Virgin Islands Law Blog

Virgin Islands Law Blog

U.S. Virgin Islands law & politics

Category Archives: Corporate & Financial Services

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U.S. Virgin Islands Uses Tax Breaks to Lure More Small Businesses

Posted in Corporate & Financial Services
The U.S. Virgin Islands has recently begun to offer significant corporate tax breaks to small businesses in an attempt to encourage job creation and diversity within the territory’s economy, currently valued at $4.2 billion. In early March, Governor John P. deJongh toured New York with regional economic development officials to meet with investors and interested … Continue Reading

Effective Methods for Protecting Your Company’s Intellectual Property

Posted in Corporate & Financial Services
Recently, one of our firm’s clients inquired as to our protecting their intellectual property, and BoltNagi submitted to an in-depth technology audit. Large companies like Google, Microsoft and Apple use considerable resources to protect their intellectual property. An organization of any size, however, can suffer due to intellectual property theft, and small businesses in particular … Continue Reading

U.S. Energy Department Maintains Agressive Energy Efficiency Obtainable in U.S. Virgin Islands

Posted in Corporate & Financial Services
The high cost of energy, along with isolated grids and an abundance of renewable energy resources have motivated island communities around the world to investigate alternatives to fossil fuels.  Many have set ambitious objectives to reduce oil consumption—the primary fossil fuel consumed on most islands.  According to the U.S. Department of Energy, the U.S. Virgin … Continue Reading

CFPB to Crack Down on Disrcriminatory Car Loans

Posted in Corporate & Financial Services
Auto loans are the third largest source of outstanding household debt after mortgages and student loans.  Those loans should be administered fairly without discriminatory practices. The Consumer Financial Protection Bureau (CFPB) recently gave notice to lenders that offer auto loans through dealerships that they are responsible for any unlawful or discriminatory pricing.  The CFPB reported … Continue Reading

FDIC and SBA Offer Support for New and Aspiring Entrepreneurs

Posted in Corporate & Financial Services
The Federal Deposit Insurance Corporation (FDIC) and U.S. Small Business Administration (SBA) recently announced new resources to support small businesses across the nation and the U.S. Virgin Islands.  FDIC Director for Depositor and Consumer Protection Mark Pearce and SBA’s Deputy Associate Administrator for Entrepreneurial Development Michael Chodos released Money Smart for Small Business, a training curriculum … Continue Reading

U.S. Virgin Islands Corporations Allowed Fewer Directors

Posted in Corporate & Financial Services
As of the first day of 2012, U.S. Virgin Islands domestic corporations can have fewer than three directors, making it easier for smaller companies to establish themselves, the Office of the Lieutenant Governor announced Monday. V.I. law’s previous requirement of a minimum of three directors has historically placed a burden on some smaller companies, especially … Continue Reading

U.S. Virgin Islands Discusses Joint Insurance Exchange with West Virginia

Posted in Corporate & Financial Services
One place,  known for its Appalachian Mountains and rich coal supply,  was immortalized in John Denver’s 1970s hit, “Take Me Home, Country Roads.” The other has white sandy beaches, rum distilling and an average January high temperature of 86 degrees that attracts millions of tourists each year. From economy to climate, West Virginia and the U.S. Virgin Islands are as … Continue Reading

New Years Tips for Business Owners

Posted in Corporate & Financial Services
With the holidays over and a new year upon us, it is a natural time for business owners to map out strategies and goals for the next twelve months. Doing so allows businesses a chance to focus their energies on having a successful 2012 and gives them a metric by which to measure their successes … Continue Reading

Covering Your Assets

Posted in Corporate & Financial Services
The regular observance of corporate formalities is an important aspect of maintaining the protections and advantages of being incorporated, not the least of which is the protection of shareholders against personal liability for the financial obligations of the corporation… Continue Reading

Selling Your Island Business

Posted in Corporate & Financial Services
Most small business owners in the Virgin Islands are too busy building and maintaining their businesses to devote much time or energy to planning for their disposition. The difficulty with this approach is that the decision to sell the business is often made under circumstances, such as physical or fiscal illness, “battle fatigue,” or other circumstances … Continue Reading

Raising Capital in the U.S. Virgin Islands

Posted in Corporate & Financial Services
There are significant legal restrictions on how you can solicit investors. Federal and U.S. Virgin Islands securities laws require that any stock, limited liability company membership interest, note, or similar investment that you sell to raise capital for your business must be either registered with the Securities and Exchange Commission and the Virigin Islands Division of … Continue Reading

First BanCorp Announces Agreements for Capital Commitments

Posted in Corporate & Financial Services
  First BanCorp (the “Corporation”) (NYSE: FBP), the bank holding company for FirstBank Puerto Rico (“FirstBank” or “the Bank”), announced earlier today that it has entered into an agreement with two funds managed by Oaktree Capital Management, L.P. (together “Oaktree”) under which Oaktree would purchase an aggregate of approximately $175.5 million of common stock of the Corporation … Continue Reading

Tech Park Can Offer Investors Savings and Simplicity

Posted in Corporate & Financial Services, Government Relations, Tax & Estate Planning
The USVI attracts many businesses to its shores by offering generous tax incentives to qualifying companies that are approved by the Economic Development Commission (“EDC”). However, fewer people seem to be aware that those same benefits—90% reduction in income tax liability; 100% exemption on real property taxes, gross receipts taxes, and excise taxes, and a … Continue Reading

Governor Signs Bill Protecting VI Consumers Utilizing Debt Management Services

Posted in Corporate & Financial Services
 The Uniform Debt-Management Services Act (UDMSA) was signed into law  by Governor John P. deJongh Jr. of the Virgin Islands last Wednesday.  The act sponsored by St. Croix senators Terrence Nelson, Neville James and Samuel Sanes was drafted and approved by the Uniform Law Commission (ULC).   The UDMSA, approved by the ULC in 2005 and … Continue Reading

IRS Scrutizes Offshore Hedge Fund Lending

Posted in Corporate & Financial Services
The Internal Revenue Service has released an internal memorandum indicating that it will give close audit scrutiny to offshore hedge funds that engage in lending activities with U.S. residents.  A number of hedge funds have relocated to the U.S. Virgin Islands to take advantage of the Territory’s Economic Development Commission (EDC) Program which exempts such funds … Continue Reading