BVI Continues To Top IBC Registration Stakes

by Amanda Banks, Tax-News.com, London

26 January 2006

Figures released by the BVI International Finance Centre yesterday revealed that some 57,000 new International Business Companies (IBCs) registered in the British Virgin Islands in 2005, more than any other offshore jurisdiction and the third highest number of new incorporations in the BVI in 20 years.

The bumper year of company registrations takes the total number of BVI IBCs to almost 700,000 since their introduction in 1984.

The jurisdiction also witnessed significant growth in the registration of BVI Business Companies since the enactment of the BVI Business Companies Act (BVI BCA) in January 2005. The BVI BCA provides for the incorporation of both internationally operating companies and companies doing business in the BVI under one statute. Over 1,100 companies were registered under the new Act in 2005.

The BVI BCA has been introduced over a two-year transitional period and aims to combine the virtues of the International Business Companies Act with a range of attractive, flexible and forward looking new features. As of January 2006, all new companies incorporated in the BVI will be registered under the new statute.

Humphry Leue, Chief Operating Officer at the BVI International Finance Centre, comments: “2005 was another terrific year for company registrations in the British Virgin Islands. A sustained period of growth has seen over 270,000 new businesses register in the BVI in the past five years, demonstrating the high level of confidence that the international business community has in the BVI as a leading centre for conducting business. The British Virgin Islands will continue to listen to the needs of the international business community and implement new measures accordingly, where appropriate, to meet those needs. The shift in 2005 towards company registrations under the new BVI Business Companies Act is testament to this approach. We look forward to an equally exciting 2006.”

The BVI IFC has played a pivotal role in the promotion and marketing of the BVI as a leading financial centre. Established in 2002 as part of the Government’s growing commitment to the financial services industry, the aim of the IFC is to give a voice to the BVIs financial sector. The IFC is committed to ensuring that the BVI retains the unique balance it has created in having a sound regulatory framework, an entrepreneurial business community and a government that is committed to developing innovative legislation

The launch of the Centre marked the final stage in the government’s plans to separate the marketing/promotional and regulatory/supervisory functions. Regulation is now the sole responsibility of the BVI Financial Services Commission, which was also established in 2002.

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