British Virgin Islands or Delaware: where should you start a business?
The British Virgin Islands ranks higher in the index, 05 against 18. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Companies are generally exempt from income tax, and no withholding tax or VAT is charged. Individuals pay no income tax, although a payroll tax applies.
No Delaware income tax is due where no business is done in the state, but annual franchise tax applies. There is no state sales tax.
Set-up
Incorporation costs US$550 where up to 50,000 shares are authorised, and the annual fee is the same. No standard processing time is published.
A corporation's filing fee starts at US$109. No standard processing time is published, but paid services offer 24-hour, same-day and faster filing.
On the ground
Every company must keep a licensed registered agent in the BVI at all times, and no director needs to live there. Substance depends on the activity.
Every company must keep a registered agent with a Delaware address, and no director needs to live in the state. There is no minimum capital.
Ownership
Since 1 April 2026 the register is open only to persons with a legitimate interest, for anti-money laundering purposes, at a fee of US$75.
Under FinCEN's final rule, effective 14 August 2026, companies formed in the United States are exempt. Only foreign companies registered there still report.
Residence
The government lists a self-employed work permit for non-Belongers who work in the territory on their own account.
Owning a company confers no residence. The E-2 visa is limited to treaty nationals, and the EB-5 requires an investment from US$800,000.
Living and working
Currency
US dollar.
US dollar.
Time zone
UTC-4.
UTC-5, and UTC-4 in summer.
Personal tax
There is no income, capital gains, inheritance or wealth tax; employees can pay 8% payroll tax, and a property tax exists.
Federal top rate 37% above $640,600 for a single filer in 2026; Delaware charges 6.60% from $60,000 and repealed estate tax in 2018.
Flights
The Beef Island airport lists nonstop flights to San Juan, but no direct London, New York, Dubai or Singapore service.
Wilmington (ILG) has Avelo flights to Florida and San Juan, and an American Airlines coach to Philadelphia, which serves Heathrow.
Language
English is the official language of the United States under an Executive Order of 1 March 2025.
British Virgin Islands vs Delaware: common questions
The British Virgin Islands: Companies are generally exempt from income tax, and no withholding tax or VAT is charged. Individuals pay no income tax, although a payroll tax applies. Delaware: No Delaware income tax is due where no business is done in the state, but annual franchise tax applies. There is no state sales tax.
The British Virgin Islands: Incorporation costs US$550 where up to 50,000 shares are authorised, and the annual fee is the same. No standard processing time is published. Delaware: A corporation's filing fee starts at US$109. No standard processing time is published, but paid services offer 24-hour, same-day and faster filing.
The British Virgin Islands: Every company must keep a licensed registered agent in the BVI at all times, and no director needs to live there. Substance depends on the activity. Delaware: Every company must keep a registered agent with a Delaware address, and no director needs to live in the state. There is no minimum capital.
The British Virgin Islands: Since 1 April 2026 the register is open only to persons with a legitimate interest, for anti-money laundering purposes, at a fee of US$75. Delaware: Under FinCEN's final rule, effective 14 August 2026, companies formed in the United States are exempt. Only foreign companies registered there still report.
The British Virgin Islands: The government lists a self-employed work permit for non-Belongers who work in the territory on their own account. Delaware: Owning a company confers no residence. The E-2 visa is limited to treaty nationals, and the EB-5 requires an investment from US$800,000.
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