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BVI and Cayman Islands Company Registration

A comparison of the British Virgin Islands business company and the Cayman Islands exempted company, based on what each registry and statute requires.

BVI or Cayman?
Key features of each
Comparison of the two

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The basics

BVI or the Cayman Islands: Which One Should You Choose?

In the BVI, the standard vehicle is the BVI business company. Only a registered agent licensed by the BVI Financial Services Commission can apply to incorporate it, and the Registry rejects applications from anyone else.

In the Cayman Islands, a company whose activities will be carried out mainly outside the islands can register as an exempted company, and it must file a declaration to that effect.

Regulatory requirements for offshore companies, including economic substance and beneficial-ownership rules, change over time and apply case by case. Confirm the current requirements for your structure before you register.

BVI and Cayman at a glance

Who files: A licensed registered agent files every BVI incorporation. In the Cayman Islands, the General Registry advises engaging a licensed professional firm.
Tax: A BVI business company is exempt from the BVI Income Tax Ordinance under section 242. A Cayman exempted company may apply for a tax undertaking from the Financial Secretary for up to 30 years from approval.
Corporate structure: Before a BVI company limited by shares starts operating, it must have at least one shareholder and one director; the same person may hold both roles.
Capital: BVI shares may be issued with or without par value, and par-value shares may use any currency, subject to the memorandum and articles. A Cayman exempted company may express capital in one or more currencies.
Company name: A BVI company may add a foreign-character name with the Registrar’s approval. A Cayman exempted company may register a dual foreign name in a non-Roman script together with an English translation. Submit the proposed Chinese name for review.
Choice: Hongda is happy to hold a free online meeting to talk about your plan and help you make the final decision.

BVI

Key Features of BVI Companies

A BVI company must maintain a registered office and registered agent in the Virgin Islands, subject to the statutory exception for the registered-agent requirement during liquidation under the Insolvency Act.

It cannot begin operating until at least one director has been appointed and at least one share has been issued.

Cayman

Key Features of Cayman Islands Companies

An exempted company is for activities carried out mainly outside the Cayman Islands, and its annual return must declare that its operations have been mainly outside the islands.

May apply to the Financial Secretary for a tax undertaking lasting no more than 30 years from approval.
Not required to hold an annual general meeting in the islands
Capital may be expressed in any currency or in several currencies

Shares may be issued with nominal or no par value
A dual foreign name in a non-Roman script, such as Chinese, can be registered with an English translation

The register of members does not have to be open for public inspection.

How it works

How to decide between the two, step by step.

Quick answer: the choice runs in four steps. Select a step for detail.

Stage 1 of 4

Define the purpose

Start with what the company will hold or do, and where it will operate.

What the company will do.
Whether it is for a simple structure or for funds.

Hongda can help you make the final decision in a free online meeting.

Differences

Differences Between BVI and Cayman Islands Companies

The two jurisdictions differ in the following ways.

Tax position

A BVI business company is exempt from the BVI Income Tax Ordinance by statute. A Cayman exempted company can apply for a written undertaking that any future tax on profits, income, gains or appreciation will not apply to it.

Registration route

Only a licensed registered agent can incorporate a BVI company. For a Cayman exempted company, the General Registry recommends a licensed professional firm, which can also provide the registered office, directors and other officers.

Ongoing requirements

A BVI company must maintain a registered office and registered agent in the BVI, subject to the statutory registered-agent exception during insolvency liquidation. A Cayman exempted company files an annual return declaring that its operations have mainly been outside the islands.

Why Hongda

Why Choose Hongda for Offshore Company Registration?

Registering an offshore company is an important decision. Talk it through before you choose.

Since 2007

Serving foreign companies in China since 2007, with client relationships that go back to 2008.

One team, end to end

Company setup, banking, tax, payroll and work permits coordinated by one team.

In English, on the ground

English-language project management with a China-based team in seven locations.

Clear scope and limits

We confirm the scope before work begins and say which decisions rest with authorities or banks.

Trusted by companies including

Client voices

Clients who have stayed with us for years.

Travis Perkins

David Finch BA ACMA CMIIA CAMA

Director of Group Business Risk & Assurance, Travis Perkins PLC

With Hongda since 2008

Travis Perkins PLC (a leading builders merchant in the UK) has been using Hongda Business Services since 2008 for accounting and professional services. Throughout this time, we have found the team at Hongda to be very helpful and professional in their dealings with us. We look forward to working with the company in the future.

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Your team

The people you will work with.

Meet the three chief consultants at Hongda, including founder Angel Ho and co-founder Bobby Lee.

Angel Ho

Chief Consultant, CEO

Founder of Hongda in 2007. Holds Chinese Tax Agent, IPA (Australia) and IFA (UK) certificates. Provides one-stop services covering market access, company establishment, financial settlement, financial and tax consultation, and human resources management.

Bobby Lee

Chief Consultant

Co-founder of Hongda. Many years of corporate legal consultancy and involvement in managing client enterprises. Familiar with tax, personnel and project management work across Guangdong, Hong Kong and Macau. Excellent English communication skills.

Strong Song

Chief Consultant

24 years in enterprise management, business development, and financial and tax compliance. Has provided financial and tax advisory services for hundreds of companies. In-depth learning and practical experience in IFRS (International Financial Reporting Standards), Generally Accepted Auditing Standards and International Taxation.

Meet the full team

FAQ

BVI and Cayman FAQs

Practical answers about choosing between BVI and the Cayman Islands.

Ask your question

Can share capital be in any currency?

Subject to its memorandum and articles, a BVI company may issue shares with or without par value; par-value shares may use any currency. A Cayman exempted company may express capital in one or more currencies and issue par-value or no-par-value shares.

Can I register a Chinese company name?

A BVI company may add a foreign-character name with the Registrar’s approval. A Cayman exempted company may register a dual foreign name in a non-Roman script together with an English translation. Submit the proposed Chinese name for review.

What is the main difference between the two?

The registration route and tax position differ. A BVI company is incorporated only through a licensed registered agent and is exempt from BVI income tax by statute. A Cayman exempted company declares that it will operate mainly outside the islands and can apply for a tax undertaking.

How do I choose?

Hongda can hold a free online meeting to review your plan before you choose.

Contact our team

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BVI and Cayman Islands Company Registration

Get a free consultation

BVI or the Cayman Islands: Which One Should You Choose?

Key Features of BVI Companies

Key Features of Cayman Islands Companies