British Virgin Islands. Legislation on economic substance.
The British Virgin Islands Registry applies penalties to companies that go out of business. The directors of the company are responsible.
All companies in the British Virgin Islands, including those excluded from January 1, 2016, are now required to report their economic situation annually.
When a British Virgin Islands company ceases to operate, it will be removed from the corporate register by the Registrar. Such a company is prohibited by law from doing any business.
The exclusion of the company has always been accompanied by risks associated with current liabilities, but the situation has changed radically since the introduction of the economic substance regime and its current reporting obligations. The economic substance is still in effect and has not been canceled.
BVI companies that are no longer needed should be closed by voluntary liquidation, as opposed to the method of exclusion, as the Act does not exempt delisted companies from reporting their economic content.
If you later attempt to reinstate the company, all fees and penalties incurred by the company during its removal from the register, including penalties for non-compliance with economic substance requirements, will be paid upon reinstatement.
- Penalty for non-compliance: $ 5,000 and $ 20,000 ($ 50,000 if the organization is subject to high-risk intellectual property).
- Subsequent findings of non-compliance: $ 10,000 and $ 200,000 ($ 400,000 for high-risk intellectual property).
- Unnecessary companies.
If your company in the British Virgin Islands has a good reputation but is no longer needed: it should be closed by voluntary liquidation. We can offer a solution to help you with your reporting to ensure that your legal economic obligations are met without hindrance. Upon completion, we will arrange for the required zero reporting each year until the possible dissolution of the company.
If your BVI company is delisted from the register.
We can restore your company in the British Virgin Islands in accordance with the law. We can also help with filling out the Economic Presence Report – contact us now!