Open a Representative Office in BVI

Overseas companies can open a representative office in BVI as a first step towards making their presence permanent in this jurisdiction. Our BVI company formation experts can help you set up this preliminary office that will engage in pre-incorporation marketing and liaison.

What is 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.

How is the representative office used?

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.

What types of companies can benefit from opening a liaison office in the BVI?

The representative office can be used by any foreign company interested in testing the market. Our team lists some of the types of companies that generally do so (or that can have the greatest advantages when choosing to include this preliminary step as part of their expansion activities):

• Tech companies: businesses that will set up a remote or international base in the British Virgin Islands, effectively providing international services (tech and/or IT) to foreign clients;
• Financial companies: financial services providers interested in exploring the market opportunities or the regulatory regime before setting up a branch;
• Import-export companies: businesses looking to open a new international hub for their activities, with a need to first test the British Virgin Islands as a possible location for their expansion strategy.

Are there any limitations on the types of companies that can open a representative office in the BVI?

No. The law does not provide for special conditions or prohibitions in terms of activities or the foreign company’s country of origin. This is to say that any foreign company interested in setting up a liaison office in the BVI for the aforementioned market testing purposes can do so.

What are the required steps when opening a representative office in the 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.

Foreign companies that open a representative office in the BVI register this establishment with the local authorities, as a means of announcing their presence on the market, albeit a non-commercial one.

The Registry of Corporate Affairs is the local agency responsible for administering the BVI Business Companies Act and for duly registering all entities doing business within this jurisdiction.

What are the mandatory conditions for the BVI representative office?

For the general purpose of company formation in the BVI, the law makes it mandatory to appoint a local registered agent. The liaison office is not a legal entity; however, the requirement to appoint an agent and maintain an office is in place, as the law does not differentiate between different forms of foreign permanent establishments (i.e., branches are required to maintain the same when doing business in the BVI).

What are the advantages of a representative office in BVI?

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;
• No mandatory licensing, such as those issued by the FSC, as the office will not engage in actual provision of services;
• 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.

Contact us if you require more details about how you can open a representative office in the BVI.