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About the British Virgin Islands:
The British Virgin Islands (BVI) are a group of islands located
about sixty miles due east of Puerto Rico. The principal islands
are Tortola and Virgin Gorda. Road Town is the capital city and
financial center of the BVI, located on the island of Tortola, which
is connected by a toll bridge to Beef Island and where the
international airport is situated. The islands of the BVI were
christened by Christopher Columbus when sighted in 1493 on his
second expedition to the New World as "Las Once Mil
Virgines", in honour of St. Ursula and her maidens who
sacrificed their lives for God in 4th Century Cologne. The Crest
of St. Ursula is the national symbol of the BVI.
As a British Overseas Territory with a long history of political
stability, the BVI offers all the security traditionally associated with
the British flag. The territory is
responsible for its own internal self-government, and is governed by a
democratically elected Legislative and Executive Council. Democratic elections are held at least once
every four years. BVI Law is based on the British Legal
System and English Common Law. The court system is made up of a
Magistrates Court, a High Court and a Circuit Court of Appeal of
the Eastern Caribbean Supreme Court with final appeal to the Privy
Council in England. The local currency of the BVI is the United States
Dollar. There are no exchange controls and no restrictions on movement of
currency. International banking, commercial and financial
services are available in Road Town, and communication facilities
in the BVI are first rate.
Global Demand for Offshore Business Centers:
The development of the offshore financial center (OFC) is a phenomenon
of the last thirty years and demand for their services continues to
increase. High taxation, overly complex laws and excessive regulations in
many industrialised countries, and political turbulence and economic
uncertainty in developing countries, are some of the factors influencing
the growth in demand. Despite this, the scale of OFCs and their relative
importance in the global economy is not widely appreciated, since the
matter is not generally publicized. By recent estimates, 50% of all
currency transactions processed internationally involve OFCs. The British
Virgin Islands and its burgeoning Financial Services Sector is a prime example
of one such OFC.
The British Virgin Islands Advantage:
The BVI territory has been a true phenomenon for the
establishment of offshore companies in recent years. It has rapidly become
the premier offshore corporate domicile with more than 300,000
International Business Companies (IBCs) registered.
Despite a trend by other offshore financial centers to replicate the pioneering
International
Business Company (IBC) Act (click on the preceding link for full text) legislation introduced by the BVI in 1984, the BVI has remained the
clear leader in this field: over 50,000 British Virgin Islands IBCs were formed in 1997 alone.
Some of the key features which lie behind the popularity of the BVI are:
Other factors which have also been essential contributors to success include an enlightened
Financial Services Department and a highly efficient BVI Companies Registry (both are BVI
Government agencies). The Financial Services Department has maintained minimalist yet tight
regulation to safeguard the integrity of the jurisdiction, and continues to initiate legislation
which keep the Territory's laws among the most advanced and flexible to be found in any of the
offshore financial centers. The BVI Companies Registry has introduced an advanced electronic
name reservation system and is now capable of registering foreign language memoranda and
articles of association. Despite the increasing volume, it continues to fulfill same-day
incorporation orders, and has been invaluable in meeting international client needs.
BVI Government - Private Sector Partnership:
The preferment and acceptance of the BVI by the international professional community has
also been greatly assisted by a policy of partnership between the BVI Government and the
private sector to ensure that policies and legislation meet the financial community's needs and
interests. The BVI private sector includes two of the world's largest and most reknowned banks,
Barclays (UK) and Chase Manhattan (US), as well as five of the top six accounting majors,
and several of Europe's leading private banks and trust companies -- all of whom have established
offices in the BVI.
It is with the private sector's development, carefully nurtured by benign policies to
encourage growth by BVI Government, that the BVI has become much more than a single product
jurisdiction, (ie: more than just the IBC). Today the BVI is used as a true
financial center in that accounting, reinvoicing, corporate banking, investment
management and private banking services are all capable of being handled in the Territory.
A clear example of this expansion is the
growth of administration services for the mutual fund industry in the BVI, where it is
estimated that US$50 billion of public and private mutual funds are presently administered
in the Territory.
BVI Infrastructure and Territorial Autonomy:
State-of-the-art telecommunications, provided by Cable and Wireless of the UK, and excellent
infrastructure and support services have also been critical factors to the Territory's success.
The proactive spirit of the Territory is exemplefied by the rapid recovery of electricity and
essential services following each of three major hurricanes which passed over the BVI
in 1996. In July of 1996, for instance, the eye of Hurricane Bertha passed directly over
Tortola where the Financial Services Sector is located, and within 24 hours full electricity
had been restored.
The United Kingdom remains responsible for the territory's external
affairs, defense, internal security and the courts. However, based upon the
integrity of the jurisdiction, it has become the only Caribbean Dependent
Territory to which the British Government has devolved responsibility for
developing and managing its own financial services industry. Almost all
financial services entities in the BVI are members of the Association of
Registered Agents, which has adopted a code of conduct and professional
ethics to support the Government's commitment to maintain the integrity
of the jurisdiction. The members of the Association of Registered Agents are licensed by
the BVI Government and are the conduit by which business opportunities
are facilitated. They enjoy 24-hour, on-line computer access to the Company
Registry for the establishment of BVI business entities and amendments
to corporate filings.
British Virgin Islands in the 21st Century:
In conclusion, the BVI Government has a clear understanding of the value and importance of the Financial
Services Sector to the local economy. It is uncommon that any government devotes so
much of its planning and resources to make the private sector so globally competitive.
Government licence fees and charges by the BVI Companies Registry have remained unchanged
and as such are extremely reasonable in contrast with other offshore jurisdictions.
As the global economy continues to open up to free trade, OFCs will also develop and expand
their range of financial services. It is evident from observing the evoloution of BVI law,
and its resultant economic activity, that emerging worldwide markets will continue to assist
this trend, making the British Virgin Islands a key international commercial and financial
business center in the 21st Century. Click here for further information
on the British Virgin Islands territory.
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Corporate Address: Palm Chambers / P.O. Box 119 / Road Town, Tortola, B.V.I.
Telephone: +1 (284) 494.4590 / Telecopier: +1 (284) 494.2838 / E-mail: elan@elanbvi.com
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