Offshore companies and… the most confidential shares in the world?
The British Virgin Islands are a very popular territory for setting up offshore companies.
Many here incorporate a so called IBC, an International Business Company. To determine whether a company is resident in the BVI, similar rules apply to those in the UK. On the other hand, as mentioned, they are in British Overseas Territory.
Therefore, the companies incorporated therein, or managed, or controlled, are treated as residents.
Of course, the tax advantages are those we have already talked about in a previous episode.
And so if you use a company in the B V I as an overseas investment company or for recharging, there May be no tax to pay. It should be noted that the BVI are on the OECD white list, having signed twentyseven information exchange treaties. And this obviously has strong consequences for those who want to open bank accounts in this area.
In fact, there will be communications to the countries of tax residence. So you will need to be sure that you have complied with the disclosure obligations.
Traditionally, in the B V I , there is a very interesting tool from the point of view of asset protection.
As well as the protection of confidentiality.
In fact, traditionally, I B C companies could offer bearer shares.
Thus guaranteeing enormous levels of confidentiality. Bearer shares allow the holder to keep his shareholding private.
And all the details connected to it. Since the ownership of the bearer shares passes with the delivery of the same. However, changes have recently been made to this legislation.
And the name of the beneficial owner must now be communicated to certain 'custodians'.
For example, certain financial institutions, which in any case must guarantee confidentiality.
Therefore, the total confidentiality, which once characterized them, can no longer be defined as total. However, they are still a very useful tool for many in the context of international tax planning.
This concludes our British Virgin Islands series.
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