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2018.10.23 - British Virgin Islands – the period for submitting data on directors to the register is elapsed.

 

As is known, the corporate legislation of British Virgin Islands in 2015 was amended by a new regulatory act - the BVI Companies Amendment Act 2015, which introduced the requirement for all companies registered in BVI to submit the information about their directors to the BVI register of enterprises.

More information about the above rule is included in our publication at that time: 2016.01.12. - British Virgin Islands – Companies Amendment Act 2015

If the data about the directors was not submitted to the register of enterprises – then, starting from 01.04.2017., the penalties were applied to a non-compliant company - which could reach even the amount of 8.000 USD.

In continuation of the above matter, the BVI Financial Services Commission on 03.10.2018 published a circular (Industry Circular No.5 of 2018) - BVI Business Companies Act (Amendment of Schedule) (No.3) Order, 2018.

The most meaningful points of the circular are the following:

  1. The maximum amount of penalties for late registration of data on directors was reduced from 8,000 USD to 5,000 USD.
  2. For companies that have previously paid a higher amount of penalties into the budget, the balance exceeding 5.000 USD is a subject to refund.
  3. Companies that have not complied with the requirement on submitting of data on directors to the register of enterprises, since 01.10.2018. are not able to obtain a Certificate of Goodstanding.
  4. Companies that have not complied with the requirement on submitting of data on directors to the register of enterprises, will be struck off on 02.01.2019.
  5. A company that is registered after 01.04.2016, has been struck-off the register of enterprises and wants to be restored, before that must pay all applied penalties, including (if the data on directors has not been provided to the register of enterprises) - also the penalties for violation of the above rule.

After the introduction of the BVI Companies Amendment Act 2015, the Section 118b) of the BVI Companies Act 2004 establishes that in the case of change of directors of a company, the updated information must be submitted to the register of enterprises not later than within 21 day after effecting the changes. In the event that providing the data on new directors to the register of enterprises is delayed, a penalty in the amount of 100 USD is charged, thereafter increasing by 25 USD for each day.

Now, the Circular No.5 of 2018 in addition establishes that if the company did not fulfil the above requirement within 9 months after its registration, it will be struck-off from the register.

Comments by INTERNATIONAL OVERSEAS SERVICES:

Being one of the most highly developed and technologically advanced tax-free jurisdictions in the world, the British Virgin Islands continues to develop and strengthen its corporate legislation.

The procedure for delivering of information on directors to the register of enterprises, now in the BVI is clearly detailed – and the delayed registration of changes of directors now becomes expensive. Documents which are necessary for the initial submission of data on directors (in the case of registration of a new company), as well as the data in the case of change of an existing director, must be provided in a timely manner to avoid penalties, i.e. - the register must be notified within 21 day after the registration of a company, or after effecting a change of director.

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