As a British Overseas Territory the BVI has enjoyed years of stable government and has a legal system that is largely based on English law. In addition the International Business Companies (IBC) Act contains provisions for exempting IBC's from BVI taxes and for maintaining confidentiality. Similarly there are no requirements for Trusts to be registered or to file financial statements and this preserves their confidentiality.

The above requirements are of prime importance to the growing number of individuals of high net worth throughout the world who are seeking to protect their wealth by establishing trusts or other financial vehicles in offshore centres.

Companies also place great importance on these requirements as they set up other companies in offshore centres to protect their assets and minimize their tax liabilities.

However, in order to preserve the BVI's reputation as a premier offshore financial center, there are certain diligence procedures which all registered agents are expected to carry out when engaging new clients. For details of these please view our Requirements for Incorporation.