BVI Economic Substance

If the proposed business activities that your new BVI company is going to conduct fall within the regulated list, just make sure you’re well aware of your compliance duty regarding economic substance.

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Economic Substance

BVI Economic Substancce pricing

Classifying and Consulting

Legal assessment (optional but recommended)

*May be required if your self-assessment is challenged by ITA.

*May be required if your self-assessment is challenged by ITA.

USD 350/entity

Legal advice on restructuring to show substance

USD 1,369-1,899

Other ancillary solutions

Substance annual filing (BOSS filing)

USD 225/entity

Application for BVI trade license, tax ID and other Government related contributions

*Trade license is not required for companies that are using outsourcing services.

*Trade license is not required for companies that are using outsourcing services.

USD 899/entity
Economic Substance

Local employees, and premises

Independent full-service office space and monitoring services

*Rate can increase base on special request outside of the basic services outlined. Staff not included.

*Rate can increase base on special request outside of the basic services outlined. Staff not included.

USD 2,699/month

Pure Equity Substance services (office and employee via Registered Agent)

*No trade license is required for pure equity holding entities.
**includes Government taxes/contributions of approximately $35 monthly

*No trade license is required for pure equity holding entities.<br/>**includes Government taxes/contributions of approximately $35 monthly

USD 3,369/annum

Natural person director for pure equity holding companies only – (director not actively working with the entity daily)

*The fee may increase if the entity is considered high risk

*The fee may increase if the entity is considered high risk

USD 1,999/annually

Natural person director for other entities - (director not actively working with the entity daily)

*The fee may increase if the entity is considered high risk

*The fee may increase if the entity is considered high risk

USD 3,399/annum

Natural person director as a full-time employee in the full- service office space

*Rate may vary based on qualifications of the candidate

*Rate may vary based on qualifications of the candidate

USD 2,899/monthly and up

Employees to work in the full-service office space (junior)

*Rate may vary based on qualifications of the candidate

*Rate may vary based on qualifications of the candidate

USD 2,099/monthly and up

Employees to work in the full-service office space (senior)

*Rate may vary based on qualifications of the candidate

*Rate may vary based on qualifications of the candidate

USD 2,399/monthly and up

FAQs

Certain BVI companies carrying on relevant activities and not tax-residents in other jurisdictions shall be subject to the Economic Substance (Companies and Limited Partnerships) Act, 2018 in the BVI. All in-scope entities under this regime must fulfill the compliance duties for economic substance in respect with each relevant activity they engage in.

Uncertain whether your existing or proposed company is subject to BVI economic substance rule? You can get more information here >>

Economic substance requirements in the BVI are applicable to legal entities that engage in one or more relevant activities as the followings:

  • Banking
  • Insurance
  • Fund management
  • Finance and leasing
  • Headquarters
  • Shipping
  • Holding business/pure equity holding
  • Intellectual property (IP)
  • Distribution and service centre

All entities which carry on a relevant activity, unless they can prove they are tax resident outside the BVI, must demonstrate economic substance in the BVI. Particularly, those entities shall be required to submit certain documents, including:

  • Total revenue earned by the relevant activity in BVI;
  • Total operation spending on and by the relevant activity in BVI;
  • Total number of qualified employees engaging in relevant activity in BVI;
  • Address of premises in BVI in relation to the relevant activity;
  • Details of equipment in BVI in relation to the relevant activity;
  • Details of individuals in charge of direction and management of the relevant activity, and whether they are resident in BVI;
  • Details of the outsourcing entity and deployed resources, if the entity’s CIGAs are outsourced to another company.

The economic substance regulation has come into force since 1st Jan, 2019.

All entities regardless of conducting relevant activities or not must submit economic substance filing within 6 months from the end of their financial year.

Note that the financial year of a BVI company will be determined as below:

  • The financial period of all existing companies before 1 Jan 2019 started on 30 June 2019 and ended on 29 June 2020.
  • The financial period of all entities incorporated after 1 Jan 2019 starts from its incorporation date and will rest for one year.

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