurisdictions, introduced the Economic Substance Law. The BVI Economic Substance (Companies and Limited Companies) ACT, 2018 came into effect on January 1, 2019. Companies incorporated as of January 1, 2019, must comply immediately with the law. The transition period extended until June 30, 2019, to entities established before January 1, 2019. This in response to the various efforts of the European Union (“EU”) and the Organization for the Economic Cooperation and Development (“OECD”) to improve fiscal transparency. Corporate Requirements: Name: BC names must contain the words Corporation, Incorporated, Sociedad Anónima, Societé Anonyme, Limited, or their abbreviations. Chinese names together with their English translation can be registered in the BVI. Numbers are permitted as part of the company name as well as foreign characters. Read extra info on BVI companies.
If you aim for the former group, you should consider everything carefully. Some no-tax jurisdictions are changing their policies fast. They are starting to impose taxes and regulations on certain kinds of income and business activities. And some places have a really bad reputation in the business world. These are the ones you should avoid. Bad-reputation jurisdictions would cost you a hard time opening a bank account and running your company. In particular, banks in Singapore or Hong Kong are very concerned about opening an account for companies in tax havens. The same goes with customers and clients. They would also be concerned to do business with your company if it is incorporated in such jurisdictions.
OMC Group specializes in the provision of corporate, fiduciary and administrative services from recognized jurisdictions around the world. Since 1955 we have been servicing leading financial institutions with a commitment to develop longstanding relationships. OMC will offer a full range of company formation services in the most recognized jurisdictions including Anguilla, Belize, Bahamas, BVI, Cayman, Hong Kong, Nevis, Panama, Delaware USA, Seychelles, among others. We invite you to partner with us and join the ranks of those who have already benefited from the world-class service rendered by our reliable workforce. Discover extra info at https://www.omcgroup.com/.