| Business Opportunities The investment climate is ripe in the BVI, with many areas of development remaining yet untapped. The economy of the British Virgin Islands is expanding at as steady pace with strong participation by the indigenous entrepreneurs. The Charter Yacht Industry already the largest in the Caribbean, has benefitted from new legislation featuring streamlined procedures. Foreign-national investors are, however, encourage take advantage of new business avenues the Government believes to particularly suited to the BVI.
Investment Incentives In its effort to attract foreign investment, the Government of the BVI offers generous incentives under the following Laws:
Pioneer Services and Enterprises Ordinance A ten year tax exemption and duty-free entry of equipment necessary for the operation of business is granted to new operations that are expected to provide benefits to the BVI.
Hotel Aid Ordinance Building materials and equipment for the construction or expansion of hotels are permitted duty-free entry in the British Virgin Islands for a period of 10 years, and in some cases, up to 20 years. Income tax exemption is also granted for 10 or 20 years, as warranted.
Repatriation of Profits Earnings and capital may be repatriated freely in U.S dollars and other convertible currencies.
Double Taxation Relief Double taxation agreements are in effect between the British Virgin Islands and Denmark, Japan, Norway, Sweden and Switzerland.
BVI Recommended Ventures Beverage (ale, beer, soft drinks, etc.) Computer Data Entry and Processing Construction Materials (cement, doors, windows, etc.) Cosmetics and Perfumes Diary Farming (fresh milk) Feedlot Operations (beef) Fish Processing (tuna, etc.) Food Processing Hotels and Marinas (construction and Management) Hydroponics (fresh Vegetables) Motion Picture and Television Production Souvenir Item Manufacture Textiles Manufacturing Yacht Construction (whole, or in part) Yachting Services Informatics Industry
Trade Licenses Steps to Invest
The completed application form should be returned to the Department of Trade & Investment Promotion, together with a financial statement, police record, and two business references of the person(s) or company submitting the application.
Land Availability Lands in the Territory fall into two categories: Crown Land and Private Land. The Government does not issue Crown grants to non-British Virgin Islanders, except in special circumstances. Private Land can be leased or purchased, but before purchase, non-British Virgin Islanders must first obtain an Alien Land Holding License. It is the Government’s Policy, however, that ownership of land be maintained by locals.
Charter Yacht Industry The British Virgin Islands Government implemented new legislation regulating the Charter Yacht Industry in 1992. This legislation, officially titled "The Commercial Recreational Vessels Licensing Act, 1992" brings systematic changes to the current management of the Charter Yacht Industry in the BVI.
Legislative Objectives To ensure that the BVI remains on the cutting edge of the international Charter Yacht Industry. . To broaden the mix of vessels based in the BVI to include more crewed yachts, foster the development of a mega-yacht sub-sector, and attract quality bareboat operators.
Administrative Procedures The Charter Yacht legislation creates new administrative procedures for processing applications. These new procedures, outlined below, will help expedite application processing by reducing the number of Government channels currently involved. Applications will now pass through the following five steps. 1. Applications should be submitted to the Department of Trade at the Office of the Chief Minister. As stated earlier, (see Trade Licenses), they must include the following: (a) A comprehensive business plan (b) The number of people to be employed (c) Details of how the operation will be financed (BVI boats only) (d) Copies of the vessel’s registration documents and insurance certificates (e) USVI boats must indicate whether they are currently operating, and if so, the period since operations commenced 2. Applications will be passed on by the Trade Department to : (a) Customs Department (b) Labour Department 4. Radio Licensing Department 3. USVI-based vessels, already operating in the USVI and seeking approval to operate in BVI waters, will be granted a license once they have met the requirements of the Act. 4. Work Permit are not required for USVI-based vessels unless they are considered BVI-based boats, (those having seven or ore pickups in the BVI any one year). 5. Applications will be processed within two weeks of receipt by the Trade Department. Once the application is approved, it will given to the Customs Department for license issuance to the applicant. License Categories Annual Cruise Description Fee Vessels less than 40 ft. in length $400.00 $25.00 Vessels between 40-50 ft. in length $600.00 $35.00 Vessels exceeding 50 ft. in length $800.00 $45.00 Any vessels engaged in diving, fishing or day trips, but not offering accommodations $200.00 $15.00 Temporary Importation Duty $200.00
Agriculture and Processing There is no significant production of crops in the British Virgin Islands, due to climatic and soil conditions. Most of the arable land is on the largest island, Tortola, where approximately one third of the land is used for agricultural purposes. Primary Production activities in the BVI include fishing, fresh fruits, and limited poultry and beef operations.
Investment Opportunities Since 95% of all food stuff is imported to the BVI, the rapidly expanding Tourism Industry, (hotels, restaurants and charter boats), has generated a pressing need for locally grown fresh produce. Thus, establishment of hydroponic operations for fresh vegetable production offers both immediate demand and profit potential.
Other areas for agriculture development are: . Dairy Farming (fresh milk) . Feedlot Operations (beef) . Fish Processing (tuna, etc.) . Food Processing
Manufacturing and Services While relatively small, this sector of the BVI economy has grown steadily in recent years through the effort of local entrepreneurs. Existing industries include a rum distillery, small boat manufacturing, a sail maker, a tile factory, concrete production, gravel and sand mining, art and crafts.
Investment Opportunities The Government encourages development if the industry is non-polluting, moderate in water usage, and non-labour intensive. Recommended areas of investment include: . Beverage production . Computer Date Entry and Processing . Construction Material Manufacturing . Hotel and Marina Operations . Motion Picture and Television Production . Textile Manufacturing . Yacht Construction and Services . Informatics Industry.
Affiliations The BVI is a member of certain overseas organizations:
Organization of Eastern Caribbean States (OECS) The BVI is a member of the Organization of Eastern Caribbean States (OECS) which comprises eight member states; the other states are Antigua and Barbuda, Dominica, Montserrat, Grenada, St.Kitts, St.Lucia, and St.Vincent and the Grenadines. This organization provides technical assistance to its members and a joint approach to Trade, Investment Promotion and Export Marketing.
Eastern Caribbean Investment Promotion Service (ECIPS) This is the Investment Promotion arm of the OECS. They are located in Washington, D.C., and promote investment for the eight Eastern Caribbean States. The Governments of the OECS, jointly with USAID, provide financial assistance to ECIPS to be able to carry out its programme. ECIPS provides information to potential investor interested in business in either of the eight OECS countries. They provide the states with information on the investors together with other relevant information.
Eastern Caribbean States Export Development Agency (ECSEDA) ECSEDA is the branch established by the OECS to assist exporters and potential exporters in trade development and export promotion . They work with the exporter assisting in the development of their product up to the time of export. ECSEDA’s objective is to encourage, promote and develop export trade through the export of good and services, diversify the sources of export goods and services in order to earn foreign exchange, and to assist each member state in developing its export services to exporters. The agency is funded by the Governments of the OECS assisted by the European community.
Caribbean Common Market (CARICOM) CARICOM was established by the Governments of the member states of the Caribbean Community to: promote greater regional investment particularly on the basis of joint venture; develop and promote national and regional entreprenuership; strengthen regional management and technological capacity; and promote joint development of the region’s resources. The British Virgin Islands is an associate member of CARICOM.
United Nations Development Programme (UNDP) This is a United Nations (UN) organization responsible for coordinating development activities of the UN for developing countries with other specialized UN agencies such as UNCHS, UNIDO, WHO, PAHO, WTO, etc.
Caribbean Development Bank (CDB) It is regional development financing institution that promotes private and public investment in development projects through financing. The BVI is a founding and borrowing member.
European Economic Community (EEC) The British Virgin Islands is affiliated with the EEC through participation in the European Development Fund as an OCT (Other Caribbean Territory) participating in its capital and technical assistance programme, through the European Investment Bank (EIB) which offers loans for projects and LOME which offers capital and technical assistance.
Government of British Virgin Islands, Trade & Investment Promotion Department, Office of the Chief Minister Road Town, Tortola British Virgin Islands, Tel: (284) 494-3701 Ext.2008 and Ext . 2009 : Fax: (284) 494-5676 WebPage designed & maintained by www.bviguide.com |
