What are BVI companies? BVI is the abbreviation of British Virgin Islands. Conceptually, BVI companies are corporation that can be formed by one or more persons or entities. The company’s registration is based in the British Virgin Islands. A BVI company is well-known to be a tax haven. A tax haven is like a country which can offer foreign individuals and businesses a low tax liability. A BVI is based on a politically and economically stable environment. Being a tax haven, the BVIs share little to no financial information with government authorities or departments that concern with taxation. Most of the time, entrepreneurs and/or owners of the BVIs do not actually live in the regions within the British Virgin Islands. The benefits of a BVI is that it allows the entrepreneurs and/or owners and companies/individuals to locate and operate out of the BVI regions but still get the advantages of a BVI.
Usually, a BVI possesses strong political stability and a low international profile. An important reason that entrepreneurs and/or individuals are using BVIs for international business activities is because it can avoid much tax (which is cost for running a company especially when it is in its initial stage). Think of a BVI being an offshore company that has strict confidentiality provisions and a flexible organizational structure (when it is necessary). British Virgin Islands has joined the world of offshore banking in the 1980s, and has an independent judicial system based on English common law. A large portion of the gross domestic product of British Virgin Islands would have come through offshore financial entities, and its official currency is the US dollar currency.
British Virgin Islands as an island has become a very popular location for international and/or global companies to incorporate since the British Virgin Islands International Business Companies Ordinance was enacted in the year of 1984. To make the process simpler, British Virgin Islands has removed the discrimination between the two types of companies i.e. offshore and local companies in the island. This has a positive effect to make BVI becoming a more accessible company type in the world.
A different alternative that an entrepreneur may consider is company incorporation in Hong Kong. Hong Kong is much of a modern city, and it has everything that is needed for living. The nightlife living style is available. The public transportation basically covers most parts in Hong Kong, and that is the reason you can commune to almost every corner in HK very efficiently. The reasons behind are that you cannot deny the facts: Hong Kong possesses a business-friendly tax system, an international financial center, a gateway to access all the business opportunities in Mainland China, and a free economy.