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Offshore companies are often established to take advantages in the international trade, taking into account that the flow of money in or out of most countries is still restricted or somehow regulated, and of course liable to taxes. The British Virgin Islands are politically stable offshore jurisdiction with excellent commercial and professional infrastructure and developed communication facilities. Now the BVI is the most popular jurisdiction for incorporations, with over 300,000 business companies registered and used for all kinds of international business activities. In BVI, International furniture Companies are exempt from all local taxes and stamp duty. Excellent corporate features allow for ease of operation, maintenance and control of BVI offshore companies. BVI company incorporation is cost effective, offering great offshore asset protection benefits, maximum security and no taxation requirements. One of the disadvantages of setting up an furniture company is that generally they can not carry on any business or have an office with staff employed within the jurisdiction of incorporation. There are certain restrictions on the types of business, mostly in the banking and insurance industries, that have the right to operate as an offshore company. BVI company law provides minimum obligation to file any returns or reports. BVI IBC's are not obliged to prepare or file financial accounts, annual returns or records. However, the company must keep whatever financial records the company Directors feel enough to show and clarify the transactions carried out, and to determine the financial position of the offshore company. Incorporating in an offshore financial centre and moving money offshore is an effective tool to reduce the risk of litigation, tax law changes unfavorable to the business, and criminal activities in the home country. Also, most investors going offshore come to the decision that their funds should work for them in some kind of investment. The most important drawback of incorporating offshore is negative perception of the offshore concept, because of the media reporting bad cases only. Furniture company owner may achieve anonymity by carrying out transactions in the name of a company, while his name may be kept out of documents and public records. However, knowing that, current anti-money laundering regulations often require banks and other professionals to look through offshore structures.
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