BVI Business Registration: 10 Myths You Should Stop Believing

The British Virgin Islands (BVI) remains one of the most established offshore jurisdictions for global entrepreneurs. However, many misconceptions about BVI companies still circulate. Let’s clarify the facts with up-to-date requirements, costs, and references.

Myth 1: BVI Companies Are Illegal or Shady

Fact: BVI companies are legal and regulated under the BVI Business Companies Act and supervised by the Financial Services Commission (FSC). The jurisdiction follows international standards on tax transparency and anti-money laundering through the OECD Global Forum and the Caribbean FATF (CFATF).

Official Reference – OECD Global Forum 2025 Supplementary Report (Partially Compliant)

Myth 2: “You can set up a BVI company overnight”

Fact: While the BVI Registry can process incorporations quickly via VIRRGIN, the realistic timeline is 7–10 business days after receiving all required documents and completing KYC checks. Same/next-day filing is possible in some cases, but not the standard.

Official Reference – BVI FSC: Registry of Corporate Affairs

Myth 3: “BVI companies have no reporting obligations”

Fact: Since 2023, all BVI companies must file an Annual Financial Return (AFR) with their Registered Agent within 9 months of their financial year end. Returns are not public and do not require audit, but failing to file can lead to penalties and strike-off.

Official Reference – BVI FSC – Industry Circular 26 of 2025 (Initial Annual Returns)

Myth 4: “There’s total secrecy in the BVI”

Fact: Beneficial Ownership (BO) information must now be filed with the Registry of Corporate Affairs through VIRRGIN (effective January 2025). This information remains non-public, but is accessible to competent authorities. Additionally, while the full directors register is private, the Registrar can issue a current directors list (names only) for a fee.

Official Reference – BVI FSC: Beneficial Ownership Updates

Myth 5: “BVI companies don’t need to keep records”

Fact: Companies must maintain adequate accounting records and underlying documents that clearly explain their transactions and financial position. These must be kept for at least 5 years, and the Registered Agent must know the location of records.

Official Reference – OECD Global Forum – BVI 2025 Peer Review Report (record-keeping obligations noted)

Myth 6: “There is no transparency at all”

Fact: Transparency exists in a limited form. While shareholder details are private, a current directors list can be obtained from the Registry. This aligns with international standards, balancing privacy with oversight.

Official Reference – BVI FSC: Company Searches

Myth 7: “Bank accounts are easy to open everywhere”

Fact: Opening accounts in Hong Kong, Singapore, Switzerland, or the UAE is possible but subject to strict KYC and business nexus requirements. Many clients now prefer EMIs (Electronic Money Institutions) like Wise or Airwallex for faster onboarding and lower compliance friction.

Myth 8: “No tax means no rules”

Fact: While the BVI has no corporate income or capital gains tax, companies carrying on “Relevant Activities” must comply with Economic Substance (ES) rules. This means demonstrating adequate local presence or proving tax residency elsewhere.

Official Reference – BVI International Tax Authority: Economic Substance Rules

Myth 9: “Crypto companies face no regulation in BVI”

Fact: Since 2022, the Virtual Asset Service Providers (VASP) Act requires all VASPs operating in or from the BVI to register with the FSC. The FSC also applies the Travel Rule for crypto transactions.

Official Reference – BVI FSC: Virtual Asset Service Providers

Myth 10: “Tens of thousands of companies are formed every year without change”

Fact: Incorporation volumes have shifted. For example, the FSC reported 27,362 new incorporations in 2024, showing steady but lower levels compared to earlier decades. The BVI remains a global leader but now operates under enhanced compliance.

Official Reference – BVI FSC: Statistical Bulletin Q4 2024

Establishment Requirements

To incorporate a BVI company, you need:

• At least 1 shareholder and 1 director (can be the same person; no residency requirement).

• A Registered Agent and Registered Office in the BVI.

• Share capital (standard ≤50,000 shares; can be adjusted as needed).

• Proper KYC/AML documentation.

Required Documents

Because all incorporations must go through a licensed Registered Agent, the following documents are required:

• For individuals: Passport copy, proof of residential address (≤3 months), source of funds/wealth declaration.

• For corporate shareholders: Certificate of incorporation, constitutional documents, ownership chart, UBO identification.

Additional Compliance Obligations

• Annual Financial Return: due within 9 months of financial year end.

• Accounting Records: must be maintained for ≥5 years.

• Economic Substance Declaration: required annually.

• BO Filing (2025): mandatory submission via VIRRGIN, non-public but accessible to authorities.

Final Thoughts

The BVI is still one of the most attractive offshore jurisdictions, offering a balanced mix of flexibility, confidentiality, and global recognition. However, the compliance landscape has evolved — from annual returns to BO filings and economic substance rules.

At Mirr Asia, we ensure your incorporation and ongoing management are handled professionally, with transparency on costs and requirements.