With the growth in wealth in Asia Pacific, individuals and families are increasingly seeking solutions to grow and protect their wealth. The BVI was ranked first for asset protection and estate planning in the Offshore 2020 report. The BVI’s modern and progressive trust legislation provides flexible asset protection structures to help families manage their increasingly complex assets around the world.
BVI Business Companies (BCs), simply referred to as “BVIs” in China, are often used as asset protection vehicles commonly in combination with a BVI trust that acts as a holding company. The combination of the trust and company make it possible for trust assets to be held in a jurisdiction which does not recognize the trust concept.
Additionally, the combination safeguards assets against political risks: (example - a modern trust instrument can provide for the proper law of settlement, or provide for its administration to be moved to another jurisdiction in the event of political or strategic emergency in the country of the trustee's residence (Fraser Allister, Managing Associate, Ogier).
By having shares of family businesses owned by a BVI trust, the control of the business can be centralized and retained indefinitely, and the board of directors can run the company without fear of shareholder interference.
Additionally, upon the passing of the family member, BVI trusts ensure efficient distribution of assets to beneficiaries without the lengthy, complicated and costly procedures normally required for probate.
For international businesses, many clients will have operations in numerous jurisdictions and may not prefer to have the ownership centralised in one location. In this case, BVI companies are often used as a holding company for the other business interests with a BVI trust holding shares.
By using BVI structures, clients also have access to the best professionals in all areas of financial services, including asset protection for private clients. The BVI financial services sector is well-established and trusted by foreign investors worldwide, including global financial institutions, and especially throughout the Asia Pacific region.