Expand Business in US Virgin Islands
Global Upside helps businesses expand into US Virgin Islands by providing talent acquisition, human resources, accounting, payroll, tax, incorporation, and professional employer organization (PEO)/employer of record (EOR) services. Our comprehensive offerings create an end-to-end solution that helps you establish your business and optimize your operations, all while maintaining compliance with laws and regulations in the US Virgin Islands.
The hiring and incorporation processes in US Virgin Islands are often complex, time-consuming, and involve numerous legal and compliance challenges. Global Upside simplifies these processes and lifts the compliance burden from your business. Our teams have the experience and expertise required to help you establish a legal entity in US Virgin Islands. We also offer PEO/EOR solutions to companies interested in hiring employees quickly, without setting up a legal entity in the country.
The US Virgin Islands (USVI) is made up of 3 larger islands – St. Croix, St. Thomas, and St. John, and many smaller ones. The chief economic activities of the US Virgin Islands are tourism, trade, rum production, and other services that account for a major part of its GDP and employment. The USVI receives approximately 2.5 and 3 million tourists a year who mostly come from visiting cruise ships. Most employment opportunities are in the sectors of real estate, hospitality industries, or food service.
- US Virgin Islands ranks 150th in the world for oil consumption.
- US Virgin Islands ranks as one of the biggest exporters of wristwatches and precious metals.
- US Virgin Islands is one of the best places in the world for business.
Domestic Corporations is a form of legal establishment that is located here and is permitted to carry out business and commercial activities. They are also eligible for tax benefits as per the criterion set by the US Virgin Islands Economic Development Authority.
Foreign Sales Corporations (FSCs) is a kind of legal establishment that allows the US exporters to decrease their taxes on the export income.
Exempt Companies may not participate in the direct management of business or transactions in the U.S. Virgin Islands or the United States, and are absolved from USVI pay, net receipts, and retaining charges, including permit prerequisites, upon filing an excluded organization election. Residents of the US or the US Virgin Islands may not possess 10% or more of a USVI absolved firm.
The USVI entails establishments to have at least three directors and officers, a president, secretary, and a treasurer. The minimum capital requirement is $1,000 and the stocks also need to be registered.
It takes approximately six to eight weeks to establish a legal entity set up in the US Virgin Islands, depending on the kind of establishment required.
Under the employment law Act No. 8252, few employers are required to post in a prominent spot inside each site of activity (or include in a manual circulated amongst all employees, if posting within the business is improbable) certain authorized banners. Covered entities include those that are authorized to conduct business in the Virgin Islands that hire at least five people.
The applicable prints describe employee rights under the:
- Fair Labor Standards Act
- US Virgin Islands law
- Employee Polygraph Protection Act
- Family and Medical Leave Act
- Equal Employment Opportunity Act
- Uniformed Services Employment and Reemployment Rights Act
- Job safety and health requirements are under the Occupational Safety and Health Act of 1970.
Financial reports provided by section 625 must be inspected by the autonomous public auditor. The audit of the guarantor’s financial reports must be administered in agreement with commonly acknowledged auditing principles. As per AU Section 319 of the Professional Standards of the AICPA, Consideration of Internal Control in a Financial Statement Audit, the autonomous qualified public auditor will acquire a comprehension of inner control adequate to design the audit. To the degree required by AU 319, for those guarantors needed to document a Management’s Report of Internal Control over Financial Reporting according to section 2637, the autonomous qualified public auditor will consider as that term is characterized in Statement on Auditing Standards (SAS) No. 102, Defining Professional Requirements in Statements on Auditing Standards or its substitution the most currently accessible report in arranging and operating the audit of the legal financial reports.
Currently, the US Virgin Islands does not have a general data privacy act. Nonetheless, the State has its information breach prerequisites under the §2208-2209 of Chapter 110 of Title 14 of the Virgin Islands Code Annotated (the Data Breach Requirements). Compliant with the Data Breach Requirements, citizens must be informed in the circumstance their unencrypted personal data was or is judiciously accepted to have been, collected by an unlicensed individual. The Data Breach Requirements are sanctioned by methods of a private right of activity by clients.
Anti-Bribery & Anti-Corruption Law
According to the US Foreign Corrupt Practices Act (FCPA), it is mandatory to implement honesty and anti-corruption measures.
Punishments for breaching the FCPA can be serious, and they can apply to both the people and the organization included. Companies are accountable for criminal fines of up to US$2,000,000 and civil penalties up to US$10,000 per infringement. An undeniably huge number of organizations have settled FCPA charges for amounts in millions of dollars. The expenses of security and conformity can likewise reach significant levels.
Individuals are accountable to criminal fines up to US$100,000, detainment for at least five years, or in some cases, both. Individuals are likewise liable to civil penalties up to US$10,000. These sanctions are inclusive of potential reputational harm and inquiry, defense costs, which may emerge even without a formal government indictment.
Infringement of the FCPA is not included by Directors and Officers Protection and individuals cannot be compensated by their company or employer for such infringement. The company takes its commitment to abide by the FCPA and related laws. Subsequently, Company Representatives who are unable to follow this Policy and its goal, regardless of whether explicitly expressed in this Policy or otherwise, might be responsible for disciplinary actions, that includes suspension where authorized.