Since the introduction of the International Business Companies Act (the "IBC Act") in

1984, about 320,000 International Business Companies ("IBC"s) have been

registered in the BVI. The scope of legitimate purposes and uses for IBCs is almost
unlimited as the IBC Act permits IBCs to conduct any business that is not illegal
under the laws of the BVI.

Property Holding
Asset holding is one of the most popular uses of IBCs. The assets that may be held
by an IBC range from real property to personal assets, including intellectual property
rights. One of the major benefits of holding property through an IBC is on the
ultimate disposal of the property. Shares of the IBC may be transferred rather than
the property itself. Capital gains and inheritance tax may be reduced or avoided
entirely. Moreover, the structure of an IBC preserves the confidentiality of the owners
of the IBC.

Ship Registration
An IBC may be used to own a shipping vessel and the vessel may apply for British
Registration.

Corporate Structures
An IBC may act as a holding company of another entity. The addition of an IBC to a
corporate structure allows for a measure of tax planning within the corporate
organisation. Profits may accumulate in the holding company within a tax neutral
environment. The holding company may be used as a finance vehicle to issue loans
to subsidiaries. As well, the IBC adds a layer of confidentiality and at the same time
provides flexibility upon the disposal of the underlying entity.

Trading Companies
Trading companies may be used to defer taxation and regulation and to minimise
liability. Trading operations may be established so that the offshore entity maximises
its profit by buying and selling at a markup. Ultimately onshore taxation may be
reduced subject to the application of transfer pricing laws.

E-Commerce
IBCs are a vehicle of choice for offshore electronic businesses. The use of an IBC
may limit liability and taxes and avoids undue regulation. Operating an E-biz through
an IBC allows a company to become more flexible, profitable and efficient.

Joint Ventures
The flexible nature of the IBC allows for a good measure of planning specifically with
respect to the management structure and the ownership structure.

Captive Insurance
Captive Insurance companies are insurance subsidiaries of non-insurance parent
companies or associations formed to write some or all of the risks of the parent.
They are a valuable tool in risk management and financing since tailored solutions
may be developed to accommodate premium cash flow and other economic
advantages as well as solve problems of coverage availability.
Trusts
Trust structures may be used for several purposes including estate and tax planning
as well as asset protection. An IBC may hold some assets and the trust may in turn
own the shares of the IBC. The control and management of the assets remain with
the IBC. The legal owner of the assets is the trust. In specific circumstances,
including family and corporate group trusts, an IBC may act as trustee of a private
trust.

Mutual Funds
The tax neutral status of an IBC makes it an attractive vehicle to minimise the tax
exposure of a mutual fund and enhance its returns. The BVI Mutual Funds legislation
enables sponsors to establish funds on an attractive cost scale within a clearly
defined regulatory system.