Business accounts: British Virgin Islands (BVI)
An honest assessment before work starts, the quote is fixed in writing.
The British Virgin Islands are one of the most popular jurisdictions for holding and investment companies: hundreds of thousands of business companies are registered here, there is no corporate income tax, and business is done in US dollars. But registering a company and opening a bank account are different tasks. There are few banks on the islands themselves and they work mainly with local business, so most BVI companies open accounts in other countries.
Where a BVI company opens an account
| Option | Who it suits | What matters |
|---|---|---|
| A bank in the BVI | companies active on the islands | local office, staff, clients |
| A bank in an Asian or European financial centre | holding and trading companies with clear turnover | the owner's or business's link to the bank's country, a large balance |
| A private bank | family investment holdings | size of assets, source of wealth |
| A licensed payment institution | trade and services with modest turnover | website, contracts, client countries |
What the bank checks for a BVI company
- Memorandum and articles, certificate of incorporation and good standing from the registry.
- The register of directors, which the company files with the Registry of Corporate Affairs within 15 days of appointment and 30 days of changes.
- The register of members and beneficial ownership details held by the registered agent.
- Evidence of meeting substance requirements if the company carries on certain activities.
- A business description, contracts, source of capital and owners' documents.
Substance requirements
Under the Economic Substance Act 2018, companies engaged in insurance, banking, fund management, finance and leasing, headquarters, shipping, intellectual property, distribution and service centre activities or pure holding must show real activity in the BVI. Requirements are softer for a pure holding company. Banks ask about this at opening and every year.
Costs of maintaining the company
- Annual government fee - $550 if authorised to issue up to 50,000 shares and $1,350 above that, from 1 January 2023.
- Registered agent and office services on the islands.
- An annual financial return to the agent within 9 months of year end - a short income statement and balance sheet with no audit.
There is no corporate income tax or VAT on the islands. The company keeps accounting records and supporting documents.
We will calculate online the cost of opening an account for your company and maintaining it for a year.
How to explain the structure's purpose to the bank
Every bank's main question to a BVI company is why it exists. A good answer fits on one page: who the owner is, what assets or business the company holds, where the money came from, where clients and counterparties are, what turnover is expected and why this particular bank was chosen. The page comes with an ownership chart, contracts and evidence of the source of capital. With such a file the bank asks fewer questions and decides faster.
Why banks refuse BVI companies
- No link to the islands or to the bank's country, and the structure's purpose is not explained.
- The company failed to file its register of directors or annual return and lost good standing.
- Substance requirements are not met.
- The source of capital is not evidenced.
- Owners or clients from sanctioned or higher-risk countries.
How we help
We assess where your company can realistically open an account - in the BVI, another country, a private bank or a payment institution - check good standing, registers and returns, prepare apostilled corporate documents, the source of capital file and a description of the structure's purpose, apply and follow the review.
What we do
- Corporate account - opening assistance
See also
Company formation · Personal account · Investment property
FAQ
Can a BVI company open an account in the BVI?
Where do BVI companies open accounts then?
What do banks ask a BVI company?
Should payment systems be used instead of a bank?
How much does it cost to maintain a BVI company?
Is an annual return required?
Where can your BVI company open a bank account?
We find a bank or payment institution for your British Virgin Islands company, prepare the compliance pack and help explain the source of funds. The catalogue covers every country.
The Murblz consultant replies straight away in the chat on this page. Describe your situation and we will work it out together.
Free consultation