Exempt Companies

A foreign, that is non-U.S. or non-U.S. Virgin Islands, investor can obtain U.S. flag protection for non-U.S. investments through the use of a U.S. Virgin Islands registered Exempt Company. These companies offer:

• Exemption from all taxes on income from business activities outside the U.S. Virgin Islands and the United States
• Exemption from all taxes on interest and dividends paid in the U.S. Virgin Islands
• Benefit of treaties of friendship, commerce and navigation entered into by the United States
• A 20-year government contract guaranteeing the tax exempt status of the company

To qualify as an Exempt Company, a company:

• May not engage in the active conduct of a trade or business in the United States or in the U.S. Virgin Islands
• Cannot be owned by anyone deemed to be a United States or a U.S. Virgin Islands person. However, such persons can be shareholders as long as such ownership represents less than 10 percent of the ownership of the company
• Must elect to be an exempt company at the time of its incorporation

The Exempt Company legislation applies to the establishment of general business entities, exempt International Banks and exempt Mutual Funds.

Information on these entities can be provided by Triangle Corporate Services, LLC.

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