BVI Trust Formation

DeltaQuest consultants have a wealth of knowledge and expertise in offshore trust formation, and can guide you with every stage of your BVI VISTA trust formation, from the initial administration of documentation to informing clients on how to benefit from the trust set up. In setting up a BVI VISTA trust, you can achieve favorable asset protection and tax planning conditions as offered by the British Virgin Islands.

To begin the process of applying for a BVI VISTA Trust, please complete our Trust Application Form.

Conditions for BVI VISTA Trust Formation

Legal form: The Virgin Islands Special Trusts Act, 2003 permits the settlor in certain defined circumstances to ensure that the management of an underlying company remains control of the company’s directors and does not pass to the trustees as in usual common law trust arrangements.

The VISTA Act does not apply to BVI trusts generally: it will apply only where there is a provision in the trust instrument, directing the Act to apply. The rule in Saunders v Vautier will not apply (for maximum of 20 years) to VISTA trusts where such rule has been expressly excluded by the trust instrument.

The Vista Act allows trustees of VISTA trusts, which hold a shareholding in a BVI International Business Company, to disengage the trustee from management responsibilities. The use of trusts to cater for the succession of shares in companies has historically been impeded by the ‘prudent man of business’ rule of English trust law, which is designed to help preserve the value of trust investments. The new legislation leaves the responsibility for managing the company to the directors of the company.

Where the new Act applies, designated shares will be held on “trust to retain” and the trustee’s duty to retain the shares as part of the trust fund will have precedence over any duty to preserve or enhance their value. It is also possible to amend existing trusts to allow the provisions of the VISTA Act to apply to them.

The Act is confined to shares in BVI International Business Companies and Companies Act companies. The trustee of a VISTA trust must be a company which holds a licence to undertake trust business under the Banks and Trust Companies Act, 1990.

Settlor: A Settlor is the person or corporation who establishes the trust. The settlor may be any individual of sound mind over 18 years of age.

Beneficiary: The beneficiaries of a trust may be all individuals (including unborn persons, minors and persons of unsound mind); settlor; trustee; corporation or charitable organizations.

Trustee: The trustee of aVISTA trust must be a company, which holds a licence to undertake trust business under the Banks and Trust Companies Act, 1990

Protector: A trust instrument may contain provisions relating to the appointing of a protector of the trust. A protector can have the power to appoint or remove trustees and include or exclude beneficiaries. Typically, a protector will be someone wholly separate from settlor and beneficiaries of the trust, and is nearly always a trusted friend of the settlor or a professional protector.

Taxation: Most BVI trusts are exempt from all taxes provided there are no beneficiaries resident in the BVI and that the trust does not conduct any business in the BVI or own any land in the jurisdiction.

Time needed for formation: Usually it is 7 working days, but we need up to 10 working days for legalization of the documents and delivery by courier.

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