Summary
Since the passage of the Companies Act of 1985 and the International Business Companies Ordinance of 1984, more offshore companies have been formed annually in the BVI than anywhere else in the world. Known as an International Business Company, the IBC cannot trade within the BVI or own real estate there (a different type of company should be used if the purpose of the company is to hold BVI real property) but can trade anywhere else in the world and IBCs from the BVI are well-known and well-respected everywhere.

The BVI does not seek to tax income earned outside their borders. By definition, all of an IBC's income is from the outside. The only payment to the BVI is in the form of the License Fees, essentially the annual franchise tax, which is payable when you form the company and then annually thereafter. These annual fees are $300, $350 or $1,000 and are paid to the jurisdiction by the registered agent (required in the BVI.) As with franchise fees in the US, these fees are based on stock structure.

Population
19,615 (July 2000 est.)

Legal System
English law

Climate
subtropical; humid; temperatures moderated by trade winds

Currency
US currency is used

Location and Size
Caribbean, between the Caribbean Sea and the North Atlantic Ocean, east of Puerto Rico, 18 30 N, 64 30 W. Total Area of 150 sq km