| Companies Trusts Mutual Funds The British Virgin Islands is arguably the world leader in offshore company incorporations. Flexibility has been a critical factor in explaining this phenomenal success. BVI Companies can be used for a wide range of purposes, including acting as a holding company for multinational and global corporations, by trusts for asset protection, collective investment and holding intellectual property. These companies offer the maximum privacy and confidentiality available in a jurisdiction that is well regulated, without being cumbersome and bureaucratic. Companies Both service providers and the British Virgin Islands Government recognize that this success has evolved through prudent regulatory policies developed as a result of the Government’s partnership with the private sector. The International Business Companies Act was introduced in 1984. Since then more than 650,000 companies have been incorporated in the Territory. In 2004 legislators enacted the BVI Business Companies Act, which in effect has consolidated the features of existing BVI corporate legislation - International Business Companies Act and Companies Act - into one modern corporate statute that has adopted the features and flexibility of the requirements of the International Business Companies Act and in addition permits the incorporation of additional types of companies that had until now only been possible under the provisions of the Companies Act. The BVI Business Companies Act further enhances the reputation of the BVI as a leading offshore corporate domicile. Belmont Trust Limited is a licensed registered agent in the British Virgin Islands and can assist with the incorporation of companies. For further information about our corporate services, please contact Belmont Trust Limited. Back to top |
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In 1993 the Trustee (Amendment) Act was passed. It updated BVI statute law by including certain provisions that had previously been effective only if included in the trust instrument. It gives greater flexibility in respect of perpetuities and provides for the establishment of purpose trusts. Additional amendments were brought into force in 2004, to further enhance the reputation of the BVI as an international trust jurisdiction.
The Virgin Islands Special Trusts Act (VISTA) was brought into force on 1 March 2004. The intention of this innovative piece of legislation is to create a trust vehicle to hold shares in corporate businesses, without the obligation on trustees imposed by the “prudent man of business rule”. This rule, which is designed to help preserve the value of trust assets, has made the trust an unattractive vehicle for holding assets that the settlor would want the trustee to retain. In addition, this rule imposes an obligation on the trustee to monitor the conduct of the business and intervene as necessary. This conflicts with the wishes of the typical owner of a family business and renders the family business an unattractive asset for the trustee to consider accepting as an asset to be held on trust.
The shareholder is now able to create a trust that specifically excludes the trustee from management responsibility and permits the business to be retained as long as the directors consider appropriate. Not all BVI trusts are subject to the VISTA trust regime, there must be specific provision in the trust instrument for VISTA to apply. Belmont Trust Limited can assist with the establishment and administration of trusts.
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Mutual Funds
The Mutual Funds Act 1996 regulates the operation of mutual funds and their managers and administrators that carry on business either in or from within the Territory. It also covers funds which are domiciled in the Territory that operate elsewhere and funds which are domiciled elsewhere that are sold in the Territory. The Mutual Funds Act provides for three types of mutual funds – private, professional and public funds. Belmont Trust Limited can assist with the establishment of mutual funds.
