The British Virgin Islands have the basic offshore financial center attributes: stable, capitalistic government, good communications, an educated population, no exchange controls, and a tax and regulatory climate that encourages offshore activity.

The country is a British Dependent Territory, with locally elected members and a Governor appointed by the British Crown. The language is English and the currency is the U.S. dollar. The center of this large-scale activity is a clutch of ordinary-looking offices in a Road Town, Tortola where 50 or so corporate agents, including well-known names such as Ansbacher and Matheson, compete for this lucrative business.

The BVI government recognizes the importance of its offshore business. Following the termination of the income tax treaty with the U.S. in 1982, the International Business Ordinance was introduced in 1984. This provides for the incorporation of companies exempt from BVI taxes. The success of the financial sector in the British Virgin Islands (BVI) is due almost exclusively to its role as the world's leading jurisdiction for international business companies (IBCs).

Unlike the Cayman Islands and other Caribbean offshore centers, BVI does not have a diversified financial services industry, but what it does it does well. In the 11 years since BVI, with the blessing of the British government, passed the International Companies Ordinance, the islands' company incorporation services industry has blossomed

ADVANTAGES OF THE BRITISH VIRGIN ISLANDS

Political Stability
A stable and established political structure is essential to the continued success of any offshore financial center. This is evident from the decline of many other offshore areas due to political uncertainty and turmoil. The strength and success of the British Virgin Islands as a low tax center is in no small measure attributable to its longstanding and stable democratic political system. Legal Structure and Expertise.

Principals requiring the use of offshore facilities will want and need to understand the legal framework of the area within which they wish to operate. The legal system in the British Virgin Islands is based upon English law and is of Anglo-Saxon origin and therefore offers a tried and tested system with which many international operators will be comfortable and familiar. Furthermore, it is a system which is suited to company structures and which fully recognizes the Anglo-Saxon trust concept. This fact is most often crucial to the success of an international structure.

The British Virgin Islands can also boast a highly developed infrastructure of skilled professionals, which is necessary to support an efficient offshore center.

Communications
The British Virgin Islands has frequent same day air communications with North America and Europe. Telephone, telex and facsimile facilities compare favorably with any international financial center and worldwide postal and courier services are available on Tortola.

Language
Certain offshore centers prove cumbersome when legal and other documents need to be translated into the official language of the territory. Apart from the obvious inconvenience caused, there are, as a result, additional costs to be borne with no benefit accruing therefrom. The official language of the British Virgin Islands is English and therefore these problems do not arise here. Communications are also, as a result, far easier.

Confidentiality
Unlike the majority of offshore centers, the British Virgin Islands offer the discretion of not having to disclose the beneficial ownership of companies to any authority or person in the British Virgin Islands. Furthermore, as seen earlier, British Virgin Islands IBC's have the power to issue bearer shares..