Establishing an Investment Business in British Virgin Islands in 2025
The British Virgin Islands (BVI) has firmly established itself as a prominent and respected jurisdiction for financial and investment services. Its standing on the global stage is largely attributed to the proactive oversight and guidance of the BVI Financial Services Commission (FSC), which serves as the regulatory authority for all financial activities conducted within and from the territory. By fostering a strong regulatory environment and maintaining compliance with international standards, the BVI continues to attract businesses and investors seeking a stable, transparent, and reliable base of operations.
The role of the BVI FSC has been instrumental in positioning the jurisdiction as one of the most prominent offshore financial centers in the Caribbean. The Commission’s mandate centers on protecting the economic interests of the jurisdiction while preserving its status as a well-regulated and internationally trusted financial hub. This is achieved through the enforcement of industry-wide compliance and the continuous development of effective regulatory frameworks.
As a result, the BVI has seen increased interest in its suite of securities and investment business licences. These are particularly appealing to innovative start-ups, established financial institutions, and firms with ambitions to extend their global reach through a strategically located and well-regarded jurisdiction. The strength and credibility of the BVI’s regulatory system make it an attractive choice for those looking to operate in a secure and supportive business environment.
In this article, the SALVUS Investment Firms Licensing team discusses the establishment of an Investment Business in BVI, its advantages and other important information on this matter, as follows:
1. Why are businesses established in BVI?
2. What is the applicable Regulatory Framework for Investment Business?
3. License Categories & Business Activities
4. Capital Requirements
5. How SALVUS can support your licensing application
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1. Why are businesses established in BVI?
The BVI presents a compelling proposition for businesses aiming to establish an international presence, thanks to its distinctive combination of political stability, economic predictability, and financial advantages. As a British Overseas Territory, the BVI enjoys a solid foundation of governance and legal certainty, underpinned by attractive tax conditions that include no corporate income tax, no capital gains tax, and no withholding taxes. The absence of value-added or sales taxes further contributes to a tax-efficient regime, significantly reducing the fiscal burden on companies.
What distinguishes the BVI even further is its balanced regulatory environment. Supervised by the BVI FSC, the jurisdiction offers a well-developed yet adaptable framework that enables businesses to operate smoothly while aligning with international regulatory expectations. The BVI’s commitment to compliance, especially in areas such as anti-money laundering (AML) and counter-terrorist financing (CFT), reinforces its standing as a trustworthy financial center.
The administrative ease of doing business in the BVI is another key attraction. Company formation is swift and cost-effective, and operational expenses remain relatively low. The jurisdiction also places a strong emphasis on corporate privacy. Companies incorporated in the BVI are not obligated to make their financial statements or ownership information publicly available, which makes it an attractive option for businesses that value discretion and confidentiality.
International recognition of the BVI as a credible and forward-looking financial hub continues to strengthen its global appeal. Businesses also benefit from flexible structures, robust asset protection laws, and a convenient time zone that supports cross-border activities across both North American and European markets. Collectively, these features position the BVI as a premier destination for firms pursuing a secure, efficient, and internationally respected base for investment operations.
2. What is the applicable Regulatory Framework for an Investment Business?
The Securities and Investment Business Act, 2010 (SIBA) serves as the foundation of the BVI’s regulatory regime for entities involved in securities, investment services, and associated activities. Introduced to align local practices with globally accepted principles, SIBA ensures that firms operating within the jurisdiction comply with standards that promote transparency, safeguard investors, and uphold the integrity of the financial markets.
In addition to SIBA, Investment Businesses must comply with the broader legislative and regulatory framework, which includes:
- The Regulatory Code,
- The Counter-Terrorism Act,
- The Public Funds Code,
- The Mutual Funds Act,
- The BVI Business Companies Act, and
- AML/CFT laws such as the Anti-Money Laundering Regulations and Code of Practice.
Contact us at info@salvusfunds.com if you are interested in establishing an Investment Business in British Virgin Islands; our Investment Firms Licensing team is ready to answer your questions.
3. License Categories & Business Activities
An Investment Business Licence grants its holder the authority to establish a trading platform in the BVI and to trade in securities and similar financial products on behalf of clients. As shown in the table below, there are seven categories of Investment Business Licences that may be issued in the BVI, each authorising the holder to conduct a distinct set of investment activities.
| License Category | Authorised Activities |
|---|---|
| Dealing in Investments | Buying, selling, subscribing for or underwriting investments as an agent or principal; |
| Arranging Deals in Investments | 1. Making arrangements with a view to: a) another person (whether as a principal or an agent) buying, selling, subscribing for or underwriting a particular investment, being arrangements which bring about, or would bring about, the transaction in question; or b) a person who participates in the arrangements buying, selling, subscribing for or underwriting investments. |
| Investment Management | 1. Managing investments belonging to another person in circumstances involving the exercise of discretion (other than as manager of a mutual fund); 2. Acting as manager of a mutual fund; |
| Investment Advice | 1. Advising a person on investments (other than as the investment adviser of a mutual fund) where the advice: a) is given to the person in his capacity as an investor, or a potential investor, or in his capacity as agent for an investor or potential investor; and b) concerns the merits of the investor, or a potential investor (whether as principal or agent). 2. Acting as the investment adviser of a mutual fund. |
| Custody of Investments | 1. Acting as custodian or depository of assets belonging to another person, other than as custodian of a mutual fund or trustee of unit trust; 2. Acting as custodian of a mutual fund; 3. Acting as the trustee of a unit trust. |
| Administration of Investments | 1. Administering or arranging for the administration of assets belonging to another person (other than as administrator of a mutual fund); 2. Acting as administrator, registrar or transfer agent of a mutual fund. |
| Operating an Investment Exchange | Providing a facility, whether by electronic means or otherwise, for the orderly trading of investments or for the listing of investments for the purposes of trading, by members of the investment exchange. |
4. Capital Requirements
The BVI FSC assesses the sufficiency of an applicant’s capital resources by reviewing its business plan and projected financial performance over a defined timeframe. Rather than applying a uniform capital threshold, the FSC adopts a risk-based approach, tailoring capital requirements to the specific nature, scale, and complexity of each applicant’s proposed operations. Applicants must demonstrate that their capital base is adequate to support ongoing activities and resilient enough to withstand potential stress scenarios and unforeseen operational challenges.
5. How SALVUS can support your licensing application
The SALVUS Investment Firms Licensing team employs a structured and efficient project management methodology tailored to the unique needs of each licensing project. Leveraging our in-depth regulatory knowledge and industry expertise, we begin by understanding your business vision and strategic objectives. Based on this, we propose the most appropriate licensing categories that align with your business plan.
We work in close partnership with your internal team to gather all required information and meticulously prepare the necessary documentation, ensuring full compliance with all relevant regulatory requirements. As your reliable point of contact with the regulatory authorities, we streamline the entire licensing process, delivering a smooth, efficient, and transparent experience from initial preparation to final approval.
Contact us at info@salvusfunds.com if you are interested in establishing an Investment Business in British Virgin Islands; our Investment Firms Licensing team is ready to answer your questions.
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The information provided in this article is for general information purposes only. You should always seek professional advice suitable to your needs.