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The Share Capital of an IBC in BVI

Updated on Wednesday 14th August 2019

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The-Share-Capital-of-an-IBC-in-BVI.jpgThe share capital of an IBC in BVI refers to the paid-up capital as well as the authorized capital. The first is the amount that is paid upon incorporation and the second is the amount the company is authorized to raise from its shareholders. In the British Virgin Islands, there are no requirements for the capital, however, in practice, there is a normal value for the authorized capital.
 
Our BVI company formation agents discuss the capital requirements for the BVI Business Company in this article and can assist investors who are willing to open an offshore company.
 
The fact that the British Virgin Islands do not have a minimum imposed capital, like in other jurisdictions where this amount can reach significant values, is an advantage for investors and one of the reasons why BVI offshore company formation is attractive for foreign entrepreneurs. 
 

What is the authorized capital in BVI?

 
There are no requirements or a minimum for the paid-up capital of the BVI offshore company, however, for the authorized capital the normal authorized capital is 50,000 USD, divided into shares that can be with our without par value. There are no requirements to express the capital in a certain currency.  
 
Companies in the British Virgin Islands are not required to state their authorized capital and the founders of the company are free to choose whatever capital value they consider fit or that it suits their needs. They will also decide how the capital will be paid-up. 
 

What are the Government fees as per the company’s capital?

 
There is no express legal minimum or requirement for the authorized capital, however, the value of 50,000 USD is observed in practice because the Government imposes different fees for a capital that is above this value. The duty is 350$ for a company that issues 50,000 shares or less. When the company has more than 50,000 shares, the value of the fee will be higher, at 1,100 $.
 
Investors usually observe this maximum amount of shares that they can register before having to pay more than the minimum Government fee. One of our agents who specialize in BVI company incorporation can provide investors with more details about this maximum authorized capital to which the minimum duties apply.  
 

How many shareholders can the BVI company have?

 
The minimum number of shareholders for a BVI offshore company is one and there is no maximum amount. They can be individuals and/or legal persons. The number of shares owned by shareholders will be stated in the company’s constitutive documents. The shares do not need to have a fixed monetary value. 
 
Investors have another advantage for opening a company in BVI and that is the liability of the shareholders. Their liability is limited up to the amount they have invested in the company. 
 
Moreover, there is no restriction on the nationality or the residency of the shareholders. Company founders who wish to do so can use nominee shareholders.
 

What are the requirements for companies?

 
The BVI company set up process is a simple and a fast one. However, investors are expected to comply with the minimum requirements that apply to companies in this jurisdiction. The BVI company is required to:
 
  • - have a registered office: this is a mandatory requirement for a BVI company, the registered office needs to be based in the British Virgin Islands.
  • - have directors: the British Virgin Islands International Business Company is required to have a minimum of one director.
  • - filing: there are no requirements for filing a tax return to the authorities as companies are not required to pay tax.
  • - financial statements: a company in BVI is required to keep records that will justify the transactions; these are the annual records.
  • - audit: companies in this jurisdiction are not required to perform regular audits of their accounts.
 
Businesses in the British Virgin Islands are diverse, from offshore companies involved in international trade or investment vehicles and asset holding companies to businesses in the tourism sector. We highlight some of the economic statistics below:
 
  • - in 2015, the value of the foreign direct investment was approximately 76,17 billion $. 
  • - it is estimated that there are over 350,000 registered IBCs. 
  • - the banking sector total asset value was 2.26 billion $ at the end of 2016.
 
Investors who wish to know more about the optimum capital for BVI company formation, as well as other details regarding company incorporation and the business climate, can contact us.
 

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