To open a subsidiary in BVI, investors will follow the regular company incorporation process. The subsidiary will be a locally registered entity, as per the British Virgin Islands laws.
Several steps are mandatory for BVI company formation, and they also apply in the case of subsidiaries. Getting in touch with our team will provide you with more information than what is summarized in this article.
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The steps required to open a subsidiary in BVI
To set up a BVI subsidiary, founders will use the services offered by a registered agent. The use of such an agent is obligatory for BVI company set up, and our team can assist throughout the process.
Below, we list the main steps required to open a subsidiary in BVI:
- Choose and reserve an available company name;
- Prepare the information on the company founders and the beneficial owners;
- Draft the incorporation documents. These are the Articles of Association and the Memorandum;
- Appoint the company directors and the company secretary;
- Register the business with the BVI Registry of Corporate Affairs.
All companies, including subsidiaries, operate based on valid special permits and licenses, when required for the industry in which they operate. Such licenses are issued by the Financial Services Commission for activities related to banking, insurance and reinsurance, or other types of financial services.
Our lawyers in BVI can give you more information on specific laws that govern certain industries and how you can make sure that your business, or subsidiary, operates as provided by law.
| Quick Facts | |
|---|---|
| Applicable legislation | BVI laws |
| Best Used For | Any type of business, particularly if different from that of the parent company |
| Minimum share capital | No mandatory minimum |
| Time frame for the incorporation (approx.) | Several business days, usually no more than a week. |
| Management (Local/Foreign) | Usually local |
| Legal representative required (YES/NO) | Yes |
| Local bank account (YES/NO) | Yes |
| Independence from the parent company | Independent |
| Liability of the parent company | Limited to the amount it invests in its subsidiary |
| Corporate tax rate | No corporate income tax |
| Possibility of hiring local staff | The subsidiary can hire local staff |
| Mandatory subsidiary name requirements | Complies with the conditions for company names when opening a BVI company |
| Subsidiary name restrictions | The use of identical or similar names is prohibited, as is the use of some offensive or restricted words or phrases. |
| Articles of incorporation of the subsidiary | Drawn up separately from those of the parent company. |
| Subsidiary-specific documents | Can include the parent company’s resolution to open a subsidiary in the British Virgin Islands. |
BVI subsidiary advantages and particularities
Those who open a subsidiary in BVI enjoy not only the relatively simple and fast British Virgin Islands company formation process, but also the local tax exemptions.
An important advantage for those deciding to open a subsidiary in the BVI is that there is no corporate income tax levied in this jurisdiction. Additionally, no capital gains taxes are levied in companies, and this exception also includes insurance companies.
A foreign entity that chooses to incorporate a subsidiary in the British Virgin Islands will not be fully liable for its debts and obligations, as would be the case if it were to open a branch.
The aforementioned tax neutrality is undeniably one of the top advantages of company incorporation in the Islands. However, it is also linked with another benefit for company founders, which is the reduced administrative and compliance requirements – a result of the tax neutral regime.
In addition to the tax advantages, we also mention that to open a subsidiary, there is no minimum capital requirement. However, a BVI company is subject to an annual license fee (as per the type of license it must hold in order to engage in its activities) and other government fees, as may be the case.
Annual fee payments and other yearly submissions are made by the registered agents. Our team can give you more information on their role, appointment, and change if required.
BVI companies
As per the Registry of Corporate Affairs, the number of total business companies on register as of the end of March 2025 was 361,167. Other statistical data summarized by our BVI company formation experts shows that:
- The number of new company incorporations increased by 13.5% in the first quarter of 2025, compared to the same period a year prior;
- There were 41 foreign companies registered during the first quarter of 2025;
- The total number of foreign companies on register in March 2025 was 66;
- At the same time, there were significant company continuations on the Registry, more specifically, 2,869 continuations in the first quarter of 2025.
If you want to open a subsidiary in the BVI, do not hesitate to contact us.