BVI company formation for Indian founders and families
A BVI Business Company with economic substance, beneficial ownership and annual return compliance — used for international holding and joint ventures.
The BVI Business Company is a widely recognised vehicle for international holding companies, joint ventures and investment structures. It is not a fit for every Indian resident, though: India's overseas investment rules limit how resident individuals can use holding structures, so we check eligibility first.
Key facts at a glance
| Company type | BVI Business Company under the BVI Business Companies Act, 2004 |
| Tax | No tax on company profits or capital gains; payroll tax applies only where there are employees |
| Economic substance | Companies carrying on a relevant activity — including holding business, headquarters, distribution and service centre, IP, finance and leasing — must meet substance tests and report annually |
| Annual return | Since 2023, an annual financial return is provided to the registered agent within 9 months of the financial year end (not public) |
| Registers | The register of directors is filed with the Registry and, since 2 January 2025, so are the register of members and beneficial ownership details (10% or more of shares or voting rights, or control); beneficial ownership information is not public |
| Fees | An annual government fee based on authorised share capital |
| EU tax list | On Annex II (cooperating jurisdictions with pending commitments) — not on the EU list of non-cooperative jurisdictions (Annex I) |
| AML lists | Under FATF increased monitoring since June 2025; on the EU list of high-risk third countries for anti-money laundering since 29 January 2026, so banks may apply enhanced due diligence |
| India link | No DTAA; a tax information exchange agreement has been in force since 22 August 2011 |
Best suited for
- International holding companies for NRIs and Indian groups
- Joint ventures with foreign partners
- Investment and IP-holding structures (subject to substance)
What we handle
- Eligibility review under Indian ODI rules before incorporation
- Incorporation through a licensed registered agent
- Register filings, economic substance classification and annual return
- Accounting records and bank account support
- ODI reporting and Schedule FA where applicable
The Indian side
A resident individual may make ODI only in an operating foreign entity that is not in financial services and has no subsidiaries the individual controls, so a pure holding company is generally not available to resident individuals. NRIs investing from foreign funds, and Indian companies (which follow separate ODI conditions), have more room. Where the foreign company invests back into India, the structure must not exceed two layers of subsidiaries. See ODI & FEMA compliance.
Sources: BVI Business Companies Act, 2004 (Revised Edition 2020) and the BVI Business Companies (Amendment) Acts 2022 and 2024; Economic Substance (Companies and Limited Partnerships) Act, 2018; BVI Business Companies and Limited Partnerships (Beneficial Ownership) Regulations, 2024 (S.I. No. 59 of 2024), as amended; Council of the EU, list of non-cooperative jurisdictions (revision of 17 February 2026); FATF, Jurisdictions under increased monitoring (19 June 2026); Commission Delegated Regulation (EU) 2026/83; Foreign Exchange Management (Overseas Investment) Rules, 2022.
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