The British Virgin Islands were among the first in the world to implement offshore company legislation - the International Business Companies Act of 1984. The BVI IBC Act was considered by many offshore professionals as the best of its kind. The New BVI Business Company Act came into force in 2004, addressing some of the challenges of the new millenia while retaining the BVI offshore companies' confidentiality and flexibility.

To date, the BVI evidently is the 'number one' jurisdiction for offshore incorporation of tax free companies: more than 900,000 BVI Corporations, BVI IBCs and newer type Business Companies (BVI BC), have been incorporated by the BVI Registrar.

The BVI Companies and all amounts paid by them to non-residents are exempt from all BVI taxes.