Investment Business – BVI FSC
What is the BVI FSC and what does it do?
The British Virgin Islands Financial Services Commission (BVI FSC) is the autonomous regulatory authority responsible for all financial services business operating in and from within the BVI, enforcing all financial services regulatory and registry legislation. The Commission’s mission is to uphold the integrity of the territory as a well-regulated finance centre and safeguard the economic interests of the territory.
Why establish an Investment Business in BVI?
An Investment Business Firm in BVI benefits from:
- BVI’s stability, favourable tax policies, and a well-regulated financial environment, having a tax-efficient environment with no corporate income, capital gains, or withholding taxes.
- The absence of VAT or sales tax, which collectively reduces the overall tax burden on businesses.
- BVI’s robust yet flexible regulatory framework overseen by BVI FSC, allowing firms to operate effectively while maintaining compliance with international standards.
- The territory’s strong reputation for regulatory compliance, particularly in anti-money laundering (AML) and combating the financing of terrorism (CFT).
- An efficient incorporation process, with low setup and operational costs, offering high levels of confidentiality and privacy, as financial statements and ownership details are not required to be publicly disclosed.
- The BVI’s global recognition as a reputable financial centre, coupled with its stable political and economic environment.
- A range of flexible business structures, strong asset protection laws, and a convenient time zone for conducting business with both North American and European markets.
License Categories & Business Services
An Investment Business Firm license provides permission to its holder to establish a trading platform in BVI and trade securities and similar products on behalf of clients. As per the table below there are seven categories of Investment Business licenses that can be issued in the BVI, authorised to conduct different sets 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). |
| 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. |
Regulatory Capital Requirements
The BVI FSC evaluates the adequacy of an applicant’s capital resources based on its business plan and financial projections over a specified period. As such, there is no predetermined or fixed capital requirement across all businesses. Instead, the required capital will depend on the specific risks and nature of the applicant’s operations. It is crucial that applicants demonstrate their capital resources are sufficiently robust to support their business through various scenarios and unforeseen challenges.
Application Fees
Fees payable to BVI FSC for the examination of the application depend on the selection of investment services.
Annual Fees
Fees payable to BVI FSC for the renewal and maintenance of the application depend on the selection of investment services.
Licensing Timeframe
The BVI FSC licensing procedure takes on average 1 to 2 months, yet this is also subject to the varying workload of the Commission and the applicant’s preparedness on reverting promptly with the required information and/or documentation.
Establishing an Investment Business with SALVUS
The SALVUS Investment Firms Licensing team employs a project management approach for selecting the appropriate investment services that suit each client’s business model and vision. Throughout the entire licensing process, we act on your behalf for collecting and submitting all the necessary information and documentation to the BIV FSC.
If you are interested in establishing an Investment Business in British Virgin Islands, please contact us at info@salvusfunds.com;our Investment Firms Licensing team is ready to answer your questions.