The enduring relevance of the BVI: 40 years of partnership, vision and progress

Stepping out of Central MTR train station back in the ‘90s, I remember the vibrant energy of Hong Kong and the sense of possibility in the air. Back then, “Buy a BVI!” flyers dotted the bustling streets, hinting at a new world of opportunity. For me, the BVI wasn’t just a distant island, it was my home. A territory fast becoming a vital global gateway and I had a front row seat to watch it all unfold.

A vision that changed an industry

The BVI started developing its offshore financial sector in the 1960s, but it wasn’t until the mid-eighties that things really started to take off. The 1984 International Business Companies Act opened the door for companies to be incorporated with minimal local taxation and regulation. It was the first step in BVI’s transformation from a largely overlooked agricultural outpost to a major international financial hub.

In 1988, Frank Mullens, an Australian accountant in Hong Kong, played an instrumental role in popularising the BVI as an offshore jurisdiction. He joined Ted Powell at Offshore Incorporations Limited (OIL) that year and understood the cultural significance of auspicious dates for Chinese businesses. On August 8, 1988 – an extremely lucky date in Chinese culture - he orchestrated a mass incorporation of BVI companies, reportedly convincing the local registry to open on a public holiday in the BVI to accept and process the requests. 

This proved to be a pivotal moment in the territory’s history. Local officials worked overtime incorporating hundreds of applications, putting the jurisdiction on the map for the Hong Kong and wider Chinese business community. This single event established BVI companies as trusted vehicles for cross-border deals and set a model for offshore structuring across Asia and beyond. Mullens’ insight and timing laid a foundation that would shape the industry for decades.

A global hub for Chinese investors

The ripple effect was immediate. The BVI’s simple structures, legal certainty, confidentiality and reasonable cost made it the preferred choice for Chinese and Hong Kong businesses expanding abroad. 
For Chinese investors, the BVI structure became their bridge to global markets. The “BVI company” was seen as a mark of credibility and a practical tool for listings, M&A and outbound capital.

By 2000, 41% of all offshore companies worldwide were formed in the BVI. No longer a footnote, the territory had become the dominant player; Frank Mullens’ vision realised on a global scale.

Meeting the challenge of increased regulation

Over the past four decades, the BVI has cemented its reputation as a premier jurisdiction for incorporations. Today, more than 360,000 active companies are registered there, helping to facilitate nearly 
$1.4 trillion in cross-border investment and trade. These capital flows are vital to emerging and developed economies and reflect the BVI’s status as an important hub for global trade and finance.

Its favorable environment and legal stability attract everyone from small startups to large multinationals. Grounded in English common law with a dedicated commercial court, the BVI gives investors confidence through predictable and enforceable legal standards, crucial for cross-border business.

In recent years the regulatory landscape has changed dramatically and so have the needs of our clients. Offshore jurisdictions have transformed under the microscope of international scrutiny. The resilience of the BVI has been tested by Financial Action Task Force (FATF) reviews, OECD BEPS standards and raised expectations on corporate transparency.

Raising the bar on transparency

The BVI has taken several concrete steps to address international regulatory concerns and bolster its reputation as a trusted financial centre:

• Beneficial Ownership: The BVI has long collected beneficial ownership information for entities incorporated in the jurisdiction. Initially this was done through KYC processes conducted by registered agents and other service providers. In 2017 the Beneficial Ownership Secure Search System “BOSS”) was introduced to centralise this process through a secure electronic platform, designed to collect and store the beneficial ownership information and grant access on a confidential basis to regulators and competent international authorities. In January 2025 the boss system was replaced by a new regime that captures beneficial ownership data through the BVI Registry’s VIRRGIN online platform which is also used for all company filings and searches, enabling real-time regulatory access.
• Economic Substance Rules: Introduced in 2019 and updated in 2024, these rules require companies to demonstrate real business activity and genuine tax residency.
• Expanded Electronic Registry: VIRRGIN now serves as the central hub for all filings, streamlining compliance, creating direct audit trails and ensuring fast, secure access to company information.

Each reform has strengthened global confidence in the BVI, making company ownership more transparent, exposing misconduct and aligning the territory with the highest standards of corporate integrity. While regulation has increased complexity, it has also transformed the business environment, bolstering investor trust and driving stronger, more responsible practices.

Deep relationships that deliver

Increased regulation doesn’t have to be a barrier to growth. At Vistra we see it as an opportunity to build resilience into the DNA of your organisation.  We help clients turn compliance into a competitive advantage by providing clear, practical guidance in a fast-changing environment.

Our real strengths are our long-standing relationships with regulators, governments and industry peers. We engage in ongoing dialogue, sharing challenges and working together to implement solutions. This rare level of partnership enables us to anticipate and adapt to regulatory changes with an efficiency that few can match.

Our roots in the BVI run deep. In 2011, Vistra acquired Offshore Incorporations Limited (OIL), and continued to build on the legacy of Frank Mullens and Ted Powell’s pioneering vision. Today, we manage over 120,000 entities across the BVI, Cayman, Samoa, and Seychelles, making us the global leader in registered office and agent services.

Reflecting on 40 years in business, we recognise that OIL’s legacy is not just one of scale, but the high standards of service and innovation that Vistra has enshrined as industry best practice to this day.

Looking to the future

The next forty years will bring new expectations for transparency and compliance. The most successful financial centres will be those that deliver robust compliance along with the efficiency and flexibility international businesses demand.

The BVI has consistently adapted, responding to every regulatory shift and change in global capital flows with resilience and innovation. Today, that adaptability matters more than ever. Jurisdictions that combine strong governance with practical business solutions will thrive and the BVI is well-positioned to set the pace.

The BVI’s value isn’t just in tax advantages, but in its reputation as a well-governed, neutral hub where companies of any size can confidently structure their international operations. As the regulatory environment grows more complex, the BVI’s record of forward-thinking regulation, operational excellence, and strong partnerships will only grow in relevance.

Looking ahead, we expect the BVI not just to maintain but to strengthen its position as a leading international financial centre - adapting quickly, working closely with global businesses, and setting the benchmark for what a modern and resilient jurisdiction can achieve.