What is the connection and difference between BVI and SPV?

Contact between BVI and SPV: When BVI-A Company, the so-called special purpose company (SPV), acquires the equity of a domestic company in the form of equity or cash, the domestic company becomes a wholly-owned subsidiary of BVI Company, that is, a wholly foreign-owned enterprise. As long as the shareholders and shareholding ratio of BVI and domestic companies are exactly the same, after the acquisition is completed, all the operations of domestic companies are basically completely transferred to BVI.

The difference between BVI and SPV:

1, different ownership: British Virgin Islands may or may not be an SPV company.

2. Different places of registration: SPV company is not limited to BVI, it can be a company registered in Cayman Islands or a company registered in Hong Kong.

3. Different measures: In order to seek overseas listing, domestic private enterprises usually use BVI to finance SPV overseas.

Extended data:

1. Virgin Islands is an internationally renowned tax avoidance center. According to the laws of the island, all companies registered and established in the island are exempt from all taxes except the statutory annual registration fee.

2. British Virgin Islands (B.V.I) is one of the fastest growing offshore investment centers in the world. The company registered here is called BVI company, which is often found in the VIE trading structure listed overseas or in Hong Kong.

3. The business scope of 3.SPV (Special Purpose Vehicle) is strictly limited, so it is an entity with high credit rating and generally will not go bankrupt. SPV has a special position in asset securitization. It is the core of the whole asset securitization process and all participants will work around it.

Baidu encyclopedia -BVI company

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