BVI, Cayman or Seychelles company: how they compare

The British Virgin Islands, the Cayman Islands and the Seychelles are three of the best-established offshore centres. They share a great deal: English-language legal systems, licensed registered agents, little or no tax at company level and full participation in international tax transparency. Yet each has a distinct character, and the right choice depends on what the company is for.

AT Express is headquartered in Cyprus, with offices in the United Kingdom, Hong Kong, China, Vietnam and Singapore, and we coordinate formations in all three with licensed local providers. Here is how they compare.

British Virgin Islands: the versatile holding company

The BVI business company is one of the most widely used corporate vehicles in the world. Its company law is flexible, familiar to international lawyers and well suited to holding companies, joint ventures and investment structures. A company may be formed with a single director and a single shareholder, and must maintain a registered agent and registered office in the territory.

BVI companies do not currently pay income tax, but they must keep accounting records and, under rules introduced in recent years, file an annual financial return with their registered agent within nine months of the financial year end. Companies carrying on relevant activities must also meet economic substance requirements and report through the BVI International Tax Authority.

One point to note for 2026: following the Council of the European Union’s revision of 9 October 2026, the BVI appear in Annex II of the EU list, the state-of-play document for cooperative jurisdictions that still have commitments to meet, rather than in Annex I. More detail is on our BVI company formation page.

Cayman Islands: the funds and capital-markets specialist

The Cayman exempted company is designed for business conducted mainly outside the islands. It is the vehicle of choice for many investment funds and is widely used in capital-markets transactions and holding structures. The Cayman Islands levy no income, capital gains or other direct taxes on companies, and exempted companies file an annual return with the General Registry each January.

The Cayman Islands Economic Substance Act has applied since 1 January 2019, developed in collaboration with the OECD’s Forum on Harmful Tax Practices and the European Commission. Annual costs are generally higher than in the other two centres, reflecting Cayman’s positioning at the institutional end of the market. See our Cayman Islands company formation page.

Seychelles: compact and cost-conscious

The Seychelles international business company appeals to owners who need a straightforward, economical vehicle for trading or holding. A single director is sufficient. The Seychelles operates a territorial tax system, and the Seychelles Revenue Commission’s published business tax rates are 15% on the first SCR 1 million of taxable income and 25% above that, which can apply to companies that do not meet the substance test or that earn Seychelles-sourced income. Companies file an annual tax return by 31 March.

The Seychelles’ lower profile can make banking more demanding than for a BVI or Cayman company, so the banking plan deserves early thought. Our Seychelles company formation page explains the requirements.

At a glance

• Typical uses: BVI for holding companies and joint ventures; Cayman for funds and capital markets; Seychelles for compact trading and holding companies.
• Tax at company level: none in the BVI and Cayman at present; a territorial system in the Seychelles.
• Annual obligations: an annual financial return in the BVI, an annual return each January in Cayman, an annual tax return by 31 March in the Seychelles, plus economic substance reporting where relevant.
• EU list: the BVI appear in Annex II; neither Cayman nor the Seychelles is listed in either annex following the October 2026 revision.

For a broader view of when an offshore company is the right answer, and when it is not, see our guide to offshore company formation.

What all three have in common

Each centre exchanges financial account information under the OECD Common Reporting Standard and FATCA applies to accounts held by US persons, so accounts held by these companies, and the individuals who control them, are reported to tax authorities. Each requires full identification of directors, shareholders and beneficial owners before a company is formed. And in each case, an owner resident in a high-tax country may be taxed at home on the company’s profits under controlled foreign company rules. Our article on CRS and FATCA reporting explains what is reported, and our page on international tax planning describes how we coordinate advice.

Banking is the other common thread. Banks apply enhanced due diligence to offshore companies, wherever they are registered. Our guide to opening a bank account for an offshore company sets out what to expect.

Choosing well

The choice is rarely about cost alone. A fund manager will usually look to Cayman; a family holding shares in businesses across several countries may prefer the BVI; an entrepreneur who needs a simple vehicle may be well served by the Seychelles. Belize, whose companies are now formed under the Belize Companies Act, 2022, is another option worth considering for compact holding and trading structures. In many cases, an onshore company in a centre such as Hong Kong or Cyprus is the better answer. Our corporate services page compares all ten jurisdictions we cover.

If you would like to talk through how this applies to your own plans, our team would be glad to help. You can call +357 979 42 388, message us on WhatsApp or write to us through our contact page.

Sources

• BVI Financial Services Commission: Corporate structures
• BVI International Tax Authority: International Tax Authority
• Cayman Islands General Registry: Exempted company
• Cayman Islands General Registry: General taxation rate for incorporated companies
• Cayman Islands Department for International Tax Cooperation: Economic substance
• Seychelles Revenue Commission: The Seychelles tax system
• European Commission: EU list of third-country jurisdictions for tax purposes
• OECD: Global Forum on Transparency and Exchange of Information for Tax Purposes

This article is for general information only and does not constitute legal, tax or financial advice. Company formations and bank accounts are subject to know-your-customer (KYC) and anti-money-laundering (AML) checks, and no outcome or timescale can be promised. Companies may be subject to economic substance rules, and accounts and their owners may be reported to tax authorities under the OECD Common Reporting Standard (CRS) and FATCA. Check the current EU list of non-cooperative jurisdictions for tax purposes and take independent advice in each country concerned. Figures are stated as at October 2026 and may change. AT Express is a private consultancy and is not affiliated with any government, registry or bank.

Featured image: “Anse Source d’Argent – La Digue – Seychelles – 03” by NorbertNagel, licensed under CC BY-SA 4.0.