BVI Version 2 of Rules on Economic Substance
On 10 February 2020, BVI ITA published version 2 of Rules on Economic Substance.
The British Virgin Islands (“BVI”) is located in the Caribbean Sea, approximately 30 minutes flying distance (80 kilometers) east of Puerto Rico. BVI is a British overseas territory and is one of the world’s leading offshore financial center. Its official language is English.
BVI Business Companies are exempted from taxation on business activities or transactions carried outside of the BVI. BVI has sound commercial constructions and communication systems, coupled with the widespread use of English and usage of English Common Law, the BVI is favoured by financiers and bankers around the world. Offshore companies, trusts, insurance companies and mutual funds on the islands are supported by the developed and well-trained professional services providers. The principle corporate legislation is the BVI Business Companies Act 2004.
Please NOTE: The time of annual license fee payable to the Companies Registrar is regardless of its incorporation date. The due dates are set at 31st May for 1st half companies (companies registered in January to June) and 30th November for 2nd half companies (companies registered in July to December) every year.
Type of Company
Business Company
Time to Incorporate
1-2 working days
Disclosure of Director / Shareholder Information / Beneficial Owner
Information of director, shareholder and beneficial owner is not accessible publicly, however a copy of the Register of Directors and information of beneficial owners must be filed with the Registrar of Companies
Taxation
Nil
Minimum Director
At least 1 director who can be natural person or corporate body
Minimum Shareholder
At least 1 shareholder who can be natural person or corporate body
Audit Requirement
No audit requirement for accounts
Filing of Accounts
Required to prepare accounts / Accounts are not accessible publicly
Filing of Annual Return
Not required
Economic Substance
Economic Substance Companies conducting certain activities in the BVI are required to comply with the Economic Substance requirements
* Fees vary based on the actual costs charged by the government
The information in this article is of a general nature only. We have made every effort to ensure that the information included herein is up-to-date and accurate, we do not accept any responsibility for any inaccuracy, errors or omission. We strongly recommend that applicable professional advice be taken prior to purchasing any company.