Holding Company

The offshore financial industry advances both the protection of a legal entity and its corporate and private assets, as well as the flexible and straightforward international operation. The British Virgin Islands (BVI) are for quite some time one of the most prominent offshore jurisdictions for holding company formation for non-residents and international entrepreneurs. Identical to the incorporation of the BVI offshore company or International Business Corporation, a BVI holding company must be incorporated and managed by a local registered agent, and most have a local registered address. Lately, under pressure of the international community, corporate residency and its advantages requires further corporate local substance and presence. Services that we can help you with.

International holding companies are used for optimization purposes. Whether this relates to international diversification, brand or asset protection, administration, taxation, or licensing depends on the business, location and its activities. Businesses that operate internationally and this is different countries, may wish to establish local presence with a domestic business unit. Sometimes the activities are suitable to be part of a group but not under one legal entity. Group structures then provide for an interesting solution. The internal relationship between the holding company acting as a parent, and business units as subsidiaries is consolidated and subject to various administrative and regulatory exemptions and opportunities.

A stand-alone holding company traditionally holds shares in a subsidiary. Both legal entities are separated from each other, whilst creating a group structure. Even though the group structure brings different legal entities under the same management and control, the individual legal persons are responsible for their own activities. Similar to the corporate personality that separates the legal person from its shareholders and directors, liability of a holding company is not self-evident. Disputes and even severe financial challenges can only be attributed to the responsible legal person. In exceptional circumstances, the court can pierce the corporate veil and impose liability on third parties like directors, shareholders and an international holding company.  

BVI holding companies are often used for asset protection purposes. The holding company may be used to hold for example trademarks or other Intellectual Property, and art or antique collections. Holding companies are companies with legal personality. Therefore they can enter into civil agreements with others. A BVI holding company can therefore also open a safety deposit box for safekeeping purposes. These passive activities require a straightforward business profile to allow market entry in foreign jurisdictions.

Due to its scope and nature, operating a BVI holding company requires attention from the owner. Especially the involvement of subsidiaries requires shareholder meetings, and other important and controllable administrative tasks. From a fiscal perspective many complex rules must be followed to ensure compliance. The cross-border character of the international and offshore holding company does not make things easier either.

British Virgin Islands (BVI) Holding Company

A BVI holding company provides many advantages. Offshore financial centers utilize alternative foreign direct investment by allowing non-residents access to their local business infrastructure and corporate registry. Qualifying offshore holding companies in the BVI may receive additional benefits. The privileges of the offshore financial industry have been abused in the past. As such, stricter local regulation and compliance with international standards to prevent money laundering and terrorism financing resulted in a new legal framework for BVI offshore (holding) companies and International Business Corporations.

Professional entrepreneurs and small business owners willing to go international, or high net worth individuals in need of alternatives for asset protection, should contact us to discuss their needs and find the most appropriate solution. BVI company formations and setting up a holding company in the jurisdiction requires a clear understanding of the objectives of the client. Only when these are clarified and established, action can commence. Therefore, please complete the form below to start the processes.

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