about BVI
(Click Map to enlarge)
In the British Virgin Islands or the BVI, you will find a stable and mature political system, a sound judiciary, effective and flexible international commercial legislation as well as a first class telecommunications system that beckons investors because of its suitability to their needs. The waters around the islands are calm and conducive to sailing, hence the claim that the BVI is the "Sailing Capital of the World".
Business or relaxation, the BVI welcomes you.
Location
The Territory of the British Virgin Islands ("BVI") comprises an archipelago of some 60 islands and cays, many of which are uninhabited. The islands are located 60 miles due east of Puerto Rico. The two main islands are Tortola, where the capital, Road Town, is situated and Virgin Gorda. The islands were named by Christopher Columbus in 1493, after St. Ursula and her 11,000 virgins.
Political System
The Territory is a British Overseas Territory. The government consists of a Governor appointed by the British Crown and an elected House of Assembly. The Governor is the local representative of Her Majesty, the Queen. Elections to the House of Assembly are held every four years.
Language
The Official language of the Territory is English.
Monarch Queen Elizabeth II
Governor David Pearey
Premier Hon. Ralph T. O'Neal
National Anthem "God Save the Queen"
Flag Union Jack
Territory status Non-Sovereign, overseas territory of the United Kingdom, internal self-governing
Legal system English Law
Judicial Branch Eastern Caribbean Supreme Court
Largest Island Tortola
Capital Road Town, Tortola
Language English (official), Spanish
Population 28,882 (2009 est. based on 2005 census)
Religion Christianity (major), Hinduism, Islamic Faith
Airport & Code Terrence B. Lettsome International Airport (EIS)
Monetary Unit US Dollar. Major credit cards are accepted in many- but not all establishments.
Calling Code 1 (284)
Economy One of the most prosperous in the Caribbean; highest income generators – tourism and financial services.
Banks Bank of Nova Scotia, National Bank of the Virgin Islands, Banco Popular de Puerto Rico, VP Bank (BVI), First Caribbean International, First Bank Virgin Islands.
Sales Tax No Sales Tax
Departure Taxes $20.00 per person leaving by air, $5.00 leaving by sea and $7.00 for cruise ship passengers.
- Mutual (Hedge) Fund Jurisdiciton
The British Virgin Islands (BVI) is an attractive jurisdiction for hedge funds. The legislative structure in the BVI is modern and internationally recognized. The authorities have successfully created a framework that is rigorous in terms of anti-money laundering and know-your-customer requirements.
The BVI offers a suitable level of regulation for private and professional funds combined with flexibility and great value for money. It is considerably less expensive to establish a fund in the BVI than comparable jurisdictions such as the Cayman Islands. Hedge funds domiciled in the BVI would benefit from the availability of higher quality banking and custody services in the jurisdiction.
As the up-and-coming premier jurisdiction for the formation of investment funds, having approximately 2,800 funds registered or recognized under the Mutual Funds Act 2010 (the Act), the primary legislation governing the formation and operation of hedge funds in the British Virgin Islands. These funds are regulated by the Financial Services Commission (the Commission), the financial regulator in the British Virgin Islands, which was established by and whose powers primarily originate from the Financial Services Commission Act 2001. - The Act requires all investment funds falling within its definition of “mutual fund” to be recognized or registered with the Commission. The Act further requires all managers and administrators of mutual funds to be licensed if the manager or administrator is incorporated in or carries on its business from the British Virgin Islands.
- The Act defines a “mutual fund” as a company incorporated, a partnership formed, a unit trust organized or other similar body formed or organized under the laws of the British Virgin Islands or of any other country or jurisdiction which: a) collects and pools investor funds for the purpose of collective investment; and b) issues shares (defined as shares in the share capital of a company, an interest in a mutual fund partnership and a unit in a mutual fund unit trust) that entitle the holder to receive on demand or within a specified period after demand an amount computed by reference to the value of a proportionate interest in the whole or in a part of the net assets of the company, the partnership, the unit trust or other similar body, as the case may be; and includes: i) an umbrella fund whose shares are split into a number of different class funds or sub- funds, and ii) a fund which has a single investor which is a mutual fund not registered or recognized under the Act.
- Fund Vehicles
Sponsors and fund managers considering setting up investment funds in the British Virgin Islands may choose from the following range of possible vehicles:
• a BVI Business Company
• a Limited Partnership
• a Unit Trust - The vast majority of British Virgin Islands investment funds are set up as companies limited by shares under the BVI Business Companies Act, 2004.
- Categories of Fund
The three categories of regulated fund that are most commonly used are as follows:
• a private fund, which is a mutual fund whose constitutional documents specify that it will have no more than 50 investors or that the making of an invitation to subscribe for or purchase shares is made on a private basis;
• a professional fund, which is a mutual fund the shares in which are only made available to professional investors and the initial investment by investors not less than US$100,000 (or equivalent); and
• a public fund, which is a mutual fund that is neither a private fund nor a professional fund. - Private funds must be recognized before they carry on business or manage or administer their affairs in or from within the British Virgin Islands. Private funds are currently not required to have their accounts audited or filed with the Commission.
- Professional funds may carry on business or manage or administer their affairs for a period of up to 14 days without being recognized under the Act. Policy Guidelines suggest that a fund will be regarded as having commenced its business when a prospectus, or other document the purpose of which is to make an invitation to purchase or subscribe for shares of the fund, is published. Professional funds are currently not required to have their accounts audited or filed with the Commission. Public funds must be registered before they carry on business.
- Public funds may not make an invitation to the public or any section of the public to purchase shares unless prior to such invitation they publish in writing a prospectus, approved by and signed on behalf of the fund’s directors or similar governing body, and file a copy of that prospectus with the Commission. A public fund is required to have a custodian who is functionally independent of the fund’s manager or administrator and must also maintain adequate accounting records and prepare audited financial statements in respect of each financial year and keep such accounting records and financial statements available for examination by the Commission, any authorized person and all investors.
- No restrictions on Strategy
There are no restrictions on the strategy a fund may pursue, provided it is not otherwise in breach of the laws of the British Virgin Islands, no limits on leverage taken by the funds and no rules imposed on funds as to how they value their assets. - Fund Annual Returns
All private, professional and public funds must submit a return to the Commission no later than 30 June in each year. The return requires funds to make disclosures to the Commission about their basic prudential and governance information and summary financial information including details of its asset allocation. The return does not require any information on the identity of investors or the specific investments within the fund’s portfolio. The period which must be covered in the return relates to the calendar year ending 31 December of the previous year. - Public Fund Prospectus Requirements
Registered public funds are required to have a prospectus, which must be filed with the Commission. Every prospectus is required to provide full and accurate disclosure of all information as investors would reasonably require and expect to find for the purpose of making an informed investment decision. An investor in a public fund has a statutory right of action for rescission or damages in respect of any misrepresentation (which includes an omission to disclose required information) contained in the fund’s prospectus. Where the required information ceases to be accurate in a material particular, the fund must publish an amendment to the prospectus within fourteen days of the change occurring and file the same with the Commission. - Location of Functionaries
The Commission requires a fund wishing to be recognized or registered to submit an application which must include evidence of the fund’s status together with details of each of the fund’s functionaries (being the investment manager, investment advisor, administrator and custodian). - In considering an application for recognition or registration, the Commission has issued Policy Guidelines which require that the manager, investment advisor, administrator and custodian of a British Virgin Islands mutual fund be incorporated in either the British Virgin Islands, or a “recognized jurisdiction”, which, for the purposes of the Mutual Funds Act, are currently as follows: Australia, Italy, Bahamas, Japan, Belgium, Jersey, Bermuda, Luxembourg, Canada, Malta, Cayman Islands, Netherlands, France, Singapore, Germany, Spain, Gibraltar, Sweden, Guernsey, Switzerland, Hong Kong, United Kingdom, Ireland, USA, and the Isle of Man.
- However, the Policy Guidelines also indicate that functionaries incorporated in other jurisdictions may be acceptable if the jurisdiction is regarded by the Commission as having a prudent system of regulation and supervision of mutual funds business.
- Manager’s and Administrator’s Licenses
An application for an administrator’s or a manager’s license must include a statement of the financial and human resources and administrative facilities available to the applicant for the competent and efficient conduct of its business. A license will not be granted unless the Commission is satisfied that the applicant:
a) is a fit and proper person to be engaged in the business proposed;
b) has available adequate knowledge, expertise, resources and facilities necessary for the nature and scope of the business proposed; and
c) has appointed an auditor satisfying such conditions as may be prescribed by the Commission. - Anti-Money Laundering
All funds, managers and administrators must comply with the Anti-Money Laundering regulations of the British Virgin Islands. - Tax
British Virgin Islands based funds, managers and administrators are not required to pay any income taxes to the British Virgin Islands Government under the British Virgin Islands Income Tax Act. Furthermore, the investors in such entities will not have to pay any British Virgin Islands income taxes or capital gains taxes on payments those investors receive. Provided the entity has no employee in the British Virgin Islands, it will have no liability to British Virgin Islands payroll taxes. Capital gains realized with respect to any shares of a fund are exempt from income tax in the British Virgin Islands and there are no estate, inheritance, succession or gift taxes payable in the British Virgin Islands with respect to any shares of a fund