BACKGROUND:
The British Virgin Islands are a British Crown Colony based on U.K. legal system. This together with its political and economic condition makes the BVI one of the most competitive jurisdictions established in the Caribbean.

Types of Company(s):
In 1984 the BVI enacted the "International Business Company Ordinance", it was amended subsequently in 1988 and 1990. The company used in the BVI  is known as the "International Business Company" or its abbreviation  (IBC) . An IBC is one of the most cost effective offshore companies and has a minimum administrative structure. These companies are exempt from local taxes and stamp duties and can still be managed and controlled from within the BVI. An IBC can be incorporated within 24 hours. Almost any name can be used provided that there are no similar names existing or contains a sensitive word such as Bank, Assurance etc.,

The company must contain the word; Limited, Corporation, Incorporated, Societe Anonyme or Sociedad Anonima or their abbreviations to denote limited liability. The abbreviation BV cannot be used.
Name reservations are accepted for up to 7 days only, unless an extra charge is paid.

There is a minimum of one director and one shareholder which can be either an individual person or a corporation in an IBC company. There is no need to enter the names of the directors and shareholders at the Companies Registry although the International Business Companies (Amendment) Act 1990 permits an optional registration facility if so required by the clients to file the names of the directors and shareholders. The register of directors can be maintained at the Registered Office of the company.  No annual returns or accounts need to be filed.

The Registered Office and the Registered Agent of an IBC must be within the BVI. The company has to be managed by Lawyers or Accountants.  Board meetings can be held anywhere in the world and no statutory meetings are required.

The standard authorised share capital of an IBC is $50,000 of which an annual fee licence of $300 is payable to the Registrar of Companies. The Registered Office and Agent of the Company must keep copies of the share register. The company seal must be kept in the Registered Office.

An IBC company must not trade with residents in The British Virgin Island and may not own real estate and cannot have banking or insurance business. It cannot carry on the business of company management unless licensed under the Company Management Act, 1990, and cannot provide Registered Office or the Registered Agent for companies incorporated in the BVI.