How To Buy A Shelf Company in the British Virgin Islands (BVI)?
Shelf companies are ideal for immediate utilization, as they bypass the conventional business incorporation and documentation procedures. They are straightforward and provide credibility, depending on your company’s history and reputation. When considering the formation of a shelf company, the British Virgin Islands (BVI) is the preferred destination. This jurisdiction facilitates the acquisition of a shelf company within a minimal timeframe.
Therefore, if you are considering purchasing a ready-made company in the BVI, take the following criteria into account.
Benefits of Purchasing a Ready-Made Company in the BVI
Buying a shelf company in the BVI gives you the following benefits:
- Free From Initial Deposits
When proceeding with the BVI offshore company formation, it is essential to pay an initial deposit. However, when purchasing a ready-made company, this process can be bypassed. This approach saves both time and money, allowing you to focus on other operational activities.
- Instant Business Operation
Since the company is already incorporated, you can be involved in business operations immediately.
- Easy Transfer of Ownership
One of the great perks of setting up a shelf company in the BVI is the smooth transfer of ownership. It’s usually within just 24-48 hours, making everything hassle-free.
- Enhanced Credibility
Having a company with a solid history really adds to its credibility. Also, it can make it much easier to get loans and credit, giving you more confidence and opening up new opportunities.
- Helps in Building Trust
Since a shelf company has the image of a well-established business, it naturally builds trust with clients, partners, and other financial institutions. This helps create a positive relationship that benefits everyone involved.
Steps to Purchase a Ready-made Company in BVI
Buying or purchasing a ready-made company in the British Virgin Islands can be done with the following simple steps:
i) Identify a Suitable Shelf Company
The primary step is to choose a service provider who specializes in shelf company formation. This individual can assist you in identifying suitable options, such as the company’s age, business history, and bank account availability.
ii) Undergo Due Diligence
Secondly, take some time to thoroughly research your chosen company. This includes reviewing its legal and financial standing, auditing bank statements, and verifying other important documents to help identify any potential risks. By doing so, you’ll gain a clearer understanding and be better prepared.
iii) Involved in the Ownership Transfer
Once you are done with the due diligence process, the next step involves transferring ownership. The service provider will help you in transferring of ownership of the company to you.
iv) Update Statutory Documents
Upon the completion of the ownership transfer, all modifications to the company’s documents, such as the Memorandum and Articles of Association and the beneficial ownership, must be duly registered with the BVI authorities.
v) Open a Bank Account
If the company does not possess an existing, operational bank account, it will be necessary to establish a new corporate bank account. This can be accomplished either within the British Virgin Islands (BVI) or another jurisdiction such as Seychelles, Belize, or any other.
Is Buying a Shelf Company in the BVI Really Expensive?
Acquiring a shelf company in the British Virgin Islands (BVI) can be expensive, especially when considering an age-old entity.
While a standard shelf company generally incurs costs comparable to establishing a new entity, older companies tend to be more costly. However, it is necessary to pay government fees, registered agent fees, and registered office fees for all the years since the company’s initial registration.
Things To Consider Before Purchasing a BVI Shelf Company
Here are the essential points you have to take into account before purchasing this type of company:
- Investigate the company’s past activities to identify liabilities or compliance issues.
- Ensure a clean compliance record.
- Verify all beneficial owners and directors, ensuring proper documentation and transparency.
- Check the company’s bank account functionality and requirements.
These are the essential points to consider when purchasing a shelf company. Thorough research is crucial prior to making such a decision. Therefore, before engaging in the process, assess your location, its requirements, and other relevant factors that support your decision.
