To open a holding company in BVI investors will follow the general BVI company formation process for the chosen business form, followed by structuring the holding in a way that suits their business needs. A holding company is a legal entity incorporate for the purpose of owning shares in other companies or owning other types of assets. You can read the following article presented by our team for more information.
| Quick Facts | |
|---|---|
| Legal entities used for the BVI holding company | BVI Business Company |
| Incorporation method | As per the rules to register a BVI Business Company |
| Incorporation time required for a BVI holding company | Several business days |
| Types of assets owned by the holding | Stocks, securities, intellectual property, real estate, etc. |
| Requirement for local bank account (Yes/No) | Yes |
| Residency requirements for the founder(s) | Not mandatory |
| BVI holding company advantages | Flexibility, ease of doing business in the BVI, ease of setup |
| Precautions | Compliance with the beneficial ownership disclosure requirements in the BVI, other compliance requirements. |
| Shareholding structure | A parent company that sets up a holding company in BVI shall own it partly or fully |
| Minimum Capital | Not required |
| Taxation | As per the BVI rules |
| Control | Foreign |
| Registered agent requirements | According to the BVI mandatory requirements |
| Accounting and reporting | Filing the annual return |
| Services for setting up a holding company in the BVI | Offered by our team |
Table of Contents
What is a holding company in BVI?
A holding company is e legal entity that has been set up to hold (and control) stock in another company or to hold and control other types of assets.
The holding is not involved in commercial activities (i.e., it does not engage in trading, manufacturing, or the provision of services), but it is simply used to mage other businesses, often its subsidiaries.
Important characteristics worth noting for those who open a holding company in BVI include:
- The holding will not provide services in the British Virgin Islands;
- There is considerable flexibility in structuring this type of company as they can be used for different purposes;
- It is set up as per the BVI offshore company registration requirements;
- The holding can use a virtual office in the British Virgin Islands. The company is required to have a registered office and a registered agent. At the same time, it is subject to certain annual reporting requirements and with beneficial ownership disclosures.
The holding company can be used to diversify and segregate risk, however, it may face certain issues concerning complex structure and management, as the portfolio of controlled companies grows. It can have a bank account in the BVI.
What are the main reasons to open a holding company in BVI?
Entrepreneurs interested in British Virgin Islands company formation enjoy several advantages when setting up their business here, among which the following are listed by our team:
- A simplified incorporation process;
- Tax efficiency;
- Ease of doing business;
- Access to international markets and an overall welcoming investment climate for foreign investors, coupled with the fact that the official currency is the United States dollar.
We remind investors that the following taxes are in place in the British Virgin Islands:
- 0% corporate income tax;
- 0% capital gains taxes;
- The maximum insurable earnings for the employer is $51,000 for the year 2025 according to the Virgin Islands Social Security Board.
How do investors open a holding company in BVI?
BVI company incorporation is a multi-step process that starts with choosing a suitable business form. For those who will open a holding company in BVI, this can be the International Business Company. Some of the general incorporation steps include:
- Choosing an original business name and verifying its availability for use;
- Preparing the company’s constitutive documents;
- Obtaining and preparing the required documents concerning the company founders;
- Making the registration submission with the BVI authorities;
- Make post-registration submissions, as may be the case (for hiring employees and other purposes).
Those who set up a holding company in BVI will not typically require special permits and licenses, given the fact that the business will not engage in commercial activities, but it will simply be used to control stock in other corporations. If changes to the business are brought during its activity, these are to be duly notified to the authorities.
If you are looking to set up a company for use not as a holding but as a special purpose vehicle, you can read our article on these companies here.
Contact our team for more information on how to open a holding company in BVI. We provide full assistance throughout all the incorporation phases.