Services · Company formation

How to register a company in the British Virgin Islands

Updated 29 September 2026

356,000 companies and just 6 banks. A 0% tax rate and a US$550 government fee made the BVI the classic home for holding companies, but the bank account will almost always be abroad. We cover company types, steps and timing, government fees, taxes, annual filings and the rules for Russian and Belarusian citizens.

Is a BVI company worth it in 2026

At the end of 2025 the British Virgin Islands (BVI) register held 356,256 active companies, while only 6 banks on the islands held a general banking licence. Those two figures from the statistical bulletin of the BVI Financial Services Commission (FSC, the regulator that also runs the company registry) explain the jurisdiction better than any brochure: companies are registered here, but they trade, bank and pay tax elsewhere.

The reasons for its popularity have not changed. There is no tax on profits, dividends or capital gains, and no VAT. The government fee to incorporate a standard company is US$550 (the US dollar is the official currency of the BVI), and the same amount is due every year. There is no minimum capital, the director can live anywhere and nobody has to travel to the islands to incorporate.

The downsides have grown over the last three years. Since 2023 an ordinary company files an annual financial return with its registered agent. Since 2 January 2025 every beneficial owner with 10% or more of the shares or votes must be filed with the registry. Since 1 April 2026 banks, lawyers and other firms that are obliged to check their customers can request that data. On the EU list of non-cooperative tax jurisdictions the BVI sits in Annex II, the so-called grey list: not the blacklist, where Panama and Russia are, but EU banks and counterparties do notice it.

A good fit for a holding company above businesses in several countries, a joint venture with foreign partners, or holding investments. A poor fit for plain trading and client payments: such a company needs an account, and there are only a handful of banks on the islands, so compare it with Hong Kong or the UAE. All countries are in our company formation section.

What types of company can you register in the British Virgin Islands

Every BVI company is formed under a single statute, the BVI Business Companies Act, 2004. It came into force on 1 January 2005, and on 1 January 2007 it fully replaced the old International Business Companies Act. That is why the familiar label IBC is out of date: today the vehicle is a BVI Business Company, or BC, though its tax treatment is the same.

Section 5 of the Act lists five types of company, and two further statuses sit on top of a company limited by shares. Foreign owners almost always choose the first option.

Under section 17 of the Act, the name of a limited company must end with Limited, Corporation, Incorporated, Societe Anonyme, Sociedad Anonima or the abbreviations Ltd, Corp, Inc or S.A.

BVI company requirements: registered agent, office, director and capital

The key BVI requirement is not capital or a director but a registered agent: a local firm licensed by the FSC that files documents with the registry, keeps the company's records and checks its owners. Section 6 of the Act bars the Registrar from accepting an incorporation application from anyone other than the proposed agent, and section 91 requires a company to have a registered agent in the BVI at all times.

• Registered office. A physical address in the BVI, usually the agent's office. No office of your own is needed.
• Director. At least one, an individual or a company, of any nationality and residence. Since 2 January 2025 the first director must be appointed within 15 days of incorporation, and the register of directors is filed with the Registrar. The Registrar gives the names of current directors to anyone who asks; other personal details stay private.
• Shareholder. At least one, an individual or a company from any country. The sole shareholder can also be the sole director.
• Capital. There is no minimum capital. The memorandum of association (the main constitutional document) sets the maximum number of shares the company may issue. The standard is 50,000 shares, because the government fee changes above that threshold.
• Secretary. Not required by law, although some agents ask for one.
• Audit. The Act imposes no audit requirement.
• Accounting records. They must be kept for at least 5 years (section 98), at the agent's office or elsewhere, with the address given to the agent in writing.

One limitation is often overlooked. A business company may not do business with BVI residents or own real estate on the islands without a government trade licence. That is irrelevant for a holding company, but decisive for a hotel or charter business on the islands themselves.

How to register a company in the BVI: steps, timing and remote setup

Registration itself takes hours, not weeks: the registry can incorporate a BVI company within 24 hours once the agent has completed due diligence on the owners. That due diligence is the slow part, and its pace depends on how complete the documents are.

Can you register a BVI company remotely? Yes. Neither the owner nor the director has to visit the islands: the agent files everything and works from certified copies. Passports and proof of address are usually certified by a notary in the country of residence. An in-person meeting may only be needed at the bank, if the bank insists on one.

How much does it cost to set up a BVI company: 2026 government fees

The BVI government charges little: US$550 to incorporate and the same every year for a company authorised to issue up to 50,000 shares. These rates apply since 1 January 2023, when they rose from US$450. The main cost is the registered agent, the registered office and due diligence, and each agent sets its own prices.

Late penalties. A late annual fee attracts a 10% penalty if it is less than two months overdue and 50% after that. The Registrar strikes off companies that do not pay, and since 2023 striking off also means dissolution: any assets left in the company can pass to the Crown. A company can be restored, but at additional cost. Filing the annual financial return late costs US$300 for the first month and US$200 for each month after, up to US$5,000.

What taxes does a BVI company pay

Corporate income tax in the BVI is 0%, and that is the law rather than a temporary incentive: business companies are exempt from the taxes imposed by the territory's income tax legislation. A company files no corporate income tax return at all.

• tax on profits, capital gains and branch profits: 0%;
• no VAT and no sales tax;
• no withholding tax on dividends, interest or royalties, so profits can be paid to owners without deductions in the BVI;
• no exchange controls;
• payroll taxes arise only if the company has staff on the islands: payroll tax of 10% or 14% depending on the size of the employer, plus social security and health insurance;
• buying real estate in the BVI triggers stamp duty of 12%, or 4% only for belongers (people born in the territory or granted belonger status).

Zero comes at a price. The BVI has no tax treaties that work in practice: the UK treaties with Japan and Switzerland were formally extended to the islands but are not used. Dividends, interest and royalties from other countries therefore arrive in the BVI after the full withholding tax of the paying country. For a holding company above a business in a country with high withholding rates, that can eat a noticeable part of the benefit.

Tax where the owner lives. Zero in the BVI does not cancel taxes at home. If a Russian tax resident owns more than 25% of a BVI company (or more than 10% where Russian residents together own more than half), it is a controlled foreign company (CFC) under Article 25.13 of the Russian Tax Code: it must be notified to the tax authority, and its profits may be taxed in Russia. The BVI is also on the Russian Ministry of Finance list of offshore zones (Order No. 108n of 13 November 2007). Many other countries have CFC rules too, so the ownership structure is worth checking before incorporation, not after.

What a BVI company must file every year

Zero tax has long stopped meaning zero paperwork. Since 2023 an ordinary business company has four recurring obligations, and missing any of them brings penalties, up to being struck off.

Economic substance means having staff, premises and real management on the islands if the company carries on an activity listed in the Economic Substance (Companies and Limited Partnerships) Act, 2018: banking, insurance, fund management, finance and leasing, headquarters, shipping, holding, intellectual property, or distribution and service centre business. Every company files the report, even if it does none of these things. An exemption is available by proving tax residence elsewhere, but only if that country is not on the EU blacklist (Annex I), and Russia is on it. More on the pages about BVI economic substance and BVI accounts and audit.

Who can see the owners. The registers of members and beneficial owners are available only to the company, its agent, BVI authorities and law enforcement. Since 1 April 2026 a request can also come from anyone who shows a legitimate interest: a bank or another firm obliged to check its customers, or someone investigating money laundering. If disclosure would expose the beneficial owner or their family to fraud, kidnapping or extortion, an application can be made for exemption from such access.

Bank account and owners from Russia and Belarus

At the end of 2025 all 6 banks with a general licence in the BVI together held about US$3.2 billion in assets, according to the FSC bulletin. Set against 356,000 companies that is tiny, so a BVI company usually banks in another country, and the bank, not the registry, becomes the real gatekeeper.

For a foreign bank, a company with no office or staff in its country of incorporation calls for enhanced due diligence. Expect questions about the business model, contracts with counterparties, the owner's source of wealth and tax residence. Banks usually ask for a certificate of good standing, a certified set of constitutional documents and an extract from the register of directors. Realistic options are covered on our pages on a BVI business account and a personal account in the BVI.

Sanctions. The BVI is a British Overseas Territory, and the UK sanctions regime against Russia applies there through the Russia (Sanctions) (Overseas Territories) Order 2020, and against Belarus through a similar 2020 Order. Assets of designated persons are frozen, and dealing with them is prohibited without a licence. Separately, providing new trust services to persons connected with Russia is prohibited, so a new BVI trust cannot be set up for them without a specific licence.

One important detail: UK rules define a connection with Russia not by passport but by being ordinarily resident or located in Russia, and for companies by being incorporated or domiciled there. A Russian or Belarusian passport alone does not bar anyone from owning a BVI company. But each registered agent decides for itself whether to take a company on, and with residence, assets or partners in Russia or Belarus it is wise to expect deeper checks and possible refusals.

What we do

A BVI company takes days to register, but structural mistakes surface later: at the bank, in a CFC review at home or when someone requests beneficial ownership data. So the work starts with two questions: what will the company do, and where do its owners live.

• we assess the task and say plainly if another jurisdiction fits better, for example the Cayman Islands, Seychelles or Hong Kong;
• we choose the company type, number of shares and ownership structure, and prepare the memorandum and articles;
• we put together the due diligence package for the agent and arrange translations and certification of documents;
• we file through a licensed registered agent, arrange the registered office in the BVI and the filing of the registers of directors, members and beneficial owners;
• we bring in Murblz accounting and tax specialists for the annual financial return, the economic substance report and bookkeeping;
• we help prepare the bank account package and go through the bank's likely questions in advance;
• we handle licensed activities separately, such as a BVI forex licence or a BVI company with a VASP licence (virtual asset service provider), as well as moving a company out of the BVI, for example to the UAE;
• legal representation before the authorities and courts is provided through partners licensed in the BVI.

Still choosing a country? Our overview of company formation jurisdictions compares countries with different taxes and substance requirements.

Fees

See also

Business account · Personal account · Investment property

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