The world's most-used offshore holding vehicle. ~$450 setup, $450/yr renewal, 0% corporate tax on non-BVI income, no public registry. The default for international holding structures.
Not legal, tax, or accounting advice
This page is for orientation only. Choosing a corporate structure has tax, legal, and banking consequences specific to your situation. Consult a licensed attorney and tax adviser in both your country of residence and the proposed jurisdiction before incorporating.
$2,500
$2,200
3 days
0%
A BVI Business Company (formerly 'IBC') is the most widely used offshore corporate vehicle in the world — the British Virgin Islands hosts ~400,000 active BCs (vs. a population of 31,000). Established under the BVI Business Companies Act 2004, the BC pays 0% corporate tax on non-BVI-source income, has no minimum capital requirement, requires only one director and one shareholder (any nationality, no residency required), and keeps the beneficial ownership register confidential to the BVI Financial Services Commission and law enforcement (it is NOT public). The Economic Substance regime (since 2019) requires BCs in 'relevant activities' (banking, fund management, financing, IP holding) to demonstrate substance in BVI; pure holding companies are subject to 'reduced substance' tests. Common uses: holding shares in operating companies, owning yachts / aircraft, real-estate holding, IP holding, and as the topco for joint ventures. The BVI is OECD-cooperative on tax-information exchange (CRS, FATCA implementer) — gone are the days of total opacity.
Government fee
$450
Registered agent (yr 1)
$1,200
Legal (optional)
$500–$3,500
All-in setup (low / typical)
$1,650 / $2,500
Annual maintenance (low / typical)
$1,200 / $2,200
Corporate tax rate
0%
VAT / GST
—
Withholding on dividends (non-treaty)
0%
Public beneficial ownership registry
Confidential
0% corporate income tax on non-BVI-source income. 0% capital gains, dividends, interest withholding, and inheritance tax. The Economic Substance Act 2018 (in force from 2019) requires BCs engaged in 'relevant activities' (banking, insurance, fund management, financing & leasing, headquarters business, shipping, holding business, IP business, distribution and service centres) to demonstrate substance — directors meeting in BVI, BVI office, BVI staff, etc. Pure holding companies face only a 'reduced' substance test.
Banking difficulty
●●●●● Very hard
Stripe / payment processors
Stripe not supported
BVI banking is extremely difficult post-2018 AML reforms. Local banks (Banco Popular, FirstCaribbean, Republic Bank) onboard reluctantly with face-to-face KYC and tier-1 source-of-funds documents. Most BC operators bank in Switzerland, Singapore, Mauritius, or via Wise/Revolut Business — although these neobanks reject many BCs in 'high-risk' activity classes. Plan 4-12 weeks to open a corporate account; rejection is common.
Stripe does NOT support BVI BCs (the entity is unlisted). PayPal Business is region-by-region inconsistent. BCs typically transact via correspondent bank accounts, not direct payment-processor onboarding. This is a major reason BCs are used as passive holdcos rather than operating entities.