Offshore company management in BVI
can be divided into two categories: direct control and nominee control. The decision between the two options will need to take place during the early stages of British Virgin Islands Company Formation, as the names of the company managers will be recorded as needed.
The company management option should take into consideration the wishes of the company founder but also the nature of the business activities and whether or not the BVI offshore company
is involved in extensive trading with other jurisdictions, especially the country in which the company director is a resident.
Company directors in BVI
The beneficial owner who acts as the director of the company has two main advantages and two disadvantages, each presented in the list below:
• The cost advantage: this can be important if the owner decides to keep the annual company management costs to a minimum;
• The simple structure advantage: when the owner acts as the director, the company’s structure remains a simple one.
• The tax disadvantage: this may be an important disadvantage when the director may be forced to face the tax consequences in his country of origin.
• The confidentiality disadvantage: operating through a nominee director offers the highest degree of confidentiality and by choosing not do to so, offshore company owners will not benefit from a particular advantage.
Nominee company directors in BVI
The nominee director in BVI
is a third-party company manager who is appointed for the purpose of offering a high degree of private but at the same time serves an important role in the daily management of the company. The relationship between the beneficial owner and the nominee director is a contractual one through which the powers of the nominee are clearly defined. A basic level of involvement will prevent him from having a defining role in the company, however, company owners can decide what powers to attribute to this third-party.
Company owners can also choose to appoint a team of accountants in BVI
to make sure that their legal entity, especially of regulates, complies with the minimum requirements.