ROADTOWN, BVI The Legislative Council of the British Virgin Islands (BVI) has enacted into law a bill which seeks to strengthen the Territory's appeal to the international financial services industry.
Orlando Smith, the Territory's Chief Minister has named the legislation, known as the BVI Business Companies Act 2004, a very "modern, sophisticated and innovative," piece.
The initial impetus for the development and the drafting of the new BVI Business Companies Act was the international pressure that has been exerted on all financial services centers," said Smith.
Being one of the British Overseas Territories, the BVI must comply with the European Union Code of Conduct on Business Taxation. That piece of legislation seeks to have alllocal and offshore companies treated equally for tax
purposes.
Tortola's reaction to that demand resulted in the introduction of a zero income tax regime, which goes into effect next month. The new law erases the old Local Companies Act and the International Business Companies Act and blankets the incorporation, management and operation of various types of companies including the relationships between companies and their directors.
Just under three months ago, the BVI commemorated the 20th Anniversary of the International Business Companies Act, which provided the Territory with worldwide recognition as an offshore center. The Territory now boasts in
excess of 600,000 International Business Companies (IBCs).
By drafting new legislation that builds on the very solid foundations laid by the IBC Act, the territory is once again positioning itself ahead of the game while ensuring that its financial sector-related programs are fully compliant with international standards," Chief Minister Smith noted, adding that the new law will result in greater attraction for what was termed as legitimate cross-border business.
