Comparing the US Virgin Islands and British Virgin Islands: Which One Is Better For Business?

The world is full of places with names so similar, it’s easy to confuse them, until legal, financial, or political realities highlight just how different they truly are. Just as there is a Panama City in both Panama and Florida, or cities with similar names, like Grenada and Granada, we find the US Virgin Islands and British Virgin Islands, two names that often confuse travelers and entrepreneurs alike. While the names suggest similarity and even though they are very close to each other geographically, these jurisdictions operate under distinct flags, laws, and business environments.

Understanding The British Virgin Islands, US Virgin Islands As Separate Jurisdictions 

Where Are They Located

The US Virgin Islands are located in the Caribbean and form an unincorporated territory of the United States. Their capital is Charlotte Amalie on the island of Saint Thomas. The islands operate under U.S. federal law, use the U.S. dollar, and residents are American citizens. They lie approximately 1,100 miles from Miami, about 1,600 miles from New York, and around 4,200 miles from London, making them a relatively accessible destination from both North America and Europe. 

Just a few miles away, also in the Caribbean, are the British Virgin Islands, a British Overseas Territory. The administrative capital of the British Virgin Islands is Road Town, situated on the island of Tortola, the largest and most populated island in the territory. Though governed under the British legal system, the islands enjoy autonomy in internal affairs.

It’s interesting to note how close the British Virgin Islands are to their American namesake. We can see this by comparing the distances described above. The distance from Miami to Tortola is around 1,100 miles, while it lies 1,500 miles from New York, and just under 4,000 miles from London. 

Book a meeting

Tracing The British Virgin Islands, US Virgin Islands Historical Paths 

Throughout the 17th and 18th centuries, the Caribbean archipelago became a region of strategic competition among European powers. Nations like Great Britain, Spain, France, Denmark, and the Netherlands vied for control over valuable maritime routes and island outposts. These rivalries shaped the destiny of many territories, including the British Virgin Islands and the US Virgin Islands, leading them down very different political and legal paths. 

The British Virgin Islands ultimately remained under British authority. That foundation later adapted to the needs of international finance and corporate structuring, making the territory a respected and stable location for global business. 

The US Virgin Islands, by contrast, were originally a Danish colony known as the Danish West Indies. In 1917, during World War I, the United States purchased the islands from Denmark for $25 million in gold. Since then, they have been governed under U.S. federal law, and their legal and business systems have reflected the country’s broader regulatory philosophy.

Why The British Virgin Islands Remain A Top Choice For Global Company Formation 

Company Formation In The British Virgin Islands 

If you’d ask us to choose one of these two for company incorporation, we wouldn’t have to think that long. The British Virgin Islands have long been recognized as a key destination for setting up international corporate structures. The jurisdiction offers a balance of confidentiality and a transparent legal and tax framework. 

At Mundo, we provide a well-structured, clear, and internationally compliant company formation service in this jurisdiction. It is especially relevant for those seeking a convenient setup for holding companies, trading activities, or investment structuring. The benefits of establishing a company in the BVI have stood the test of time, with legal stability and strong respect for private ownership making this territory a reliable choice for entrepreneurs. 

Choosing The Right Jurisdiction — Let Mundo Guide You 

The Mundo team supports clients through every stage of company formation in international jurisdictions, including Europe, the Caribbean, and Latin America. We help identify the most suitable structure based on your goals, tax exposure, corporate requirements, and desired level of confidentiality. Our mission is to simplify the process and offer a solution that truly works for your business. 

Disclaimer: This article is published for informational purposes only and does not constitute legal, tax, or investment advice. Before making decisions related to opening companies or investments, we recommend that you obtain personal advice from a qualified specialist. The Mundo team and the authors of the article are not responsible for actions taken based on this information. 

US Virgin Islands Or British Virgin Islands? Let’s Find What Suits You Best 

Jurisdictions with similar names can differ profoundly in history, legal frameworks, taxation, and corporate flexibility. This is why it’s important to know which is which and what each offers. While the US Virgin Islands brings a laid-back atmosphere to the table, international entrepreneurs often turn their attention to their neighbor: the British Virgin Islands. If you are interested in corporate services, the experts at Mundo are here to help you navigate these nuances and choose the option that best matches your goals, business scale, and legal priorities. 

Ask our experts