Overseas companies can open a representative office in BVI as a first step towards making their presence permanent in this jurisdiction. Because the setup of this office is not the equivalent of BVI company formation, it also means that it is not burdened by tax and administrative requirements. Find out more about the office that can be used for general liaison purposes in this article.
| Quick Facts | |
|---|---|
| Best used for | Market research, promoting the services, information exchange, networking, etc. |
| Prohibited activities in the BVI | Commercial activities |
| Name | The same as the parent company’s |
| Legal entity | Not a legal entity |
| Judicial capacity | Not applicable |
| Liability | The parent company is fully liable |
| Types of companies that can use a liaison office | Medium and large companies looking to expand to the British Virgin Islands. |
| Limitations on foreign companies | No applicable restrictions |
| BVI liaison office local representative | Appointed by the foreign company |
| Subject to taxes | Not the case |
| Subject to reporting | No |
| Registration | Notifies its presence |
| Alternatives to the BVI representative office | Branch (can be used to derive income) |
| How can we assist you | Assistance with the liaison office setup in the BVI |
| When to contact us for assistance | As soon as the foreign company decides to explore its options on the BVI market. |
Table of Contents
The main uses and advantages of a BVI representative office
A representative office can be a suitable way in which a foreign company can test whether or not the British Virgin Islands are suitable for business expansion. This office is not a legal form, in the sense that it does not have legal personality. However, it can enter into temporary agreements for purposes that are described below by our BVI company incorporation agents.
Foreign companies can open a representative office in BVI and engage in the following activities:
- Promotional purposes: the foreign company can make its services and products known;
- Find local distributors: before the decision to start the BVI company is final, the liaison office can provide opportunities to find local collaborators or distributors, depending on the company’s activities;
- Inspect the market: companies that set up a representative office in the BVI can perform various market research studies or polls;
- Networking: lastly, the office can be a suitable base for connecting with potential clients, in addition to suppliers.
As far as the advantages of the liaison office are concerned, our team highlights the following:
- No taxes;
- Low setup costs. A virtual office can be used for the liaison office;
- Ease of terminating the activities, due to the temporary nature of the networking and/or market research phases;
- Low maintenance requirements, especially given the nature of the activities. There is no need to employ an accountant in BVI.
The decision to open a representative office in the British Virgin Islands is taken by the company according to its business expansion model and following the approval offered by its shareholders, during an ordinary or a special shareholders’ meeting.
If you are interested in BVI company setup, our team can answer your questions.
Special requirements for the BVI representative office
A key feature of the representative office is that it cannot be used to engage in commercial activities. This means that overseas companies that open a liaison office in BVI will only perform activities such as those listed above by our team.
To engage in trading, import or export, or to sell products or services in the British Virgin Islands or to non-BVI clients, international investors will have to start the process for BVI company formation.
Because it does not engage in commercial activities, the liaison office does not require a business license in the BVI. However, this does not prevent it from entering into certain agreements, such as those required to hire staff who will perform the market research activities, or sign office rental agreements.
Companies in the BVI
Foreign companies that have already decided to expand their activities to the British Virgin Islands, whether or not they have opened a liaison office beforehand, can choose between opening a branch or a subsidiary in this jurisdiction.
Companies that do engage in trade and commercial activities require special permits and licenses, such as those issued by the BVI Financial Services Commission (FSC) for financial activities. According to the BVI FSC, the number of company incorporations in recent years was the following:
- Total incorporations during the first quarter of 2025: 6,971;
- Total company formations in BVI 2024: 27,362;
- Total incorporations in 2023: 22.317.
Contact us if you require more details about how you can open a representative office in the BVI.