<p style="text-align: justify;">Having a British Virgin Islands (BVI) business formation is highly admired with overseas investors largely because of the zero taxation policy that applies to salary, dividends and profits. Secrecy is guaranteed because public information about shareholders and directors cannot be obtained by a third party as it isn&#8217;t entered onto a public record. As with establishing a company in Europe, there are particular fees which have to be paid. So, what are the financial costs of incorporating an offshore company in the British Virgin Islands?</p>
<h2 style="text-align: justify;"><strong>Authorised Share Capital</strong></h2>
<p style="text-align: justify;">$50,000 has to be raised as Authorised Share Capital and issued accordingly. Only one shareholder has to be in place at an offshore company in the British Virgin Islands before it can be incorporated. Although hundreds of shareholders can be present with at least $1 issued to each individual, this is not necessary. In fact, a solitary investor can provide this capital. Once an offshore company is incorporated, many more investors can become a shareholder. If an offshore company is successful, it can have an increasing number of shareholders because they want to be part of a leading company.</p>
<h2 style="text-align: justify;"><strong>Hiring a Formation Agent</strong></h2>
<p style="text-align: justify;">A Formation Agent can incorporate an offshore company on behalf of their clients. Submitting the relevant documents and finding a Registered Agent that is in the British Virgin Islands, the fees that are charged by a Formation Agent varies from one to another. By searching around for a Formation Agent and asking to see testimonials from their former clients, it can be determined if another should be chosen that is more successful. If an organisation hasn&#8217;t incorporated a company before in the British Virgin Islands, it is recommended that a Formation Agent is hired because it won&#8217;t take long to do so. By hiring a Formation Agent, an offshore company can soon be incorporated and used to trade with.</p>
<h2 style="text-align: justify;"><strong>Renewal Fee</strong></h2>
<p style="text-align: justify;">A Renewal Fee has to be paid on an annual basis. If an organisation doesn&#8217;t pay a Renewal Fee to the government of the British Virgin Islands by the final deadline, it won&#8217;t exist anymore. When a BVI offshore company is incorporated in the first half of the year, the final deadline for a Renewal Fee is 30<sup>th</sup> May. When incorporated from 1<sup>st</sup> July onwards, a Renewal Fee is due by the 30<sup>th</sup> November. Although these are the final due dates for a Renewal Fee, it is recommended that they are paid at the beginning of the year. Therefore, there will be no chance of an offshore company ceasing to exist.</p>
<p style="text-align: justify;">How high a Renewal Fee is depends on how significant Share Capital is. When Authorised Share Capital doesn&#8217;t exceed $50,000, only $350 has to be paid. If Authorised Share Capital is above $50,000, a Renewal Fee comes to a total of $1,100. Although these figures are small in comparison to what is charged in other tax havens, an organisation must remember to pay them if it wants to continue to have a BVI business formation.</p>
<p style="text-align: justify;"><strong>Author Bio</strong></p>
<p style="text-align: justify;">This article was brought to you by BVI.offshoreformations247.com. For more information on how to go about setting up a offshore company registration then drop by their website today for more information on the jurisdictions that they cover.</p>

The Financial Costs Of Establishing An Offshore Site In BVI
