The British Virgin Islands (BVI) are located in the Caribbean, approximately 95 kilometres  East of Puerto Rico. The total land area of BVI is approximately 155 square kilometres . The principal island of BVI is Tortola, where the capital of Road Town is located. The total population of BVI is approximately 22,000.

There are no capital gains taxes, inheritance taxes or death duties in the BVI. Government revenues are derived from local payroll tax, import duties, stamp duties, license fees and company registration fees. By specific provisions in the corporate legislations, BVI company assets are protected from confiscation or expropriation orders or similar actions by foreign governments.

The BVI is a very successful offshore financial centre, with special emphasis on offshore business companies, trusts, offshore fund management and banking. Offshore services sector contributes greatly to BVI´s national economy, being one of the primary reasons behind the increasing prosperity enjoyed by the country. Therefore, there is a distinct support both from the Government and the general public towards further development of the offshore financial sector in BVI.

The most common structure in the BVI is the International Business Company (IBC). The key characteristics are outlined below.