A foreign company can open a branch in the BVI as part of a broader strategy to expand the business, particularly to a jurisdiction that offers compelling advantages. The BVI company formation process for a branch can be assisted by our local team of incorporation agents.
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General steps required to open a branch in BVI
Opening a branch in a new location is done by observing the local requirements. The expansion can be motivated by a Board decision to expand the parent company, to increase its visibility, or to benefit from certain tax advantages (see below for more details about the important tax advantages that apply in the BVI).
Regardless of the main reasons that led to the decision to open a branch in BVI, the following steps are relevant for registration:
- Name selection and reservation: the name of the branch must be available for use. A preliminary check and a reservation of the name are possible;
- Structure: the branch will have an appointed agent. Additional, information about the parent company is to be provided.
- Document drafting: this includes drawing up the Articles of Association and the Memorandum of the company;
- Licensing: lastly, branches are to be properly licensed for the type or types of activities they will be engaged in. One example is the Forex trading license.
Other relevant steps in the incorporation process will include opening a bank account for the branch.
Working with a registered agent for the purpose of British Virgin Islands company formation is mandatory. The agent has to be registered, meaning that it is recognized by the Financial Services Commission.
Our team specializing in BVI company incorporation can detail each of these steps and provide adequate answers according to your particular business needs.
Foreign companies can benefit from expanding their activities, in line with their general business policies. A jurisdiction like the British Virgin Islands can provide important advantages in terms of ease of doing business and international exposure.
Examples of types of foreign companies that can benefit from branch creation include banks and other financial institutions, retail companies, large consulting firms, and others.
Overseas companies that open a branch in BVI can find out more in-depth information on what they have to prepare for the registration process from our team. Those who are interested in setting up a company in another offshore jurisdiction, for example in Mauritius, can get in touch with our partners.
BVI branch taxation
One of the most important advantages for those who open a branch in BVI is that there is no corporate income tax or capital gains tax. This also applies in the case of insurance companies, licensed by the Financial Services Commission.
Despite the fact that taxation is not applicable in the British Virgin Islands, branches and other types of licensed companies are subject to certain fees for the licenses they apply for. This is the case in the financial sector, among others.
Below, we list some examples of fees for licenses issued for companies that are involved in providing financial services, more specifically, trust businesses:
- Class I licence: an US$1,000 application fee is in place;
- Class I license renewal fee: US$ 16,000;
- Class II license: US$1,000 application fee with a renewal fee of US$14,000.
Other licenses are also in place and our lawyers in BVI can offer detailed information on the licensing requirements so that branches, or other companies in the Islands, are properly licensed and lawfully engaging in their respective activities.
Contact us if you want to know more about how to open a branch in the BVI and to receive personalized information about the requirements that apply to overseas companies.