BVI still at forefront of cross-border business

09/08/2022

The special report, “2022 Offshore solutions in the British Virgin Islands (BVI)”, delves into the products and services offered by Asia’s offshore jurisdiction of choice – the BVI. In 2022, there are many reasons to be optimistic about a resurgence in global investment, growth and productivity. Both established and emerging economies, especially in Asia, are displaying impressive resilience and, with the help of global finance and investment, making strides in financial technology and digital infrastructure.
In making this evaluation, one must be conscious of the context of the lingering pandemic and the ongoing Russia and Ukraine crisis, and the potential for both to alter the global economic outlook. Parts of the Asian continent are still recovering from the effects of the pandemic, and this will likely continue for the immediate future.

Whatever lies ahead, the BVI will maintain its strategic partnership with the Asian economies. In the past three decades, the BVI has steadily increased its role in the global financial system, responsible for mediating the equivalent of 6% of all sectors’ total cross-border liabilities, contributing more than USD10 billion in tax to national revenues, and supporting millions of jobs worldwide, according to Capital Economics.

From this investment, the BVI is now able to support business growth, facilitate trade across borders, and enable growing economies and markets to access the finance and investment they need to thrive.

According to Morgan Stanley, Asia will post the largest increase in GDP in the next two years, with an expected expansion in nominal terms from USD33 trillion in 2021 to USD39 trillion in 2023. This potential growth provides a significant development opportunity for the BVI, which has built an enviable reputation in the region. The BVI company has become the premium choice and has been successful for Asian corporates, high net-worth individuals and institutional investors, driving the Asian Tiger economic model and supporting decades of development, jobs and prosperity.

The BVI’s popularity in Asia is built on a winning track record of outstanding corporate legislation, BVI business company brand familiarity, flexibility, cost and tax efficiency, legal certainty, a general ease of doing business, and an unrelenting capacity to innovate. The BVI’s services and products are available from a wide pool of experts who are easily accessible and provide professional services directly in Asia.

With about 75% of companies listed on Hong Kong’s Hang Seng Index having BVI companies incorporated into their structures (according to Capital Economics), the BVI’s support for Asian businesses is evident and always evolving. Recognition by the BVI Financial Services Commission of the Fusang Exchange, an end-to-end digital exchange for security tokens and cryptocurrency, is another example of this. The BVI also continues to strengthen opportunities in financial technology solutions, has launched a fintech regulatory sandbox, and introduced a new fintech training programme in partnership with the National University of Singapore’s School of Computing.

In the next decade, the global economy will continue to evolve as the world rises to meet the challenges that lie ahead. Throughout this, the BVI will remain steadfast in its commitment to facilitating global growth, providing innovative corporate solutions, and remaining at the forefront of developing trends across the world, especially in Asia.

From 30 years of experience working in the region, BVI Finance knows a vibrant Asian economy requires international collaboration. Its role in facilitating cross-border business and providing pathways for investment to flow into established, developing and emerging markets has never been so crucial.