2019 US Virgin Islands Code
Title 13 - Corporations and Associations
Chapter 14 - Exempt Companies
§ 851. Definitions
- For the purposes of this chapter:
(a) “Exempt company” means a corporation organized in the United States Virgin Islands which meets the requirements of section 852 of this chapter and an exempt branch as such term is defined in section 853a of this chapter.
(b) “Internal Revenue Code” means the United States Internal Revenue Code (Title 26, United States Code), as amended.
(c) “Exempt Insurer” means an exempt company which also meets the definition of “exempt international insurer” in Title 22, Chapter 55, Virgin Islands Code, and which conducts no business other than that of an exempt international insurer.
(d) “Exempt international banking facility” means an exempt company which is granted a license pursuant to Title 9, chapter 21, Virgin Islands Code.
(e) “Exempt mutual fund” means an exempt company the principal business of which is trading in stocks or securities for its own account.
(f) “Virgin Islands person” has the same meaning as is contained in the Internal Revenue Code as it applies in the United States Virgin Islands.
(g) “United States person” has the same meaning as is contained in the Internal Revenue Code as it applies in the United States.
(h) “Exempt activities” are any of the activities undertaken by an exempt company outside of the United States Virgin Islands, the earning or receipt of interest on deposits with banks or savings institutions or on amounts held by an insurance company under an agreement to pay interest thereon, the earning of receipt of interest or dividends from another exempt company, and the realization of gain or loss from the sale or exchange or other disposition of the stock of another exempt company. In the case of exempt insurers, exempt mutual funds, and exempt international banking facilities, exempt activities may also include activities within the United States Virgin Islands provided such activities are a required part of the business of the exempt insurer, exempt mutual fund or exempt international banking facility.
Without limiting the foregoing, “exempt activities” also include, in the case of an exempt mutual fund, activities conducted in the United States Virgin Islands of a type described in clauses (1)–(10) below, as appear in U.S. Treasury Regulations Section 1.864–2(c)(2)(iii); these exempt activities shall include:(1) Communicating with its shareholders (including the furnishing of financial reports),
(2) Communicating with the general public,
(3) Soliciting sales of its own stock,
(4) Accepting the subscriptions of new stockholders,
(5) Maintaining its principal corporate records and books of accounts,
(6) Auditing its books of accounts,
(7) Disbursing payments of dividends, legal fees, accounting fees, and officers” and directors” salaries,
(8) Publishing or furnishing the offering and redemption price of the shares of stock issued by it,
(9) Conducting meetings of its shareholders and board of directors, and
(10) Making redemptions of its own stock.
(i) “Corporation” includes a domestic limited liability company and a foreign limited liability company as defined in section 1102 of this Title if such limited liability company otherwise meets all requirements herein to be an exempt company; provided that such limited liability company shall be treated as a corporation for the purposes of the Internal Revenue Code.
