Based on the strength of the BVI’s legal framework, the report describes the BVI as ‘a leading centre specialising in the incorporation of vehicles for cross-border business and accompanying company law and legal services’. It also found that the legal sector is the second biggest employer in the BVI’s international business and finance centre with 535 people and the largest gross value added contributor at $129 million.

UK, EU, China and Hong biggest beneficiaries

Creating Value: BVI’s Global Contribution, undertaken by Capital Economics, an independent economics consultancy, analysed the global economic contribution of the BVI. The report – which the authors describe as the first of its kind – also found that more than $15 billion of tax revenues are generated annually for governments around the world, via investment mediated by the BVI and the resulting economic activity. The UK with $3.9 billion, the EU excluding UK with $4.2 billion and China and Hong Kong with $2.1 billion are the largest beneficiaries of this tax generation, according to the report.

Lawyers will continue to be central

Peter Tarn, Board Member of BVI Finance and Partner at Harneys said: ‘Lawyers will undoubtedly continue to be central to the development of the international business and finance centre in the BVI but other professions and technologies have important roles to play as well.’

417,000 active BVI Business Companies

Commenting on the key findings of the report, Mark Pragnell, Head of Commissioned Projects at Capital Economics and the report’s author said: ‘Over 140 major businesses listed on the London, New York or Hong Kong main stock exchanges use BVI vehicles to support their international investment activities. Similarly, major international development banks, such as the World Bank’s International Finance Corporation, use BVI Business Companies to help fund vital projects. Our report shows that the BVI is a global powerhouse for cross-border investment equating to a conservatively estimated $1.5 trillion across its 417,000 active BVI Business Companies.’