British Virgin Islands
SUPPLEMENT - SETTING UP SPECIAL PURPOSE VEHICLES - May 23, 2005
The primary historical reasons for the use of the BVI as a
centre for incorporation of SPVs are not complex:
a tax neutral regime with no corporate, income or capital
gains taxation, and an absence of withholding;
no exchange controls or currency risk external to the
transaction (the BVI currency is the US Dollar);
speed and low cost of set up;
regulation at local service provider level and not on debt
issuance itself with the result that no specific regulatory
approval will be required or costs imposed; and
an attractive legal framework in both corporate and trust
spheres.
Few of these reasons are different from those in other relevant
jurisdictions. But a triumvirate of legislative initiatives is set
to mark the BVI apart from its competitors. These legislative
initiatives are at different stages: amendments to the trust
legislation came into force on March 1...
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