Key Legislative Updates that a BVI Offshore Company Should Know
The British Virgin Islands (BVI) has recently undergone several significant legislative changes that affect various industries and areas of business. If you’re planning to establish a BVI Offshore Company, then you must know the most notable updates. Here are the most recent updates.
BVI Business Companies (Amendment) Act, 2022
This is a major update that affects all BVI business companies. The key changes introduced by the Act include the requirement for a BVI offshore company to file an annual report with the BVI Registrar of Corporate Affairs, the introduction of a new register of directors that must be maintained by all BVI companies, and the increased flexibility for BVI businesses to pay dividends and repurchase shares. Moreover, the Act allows BVI offshore companies to issue redeemable shares. It can be redeemed at a future date or at the preference of the holder.
Economic Substance Act (ESA)
In 2019, the BVI enacted the Economic Substance Act, which requires certain companies registered in the BVI to demonstrate that they have substantial economic activity in the jurisdiction. This legislation aims to meet the EU’s requirements for tax transparency and fair competition. Companies that are affected by the ESA must submit an economic substance report to the BVI International Tax Authority annually.
Beneficial Ownership Secure Search System Act (Revised 2020)
The BVI government recently revised the BOSS Act to enhance the secure search system for beneficial ownership information of companies registered in the jurisdiction. The amendments include the introduction of a new platform, BOSSs, to replace the previous BOSS system. Also, the BOSSs platform is designed to improve the efficiency and accuracy of beneficial ownership data collection and sharing. This is important in combating money laundering and other financial crimes. So, under the Revised BOSS Act, BVI companies are required to maintain updated beneficial ownership information in the secure search system, and designated authorities can access this information for investigative purposes. In brief, the Revised BOSS Act is part of the BVI’s ongoing efforts to meet international standards for transparency and combatting financial crimes.
Limited Partnership Act
The BVI recently amended its Limited Partnership Act, which governs the formation and operation of limited partnerships. Furthermore, the amendments include the introduction of a new category of limited partnerships, known as “private fund limited partnerships,” which are specifically designed for investment funds.
Trusts Act
The BVI has modernized its Trusts Act to align with international standards and enhance the jurisdiction’s position as a leading offshore trust jurisdiction. Thus, the amendments include increased flexibility for settlors and trustees and greater protection of beneficiaries’ rights.
Anti-Money Laundering and Counter-Terrorism Financing (AML/CFT) Legislation
The BVI has implemented several updates to its AML/CFT legislation, including the introduction of beneficial ownership requirements and enhanced due diligence measures. These changes aim to ensure that the BVI continues to meet international standards for combating money laundering and terrorist financing.
Key Takeaway
In conclusion, it is essential for individuals and businesses operating in the BVI to stay updated with these legislative changes. This is to ensure compliance and avoid any potential legal problems. By working with legal and financial professionals who are knowledgeable about the latest developments in BVI legislation, such as Skwer Group. With a local partner, companies can take advantage of the many benefits of doing business in BVI while ensuring compliance with all applicable laws and regulations.
If you need assistance to establish your next business venture in BVI, then you may send us an email at info@skwergroup.com or use our live chat app in this site. Our offshore company formation consultants are always ready to assist you.
