Chesterfield (London) 
207 Old Marylebone Road
Tel: +44 (0) 203 771 3853
Fax: +44 (0) 203 771 3856

Typical BVI Structures

There are various corporate vehicles to choose from in the BVI as it is so flexible, each have their own various advantageous qualities for specific purposes.

You can have;
- Companies limited by shares
- Companies limited by guarantee not authorized to issue shares
- Companies limited by guarantee that are authorized to issue shares
- Unlimited companies not authorized to issue shares
- Unlimited companies authorized to issue shares
- Restricted purpose companies
- Segregated portfolio companies

The most popular vehicle by far is the company limited by shares. What vehicle you choose though depends entirely on what you intend to use the company for. The following are examples of popular uses for BVI companies.

Holding Company

A BVI holding company is generally a limited liability Company that has the purpose of holding shares in one or more other companies.
The main reason for choosing the BVI for the establishment of a holding company is usually to minimize the amount of tax deductions, therefore increasing profit margins.

Tax benefits for a BVI Holding Company;
- 0% Corporate tax rate 
- No capital gains tax
- No withholding tax on dividends, interest or royalties

Trading Company
This is generally used in sales or import/export. The offshore company will usually purchase directly and then arrange delivery. This usually involves three countries, where the goods are bought from, where the goods are delivered and the location of the offshore company.

Investment Company 
The BVI is not subject to withholding tax or capital gains so is a good vehicle for investment companies.

Royalty Company
These usually obtains profits from what is known as intellectual property.

Some of the main benefits for a BVI Royalty Company are;

- 0% Corporate tax rate
- No tax on dividends
- No withholding tax on royalties

There are many factors which should be taken into account when considering what structure is right for you and Chesterfield will be able to advise regarding structuring a BVI offshore company to provide the optimum structure and professional, compliant administration.

For further information on any of the above structures or any other structure please contact us or call us on our offices Telephone Number: 44 20 7097 1385 

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