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.Try our ES self-assessment tool
BVI Economic Substance pricing
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Local employees, and premises
**includes Government taxes/contributions of approximately $35 monthly
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Frequently Asked Questions
How can Economic Substance Requirements affect your BVI company
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 >>
What are “relevant activities” under the BVI ES regime?
Economic substance requirements in the BVI are applicable to legal entities that engage in one or more relevant activities as the followings:
- Fund management
- Finance and leasing
- Holding business/pure equity holding
- Intellectual property (IP)
- Distribution and service centre
What are the reporting requirements for an entity being the tax resident and carrying on a relevant activity in the BVI?
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.
What are deadlines for your BVI entities to submit Economic Substance Report?
All BVI companies and limited partnerships (with legal personality) must submit economic substance report within 6 months from the end of their financial period.
Their financial period will be determined as below:
- For companies and limited partnerships (with legal personality) incorporated on or after 1 Jan 2019, the financial period will be no more than 1 year from the date of incorporation.
- For companies and limited partnerships (with legal personality) incorporated before that date, the financial period will rest for one year and start no later than 30 Jun 2019. In other words, such entities don’t have to comply with substance regulation until 30 Jun 2019.
All BVI limited partnerships without legal personality must submit an annual ES report within 18 months from the commencement of the financial period.
Their financial period is as follow:
- For BVI limited partnerships without legal personality formed before 1 July 2021, their first “financial period” must commence no later than 1 January 2022.
- For BVI limited partnerships without legal personality formed on or after 1 July 2021, their first “financial period” will commence on its date of formation or registration.