By Leo Zhang
Lawmakers in the British Virgin Islands have approved some minor changes in the BVI Business Companies Act to facilitate corporate registration in the first major review of the law since its passage in 2004.
During a House of Assembly sitting late last month, an 84-clause amendment bill was passed to clarify several parts of the existing law and update its legal definitions, according to the BVI Beacon newspaper.
The main revision is to broaden naming rules for companies registered during the Act, a move that will make the territory more attractive for enterprises looking to register; the BVI Beacon newspaper quoted Premier Dr. Orlando Smith as saying during the HOA sitting.
Under the new provisions, foreign characters will be allowed to be used in company names and old company names could be re-used, according to Dr. Smith. The amendment also detailed the procedures that will be undertaken at the BVI Financial Services Commission Registry of Corporate Affairs when registered agents seek to make certain changes to the BVI-registered companies they administer.
In an earlier report, the BVI Beacon quoted Nadia Menezes, a senior associate at the BVI office of the law firm Appleby, as saying that though the original Business Companies Act is only eight years old, the proposed changes will help keep the BVI internationally competitive as a financial services jurisdiction.
BVI has long been considered as a choice of location for Chinese companies in global expansion and overseas listings. China signed a tax information exchange agreement in December 2009 with BVI. It officially took effect on January 1, 2011.
For Chinese investors, there are quite a few advantages of using the BVI, including tax benefits, the establishment of TIEA agreements, competitive offerings and a swift time to market.
Under the corporate act, BVI Business Companies not operating in the BVI and with no BVI based assets are exempt from the payment of taxes in the BVI. Companies limited by shares are the most popular corporate type in BVI and the company can be authorized to issue any number of shares or an unlimited number of shares. There are no minimum paid-up capital requirements.
or Chinese people who prefer to use Chinese characters or their existing names in China, the revision of the law can save them a lot of trouble, said Christina Wang, an investment advisor with the Bank of Communications.
