The process of launching your business in the BVI / British Virgin Islands is very straightforward. The first thing that you need to do is to choose the right corporate structure for your crypto project. There exist several types of companies in BVI, including Restricted Purpose Company, Company Limited by Shares, and so forth.
How to open a crypto company in BVI?
It’s unusual to seek advice from specialized lawyers or companies, so consult one if you’re not sure which structure will be the most beneficial. Then, you reserve a company name and appoint a registered agent. The process of reserving a company name might take a few days or even weeks, but it’s an integral part of the process.
After that, you gather all the required documentation, pay the appropriate taxes and fees (if needed), and submit them for review. After that, you open a business account in a bank and apply for a crypto license in BVI.
Depending on the outcome, there might be a number of further steps. Some companies are asked to provide additional information or re-submit applications.
What documents are needed for a crypto license?
The package of documents required for a crypto license doesn’t differ significantly from the ones you will need to apply for a regular business license in almost any other country. You will be asked to provide IDs of all stockholders and directors, proof of residence, articles of association, and various other key documents that prove the company’s identity and authority.
Generally speaking, you should submit legal documents, which are usually required by any governing authorities while applying for any sort of license. None of the requirements set by the BVI authorities stand out, so expect the same process and the same required documentation. A specialized company can help you with preparing the documents since they usually have a checklist.
Which companies can help with obtaining a crypto license in the BVI?
There exists a plethora of businesses that specialize in helping crypt o projects with their application. The vast majority of these companies don’t operate in the British Virgin Islands, but have at least one employee who is well-versed in the island’s laws and regulations.
These types of businesses have a large number of customers, so their rates are generally affordable. The law firms specializing in helping with registration can guide you through every step of the process and help ensure that the jurisdiction you picked is actually the most suitable one for your project.
If, for instance, you stand to benefit more from a different jurisdiction, they will make sure you pick the right one for your business and take care of all of the logistics related to your crypto project. It’s a really convenient service that continues to strive in a world where more and more businesses are applying for licenses to operate in offshore jurisdictions and other business-friendly countries.
Conditions for obtaining a crypto license in the BVI?
There are certain conditions for the issuance of a license. The key requirement outlined by the Financial Services Commission include:
- The local office of the company – If the company does not have a place of business, it won’t be able to receive a proper license.
- Business plan – It’s a condition for acquiring a license if the company is going to trade in virtual currencies or carry out any other activities.
- One-page assessment of the company’s current situation and future plans – The license granting process also ensures that the company has financial stability and is likely to be around for a long time.
- Several legal documents from participants and the business entity itself, including certificates of no past criminal record – There’s a lot of data that will be checked in the course of this process.
Why choose BVI to register a crypto company?
There exist several advantages to operating a company in the BVI. Some of them are:
- Lax registration requirements. When you compare BVI to other jurisdictions, there are so many reasons for choosing this offshore jurisdiction, including laxer registration procedures.
- There’s no income tax. If you can prove that your activities are conducted outside of the country, you are not obliged to pay income tax.
- Operational costs are very low. When compared to other similar jurisdictions, it’s obvious that BVI comes up at the top. It just doesn’t cost a lot to keep the operations running here.
- Business-friendly regulatory framework and institutions. Instead of imposing taxation, you can enjoy protection from the local lawyers, accountants, and other financial experts.
- There’s no additional pressure on ICOs. Several countries put considerable effort into regulating ICOs and similar projects by adding additional responsibilities to their creators. The experience that BVI is building today proves that this approach is not very efficient or effective: they don’t subject ICOs to any additional tax or regulation.
Benefits of BVI for obtaining a crypto license?
It’s important to keep in mind the advantages of having a BVI crypto license, even if it means paying an application fee or seeking outside help from professional companies that specialize in start-up consulting and crypto industry advice. F focus on the top benefits provided by this jurisdiction. They include:
- Personal information concerning directors and stockholders is not to be revealed. It’s a requirement, and there are even penalties involved if the information is shared with others, or provided to unauthorized persons.
- You don’t have to pay taxes. One of the biggest selling points of BVI as a jurisdiction is that it doesn’t impose a tax on virtual currency income. In fact, you don’t have to pay any taxes on gains from activities unrelated to cryptocurrencies as well. Even though this jurisdiction is considered a tax haven, its reputation is still based on sound legal foundations.
- No annual reporting is required. You can operate a company in the jurisdiction without submitting any annual financial reports, compliance statements, or information that could be used for tax audits.
- Decent reputation. BVI is one of the most reputable “tax haven” countries around. The lack of negative attention surrounding this country tells a lot – its economy is fairly stable and there are no financial crises.
