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Open a Bank Account in BVI

Updated on Sunday 20th October 2019

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Open-a-Bank-Account-in-BVI.jpgThe British Virgin Islands are a popular location for basing an offshore business, particularly due to their reputation for lack of business taxation and high investor confidentiality.
 
The requirements for bank accounts and banking matters are some of the most popular issues about British Virgin Islands company formation. Our team of experts answers some of the frequently asked questions on how to open a bank account in BVI.
 

Does the bank account for the company need to be based in BVI?

 
It is not mandatory for a BVI company to open its bank account in the British Virgin Islands. The corporate bank account can be opened in another jurisdiction, as the foreign investors prefer. For some investors, opening a corporate bank account in another country may be more suitable if the business conducts most of its activities in that country or if the beneficial owners are located in that jurisdiction. In some cases, company owners who are interested in BVI company formation should take into consideration any personal tax implications that may arise from opening a bank account in one jurisdiction and operating/owning an offshore company. Understanding the local tax compliance and transparency rules in both of the jurisdictions in which the founder is doing business is important in order to avoid these issues.
 
The chosen bank is an important issue to consider, depending on the services for account management and, even more importantly, the associated costs. Some investors may choose to open a corporate bank account with a financial institution with which they have collaborated in the past and one that offers services that suit their needs.
 

What are the documents needed for opening a BVI bank account?

 
The documents needed to open a bank account are different for companies compared to individuals. Companies will need to submit proof of company registration, information about the company directors including their identification documents and, in some cases, their signature specimen. When the company has more than one beneficial owner, all of them will most likely be required to provide their identification documents. The actually required documents can vary from one bank to another.
 
Banks are subject to a set of regulations and thus in most cases, they will require the presence of the individual who opens the bank account. This means that the founder/s of the company will be required to be present at the bank when the documents for opening the account are filed. However, in some cases, the bank will accept that a representative, who holds a proper power of attorney issued specifically for this purpose, opens the account. One of our BVI company formation agents can provide additional details about how one of our specialists can act as the appointed representative for this purpose.
 
The process is simplified for individuals who open a bank account (that is a personal bank account, not a corporate one) as they will only need to provide the identification documents and, as needed, proof of residence or employment. Again, the regulations may differ according to the bank with which one chooses to work with. 
 

What are the services offered for banking in BVI?

 
The services will depend on the chosen bank and will typically include bank account administration and management, online banking options and a range of other services, as needed. Investors should choose the bank they work with based on a few criteria, including the applicable fees and the types of services they provide to foreign investors in BVI.
 

How long does it take to open a bank account in BVI?

 
The bank will need some time to analyze the application of the client and issue the acceptance letter. This is a process that may take a few days or as long as one month. In special cases, it can last even more. However, the application process is aided if the applicant is able to properly submit all of the application documents and the requested forms as fast as possible and as requested by the bank in order to avoid any delays. 
 
One of our BVI company formation agents can help answer any questions about banking matters for your offshore company in the British Virgin Islands.
 

Doing business in BVI

 
A BVI company offers a number of advantages and its beneficial owners can use the company for a number of international business activities. The BVI company set up process is a simple one, that can be accomplished fast if all of the documents are in order. The main advantages investors have when they choose to open a company here are the following:
 
  1. Very fast incorporation: a company can be incorporated as fast as one day, provided that the founders comply with the due diligence requirements.
  2. Low costs for incorporation: the company is not only easy to set up but the costs for incorporation remain low as there is no minimum share capital.
  3. No tax: BVI is one of the offshore jurisdictions with no income tax, no corporate tax, capital gains tax, wealth tax, etc.
  4. Confidentiality: BVI maintains a high level of confidentiality for the company directors are shareholders.
  5. Flexibility: investors who open a BVI offshore company can engage in many types of activities.
 
 
Confidentiality in BVI should be understood as such as not as secrecy, as special laws are in place that guarantees compliance with the Financial Action Task Force requirements for anti-money laundering.  The country has signed a number of tax information exchange agreements with various countries and has agreed to share information compliant with the requirements of these treaties or the regulations in force (namely, the Financial Action Task Force regulations). However, this does not mean that company directors do not enjoy a high level of confidentiality. The names of the directors and those of the shareholders of a BVI offshore company are not publicly available. Moreover, investors may choose to use nominee director and nominee shareholder services.
 
The British Virgin Islands are one of the most popular offshore centers, together with being a compliant jurisdiction that has not been subject to a blacklist by the Financial Action Task Force. Opening a bank account in BVI is, in most cases, part of the company formation packages and many investors are interested in setting up their accounts with a BVI bank. The following statistics applied for 2017 as per a report issued by the BVI Financial Services Commission:
 
- Company incorporations in Q4 2017: 8,538.
- Private trust companies in Q4 2017: 31.
- Limited partnerships in Q4 2017: 27.
- BVI business company incorporations in 2017 (Q1-Q4): 32,493.
 
Please do not hesitate to contact us for more information and advice on offshore companies and offshore bank accounts in the BVI.
 
 

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Call us now at +44 203 287 0408 to set up an appointment with our business consultants in the British Virgin Islands. Alternatively you can incorporate your company without traveling to the British Virgin Islands.

As a BridgeWest client, you will beneficiate from the joint expertize of local lawyers and international consultants. Together we will be able to offer you the specialized help you require for your business start-up in the British Virgin Islands.

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