A Forex trading license is needed by brokers and companies that intend on trading on the foreign exchange market. This license is also needed for a BVI offshore company that will engage in trading currencies.
Our agents can help investors obtain a BVI Forex trading license and start their trading activities as soon as possible.
Forex trading requirements in BVI
BVI companies that are involved in trading on the foreign exchange market need to apply for and operate under a Forex broker license. A few requirements are in place for this type of licensed activity and the main one is that investors will need to open a BVI offshore company. The steps are described below:
- incorporate a BVI company: the BVI company set up process is a simple one that begins with selecting an available business name.
- open a bank account: once the legal entity is incorporated, our agents can help you open a bank account in BVI.
- establish an office: companies that operate via a forex trading license are required to maintain a local office in BVI; a minimum capital is also required.
- license application: we will help you submit the license application for your company once it is registered; together with the application, a license application fee will also be paid.
Our agents can assist you throughout the licensing process. You can reach out to us to find out more about the Forex licensing requirements and fees.
Our attorneys can give you more information about the licensing laws and regulations. We provide legal services in many areas of interest and are also able to represent our clients in court or act as an attorney-in-fact. Reach out to our lawyers in BVI for information on our services concerning business law, employment regulations, intellectual property laws, real estate, litigation, and more.
Regulations for Forex trading in the BVI
The BVI Financial Services Commission is the one that issues the regulations for forex trading. The Commission is the only regulatory agency that operates in the British Virgin Islands for the financial services sector. It is responsible for authorizing and licensing companies that engage in the financial sector.
One of our BVI company incorporation agents can help you with complete information about the ongoing requirements for forex trading licensing as expressed by the Commission.
How to open a Forex company in BVI
BVI company formation is a straightforward process that can be handled by investors, including those who are unable to travel to the Islands and remain here during the entire process.
The company formation process can last a few business days and investors are advised to seek the services provided by a team of local company formation agents, such as our BVI incorporation experts.
| Quick Facts | |
|---|---|
| Forex broker obligation in BVI | A license is required and a BVI company must be used to apply |
|
Forex broker licence in BVI for foreign brokers |
The license is obtained through a BVI company, not individually |
|
BVI Forex licence issuing authority |
The BVI Financial Services Commission (FSC) |
| Relevant laws governing brokerage | The Securities and Investment Business Act and others |
| Special license for brokers |
As issued by the FSC |
| Laws to be observed for licensing |
The BVI Securities License requirements, as well as other laws |
| Conditions for licensing |
Meeting the capital requirements for the BVI legal entity through which the application is made |
| Management requirements |
At least two directors and one shareholder |
| On-site inspection for licensing |
Possible on a case-by-case basis |
| Application documents | Corporate documents for the company, as well as documents for the individual who will act as the broker |
| Broker dealer application fee |
$1,000 |
| Capital requirement for the BVI company |
Can start at $100,000 |
| Preliminary steps |
An initial discussion can take place with the Commission, prior to submitting the application |
| Forex broker licence issue time (approx.) |
3 months |
| Reasons to apply for a Forex broker licence in BVI | Minimum taxation, confidentiality, as well as the ability to schedule the company’s annual meetings outside BVI |
The steps required to open a Forex company in BVI are briefly summarized by our experts:
- Choose the type of company: the International Business Company is commonly used, however, incorporating other business forms is also possible;
- Reserve the name: all companies need to have a unique business name; its availability can be checked in advance;
- Appoint the agent: the BVI company is required to have a registered agent; he will be the one to take over the preparation of the documents and the subsequent steps; this is why the appointment is made early on;
- Prepare the documents: the company’s constitutive documents, its Articles of Association, are prepared and, along with other supporting documents, are submitted to the Register;
- Post-registration: open a bank account and obtain the relevant license.
The steps above are the general ones used to register a BVI company. The licensing phase will be the distinct one for those who wish to open a Forex company in BVI.
Our of our BVI company formation agents can act as your registered agent. This also means that we are able to handle the document preparation phase, provided that our clients send us the mandatory documents for the identification of the company shareholders and directors.
Opening a bank account takes place once the legal entity is registered with the authorities and our agents can also represent you during this stage.
You can reach out to us to find out more about the services we provide.
BVI company requirements and compliance
A company in the British Virgin Islands is subject to few reporting requirements, however, several conditions apply for its management and control.
Investors who open a Forex company in BVI observe the following requirements:
- the company will have one director, one shareholder and one registered agent;
- -the business entity will maintain a register of beneficial owners and a register of member; however, these do not need to be filed with the Registrar; the information on the beneficial owners is only disclosed under specific conditions;
- the company in BVI also needs to keep other relevant records, such as the financial ones and other relating to information about its clients; the registered agent is generally in charge of these;
- companies adhere to the BVI Substance Act requirements, including but not limited to having a number of physically present employees in the country, having their offices based on the country, expenditure in the BVI and other requirements; non-resident companies to not adhere to the Act.
The favorable taxation conditions in the British Virgin Islands mean that:
- companies are subject to a 0% corporate income tax rate;
- the value added tax is 0%;
- the personal income tax is 0%;
- there are no annual filing requirements.
While there are no corporate taxes, investors who open a Forex company in BVI do need to pay an annual government tax.
Employers are classified as Class 1 or 2. Class 1 needs to meet the following conditions:
- the payroll does not exceed $150,000 in a financial year;
- the annual turnover does not exceed $ 300,000;
- the company has no more than 7 employees.
Payroll tax return and payment conditions apply.
Our team can give you more information about employment and the conditions that derive once you decide to open a Forex company in BVI.
Contact us for complete services related to British Virgin Islands company formation.