Guide to Securing FCA License in the BVI

Overview: The British Virgin Islands (BVI), known as an “offshore tax haven,” is a highly sought-after forex jurisdiction thanks to its lack of profit, corporation, and capital gains taxes.

The British Virgin Islands (BVI) is a sought-after jurisdiction for financial services, including forex trading, offering a well-established framework for companies in this sector. Situated close to Puerto Rico and the U.S. Virgin Islands, the BVI is known for its offshore advantages.

Financial services in the BVI are overseen by the British Virgin Islands Financial Services Commission (BVI FSC), which regulates and supervises activities such as insurance, banking, mutual funds, and company management. The commission also handles the registration of companies, partnerships, intellectual property, and ships.

Companies seeking to operate in financial services obtain licensing from the BVI FSC, particularly through Securities and Investment Licenses for forex brokerage. The licensing process is straightforward and cost-effective.

Since 2010, the BVI has implemented regulations specifically targeting forex brokers and investment firms, ensuring that all licensed entities adhere to regulatory standards.

Owning a forex brokerage company in the BVI is appealing due to its regulatory status, allowing companies to operate internationally with a flexible and confidential structure. The BVI offers a conducive environment for financial services businesses seeking offshore advantages.

Government Fees and Related Costs:

• Investment Business Licence Annual Fee – $1,500 USD
• Government Company Licence Fee – $450 USD
• Registered Office and Registered Agent – $2,500 USD
• Authorised Representative in the British Virgin Islands – Cost varies based on the Representative chosen
• Professional Fees of Company Support – $1,000 USD

Important Note: Professional Indemnity Insurance (PII) is mandatory or a detailed self-exemption to PII must be provided. The cost of insurance will depend on the chosen service provider, and it must be obtained from a local insurance company.

These fees and requirements are essential for licensing and maintaining operations in the British Virgin Islands. Contact us for detailed assistance with your licensing process and insurance needs.

General Information

• Company Structure

The company structure in the British Virgin Islands (BVI) allows for flexibility with only one shareholder and at least two directors, who can be legal entities without nationality or residency restrictions.

• Confidencialidad

Details of beneficial owners, shareholders, and directors are kept confidential and not publicly disclosed. Professional indemnity insurance (PII) or a detailed self-exemption to PII is required to be maintained.

• Taxation

The BVI offers favorable tax conditions with no capital gains, death duties, inheritance taxes, or requirements for dividends, royalties, or interest payments.

• Other Benefits

Meetings of directors or shareholders do not need to be held in the BVI, and there’s no requirement for an Annual General Meeting. All meetings can be conducted remotely or by electronic means. Annual audited financial statements are required.

Company Requirements

A registered agent is required, but a local office or local employees are not necessary.

Company names in the BVI can be in any language using Roman alphabet letters and must end with specific suffixes like Limited, Corporation, Incorporated, and others. Certain names like those implying banking or government association are restricted.

Nota:

Company names must not be similar to existing ones, imply illegal activities, or suggest royal or government patronage. Foreign language names require translation to ensure they comply with naming regulations.

These features make the British Virgin Islands an attractive choice for establishing a company with flexibility, confidentiality, and favorable tax conditions.

To obtain a license in the British Virgin Islands, the following steps will be undertaken:

• Gathering Personal Due Diligence Documents
  Collecting necessary personal due diligence documents is the initial step.
• Preparation of Statutory Declarations and Application Forms
  Drafting statutory declarations and completing application forms required for licensing.
• Submission of Application to the BVI FSC
  Submitting the license application to the British Virgin Islands Financial Services Commission (BVI FSC).
• Custom-Drafting Anti-Money Laundering Procedures and Business Plan
  Creating tailored anti-money laundering procedures and a comprehensive business plan.
• Preparation of Ad-Hoc Documents
  Compiling any additional necessary documents needed for the application process.
• Supervision of the Process
  Overseeing the entire licensing process to ensure compliance and efficiency.
• Opening a Bank Account for Capital Deposit
  Assisting in opening a bank account for depositing required capital.
• Assistance with Professional Indemnity Insurance
  Facilitating the process of obtaining professional indemnity insurance as needed.
• Finalization of the Process
  Completing all steps and finalizing the licensing process successfully.

These steps streamline the process of obtaining a license in the BVI, ensuring compliance and efficiency throughout.

Documents Required

To obtain a license, an Offshore license will assist in completing necessary application forms and acquiring apostilled corporate documents. Please provide the following documents:

For the Bank (Required for each beneficial owner, shareholder, director, and authorized signatory):

• A notarized copy of a valid passport.
• Copy of proof of residential address (e.g., utility bill not older than 3 months).
• Notarized copy of Letter of Reference from a Bank, Attorney, or Accountant.
• Corporate Documents (Notarized or certified copies by a practicing attorney).
• For the Local Regulatory Authority (Required for each beneficial owner, shareholder, director, authorized signatory, and secretary):
• Curriculum Vitae (CV).
• A notarized copy of a valid passport.
• Copy of proof of residential address (e.g., utility bill not older than 3 months).
• Professional letter or bank reference.
• Notarized copy of University Diploma.

Nota:

Documents not in English must be accompanied by a notarized translation.

Ensure notarization is in English or provide a notarized English translation if necessary.

Additional documents may be requested by the regulatory authority or local bank to verify specific information during the application process.

The offshore license will manage the document collection and submission process to facilitate the license application efficiently.

About Fionza Consulting

Fionza Consulting is a leading international consultancy established in 2010. We specialize in assisting businesses across critical areas such as authorization applications, compliance, training, consulting, and advisory services. Our expertise covers various sectors including banking, e-money, payment services, investment services, consumer credit, crypto-assets, insurance, mortgages, and open banking.

For more information, contact us at marketing@fionzagroup.com or call +86-21-5835-8953. Visit our website at www.fionzagroup.com to learn more about our comprehensive consulting solutions tailored to your business needs.