British Virgin Islands : Economy

In the British Virgin Islands, the main currency is the United States dollar. However you will still find some banks which keep accounts in sterling as well. The main sectors of the local economy are offshore business such as offshore company formation and tourism. There are other types of activities which also participate to the economy of the BVI such as construction, rum distilling, exports in fruits and vegetables and fishing. Tourism represents an important part of GDP (almost 50%) which contributes to the islands’ economy with millions of dollars. In the BVI, offshore business has developed very well. At the end of 2008, we could count 400,000 active BVI IBC’s (BVI offshore company). The amount of new offshore company formation reached 9,000 only during the final quarter of 2008. The BVI have all the advantage of a good offshore business centre. Indeed, they offer a good level of confidentiality, stability, a good reputation, etc. There are different activities in the offshore industry such as mutual funds and insurance, trust management. The lack of encouragement with regards to banking industry could be considered as a defense against money-laundering.

Business Environment

In order to be able to do business within the BVI, a Trade License will be required from the Trade and Investment Promotion Department. Many documents will need to be provided such as the application form, a financial statement, police record, business references and financial details of the business for which one is applying. The BVI have very good infrastructures for business activities. The use of the English as an official language and the legal system inspired from the English law make the BVI a very efficient business centre. Indeed the important amount of offshore companies, insurers and trusts can benefit a well-developed professional service sector.

More information about this jurisdiction : Demography - Types of company - Offshore industry