Use of Joint Tenancy in BVI Companies

In international wealth and succession planning, the choice of share ownership structure can directly impact the efficiency and continuity of a corporate structure. In the British Virgin Islands (BVI), one of the most commonly used mechanisms for this purpose is Joint Tenancy with Right of Survivorship (JTWRS).

What is Joint Tenancy?

Joint Tenancy is a form of co-ownership in which two or more individuals jointly hold title to the same shares.

Its key feature is the Right of Survivorship: upon the death of one of the joint owners, their interest is automatically transferred to the surviving joint owner(s), without the need for probate proceedings in the BVI.

Key Advantages

• Elimination of succession proceedings: avoids probate in the BVI, reducing costs and time;

• Immediate transfer of shares to the surviving joint owner(s);

• Simplicity and cost efficiency compared to other succession structures;

• Operational continuity of the company, without interruption.

  
  

Points of Attention

Despite its advantages, this structure requires careful consideration:

• All joint owners hold equal rights from inception;

• Disagreements among joint owners may affect corporate governance;

• Each joint owner’s interest may be exposed to personal debts or creditors;

• Upon the death of the last surviving joint owner, standard succession procedures will apply.

  
  

Applicability in the BVI

For Joint Tenancy to be valid and effective, the following requirements must be met:

• The company’s register of members must reflect joint ownership with right of survivorship;

• The share certificate must expressly state the status of joint tenants with right of survivorship;

• The company’s Memorandum and Articles of Association must permit such an arrangement;

• Compatibility with the succession laws of the shareholders’ country of residence must be assessed.

  
  

Joint Tenancy with Right of Survivorship represents a practical and efficient alternative for investors seeking to simplify succession planning for BVI companies. However, its implementation should be assessed on a case-by-case basis, taking into account personal, family, and tax considerations, particularly in relation to the shareholders’ country of residence.

For further information or to schedule a conversation, please contact: contato@aurorabvi.com