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BVI economic substance
self-assessement tool

Let's check whether your company is subject to BVI economic substance requirements!

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Disclaimer:

The information contained in this tool is for general information purpose only. This tool is made available based upon the legislation of BVI Final Rules on Economic Substance; BVI Economic Substance (Companies and Limited Partnerships) Act, 2018 and its subsequent amendments; and BVI BOSS Act. You should not substitute the information provided in this tool for competent legal advice. For further in-dept understanding of how BVI economic substance requirements work on your specific circumstance, please engage professional advice.

In no event will we take responsibility for the adequacy or completeness of any information in this tool. Any reliance on this tool which may then cause any loss or damage of any kind shall be solely at your own risk.

Qualification Test

Compliance Requirement

Reporting Obligation

Legal Entity
Relevant Activities
Tax Residency

What is the legal type of your business entity in BVI?

Does your limited partnership has separate legal personality?

Your business entity DOESN’T fall within the scope of BVI economic substance.

Is your BVI entity licensed under Financial Services Commission (FSC)?

What type of business activities does your BVI entity involve in?

Your BVI entity must be licensed by Financial Services Commission to conduct Banking business.

Your BVI entity must be licensed by Financial Services Commission to conduct Insurance business.

Does your BVI entity take part in any of the following activities?

  • Managing Segregated Portfolios (excluding Mutual Funds)
  • Managing Mutual Funds
  • Managing Pension Schemes
  • Managing Insurance Products
  • Managing Other Types of Investment.

Your BVI entity must be licensed by Financial Services Commission to conduct Fund management business.

Your business entity DOESN’T fall within the scope of BVI economic substance.

Does your BVI entity provide credit facilities of any kind for consideration including, but not limited to interests, installments, etc.?

Is finance and leasing activity an incidental part of your BVI entity’s business?

Your business entity DOESN’T fall within the scope of BVI economic substance.

Your business entity DOESN’T fall within the scope of BVI economic substance.

Does your BVI entity provide any of the following services to an entity in the same group:

(a) the provision of senior management

(b) the assumption or control of material risk for activities carried out by any of these entities in the same group

(c) the provision of substantive advice in connection with the assumption or control of risk referred to in paragraph (b)

FAQs

How is "Group" mentioned above defined?

“Group”, as defined in BVI Business Companies Regulations 2012, means the first company and

any other company that is

(a) a parent of the first company;

(b) a subsidiary of the first company;

(c) a subsidiary of a parent of the first company; or

(d) a parent of a subsidiary of the first company;

Your business entity DOESN’T fall within the scope of BVI economic substance.

Does your BVI entity participate in any of the following activities in shipping operation anywhere in the world?

a. the business of transporting, by sea, persons, animals, goods or mail;

b. the renting or chartering of ships for the purpose described in paragraph (a);

c. the sale of travel tickets or equivalent, and ancillary services connected with the operation of a ship;

d. the use, maintenance or rental of containers, including trailers and other vehicles or equipment for the transport of containers, used for the transport of anything by sea;

e. the management of the crew of a ship.

Your business entity DOESN’T fall within the scope of BVI economic substance.

Does your BVI entity only hold equity participations in other entities (pure equity holding) and only earns dividends and capital gains?

FAQs

What forms of equity participation that count toward equity holding as aforementioned?

Equity participation includes shares in a company and other forms of investment in an entity which give the investor the right to participate in the profits of the entity. It also comprises the interest of a limited partner in a limited partnership.

Owners of other form of assets i.e. bonds, government securities, legal or beneficial interests in real property) will not be deemed as carrying on holding business.

Your business entity DOESN’T fall within the scope of BVI economic substance.

Does your BVI entity derive any of following income types from holding intellectual property asset?

(a) royalties;

(b) capital gains and other income from the sale of an intellectual property asset;

(c) income from a franchise agreement; and

(d) income from licensing the intangible asset;

FAQs

How does BVI Economic Substance Act (ESA) define intellectual property asset?

“Intellectual property assets” are defined under BVI ESA as follows:

“Intellectual property asset” means any intellectual property right in intangible assets, including but not limited to copyright, patents, trade marks, brand, and technical know-how, from which identifiable income accrues to the business.

Your business entity DOESN’T fall within the scope of BVI economic substance.

Does your BVI entity take part in business which consists of purchasing assets from other entities in the same group, and/or a business providing services to entities in the same group?

Do note that distribution and service centre business excludes below cases:

  • Both entities in the same group are located in the BVI; or
  • Occasional and not-for-profit transactions.

FAQs

What does distribution and service centre business mean?

“Distribution and service centre business” is defined in BVI ESA as the following:

(a) purchasing from foreign affiliates

  • component parts or materials for goods; or
  • goods ready for sale; and
  • reselling such component parts, materials or goods;

(b) providing services to foreign affiliates in connection with the business

“Affiliates” relate to a company which is in the same group of the other company.

How is "Group" mentioned above defined?

“Group”, as defined in BVI Business Companies Regulations 2012, means the first company and any other company that is

(a) a parent of the first company;

(b) a subsidiary of the first company;

(c) a subsidiary of a parent of the first company; or

(d) a parent of a subsidiary of the first company;

Your business entity DOESN’T fall within the scope of BVI economic substance.

Your business entity DOESN’T fall within the scope of BVI economic substance.

Are your BVI legal entity subject to tax in the jurisdiction other than BVI?

Your BVI business entity will be deemed as compliant with BVI Economic substance requirement if it:

  • Conforms to the legislative requirements of the Limited Partnerships Act, 2017, and
  • Has, in the Virgin Islands, adequate employees and premises for holding equity participations and, where it manages those equity participations, has, in the Virgin Islands, adequate employees and premises for carrying out that management.

Where your BVI entity actively manages its equity participations, it should have adequate and suitably qualified employees, and appropriate premises, in the BVI to carry out this function. Likewise, if your BVI entity is simply holding equity participation, the use of services of a registered agent will be also considered in assessing your compliance status.

Your BVI business entity will be deemed as compliant with BVI Economic substance requirement if it:

  • Conforms to the legislative requirements of the Business Companies Act, 2004, and
  • Has, in the Virgin Islands, adequate employees and premises for holding equity participations and, where it manages those equity participations, has, in the Virgin Islands, adequate employees and premises for carrying out that management.

Where your BVI entity actively manages its equity participations, it should have adequate and suitably qualified employees, and appropriate premises, in the BVI to carry out this function. Likewise, if your BVI entity is simply holding equity participation, the use of services of a registered agent will be also considered in assessing your compliance status.

Is your BVI legal entity tax resident of the jurisdiction mentioned in Annex 1 to the EU list of non-cooperative jurisdictions for tax purposes?

You can check Annex 1 list HERE

FAQs

How can I prove that my BVI company is tax resident in other country?

Legal entity must make a claim of being non-resident company or non-resident limited partnership and must support that claim to the ITA. Sample proofs of tax resident outside BVI include:

  • A letter or certificate from the competent authority of the jurisdiction in question stating that the entity is considered to be resident for tax purpose in that jurisdiction.
  • Tax assessment on the entity, a confirmation of self-assessment to tax, a tax demand, evidence of tax payment, or any other document issued by the competent authority of the jurisdiction in question.

Your business entity DOESN’T fall within the scope of BVI economic substance.

Your BVI business entity will be deemed as compliant with BVI Economic substance requirement if it:

  • Conforms to the legislative requirements of the [Business Companies Act, 2004 | the Limited Partnerships Act, 2017], and
  • Has, in the Virgin Islands, adequate employees and premises for holding equity participations and, where it manages those equity participations, has, in the Virgin Islands, adequate employees and premises for carrying out that management.

Where your BVI entity actively manages its equity participations, it should have adequate and suitably qualified employees, and appropriate premises, in the BVI to carry out this function.

Likewise, if your BVI entity is simply holding equity participation, the use of services of a registered agent will be also considered in assessing your compliance status.

Does you BVI entity:

(a) acquire the IP asset

  • from an affiliate; or
  • in consideration for funding research and development by another person situated in a country or territory other than the Virgin Islands; and

(b) licences the intellectual property asset to one or more affiliates or otherwise generates income from the asset in consequence of activities (such as facilitating sale agreements) performed by foreign affiliates.

Your BVI IP holding business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI IP business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;
  • Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to IP businesses are as follows:

  • Where the business concerns intellectual property assets such as patents, research and development;
  • Where the business concerns non-trade intangible assets such as brand, trademark and customer data, marketing, branding and distribution.

For being considered as ‘’high risk IP legal entity’’ under the Economic Substance Act, you will face a presumption that you are not conducting core income-generating activities and will need a high evidential threshold than a normal IP business.

In particular, you must ensure a high degree of control over the development, exploitation, maintenance, enhancement and protection of the intellectual property asset is exercised by your suitably qualified employees:

  • Who are physically present and perform their functions from within the Virgin Islands; and
  • Who are on long-term contracts.

Your BVI IP holding business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI IP business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to IP businesses are as follows:

  • Where the business concerns intellectual property assets such as patents, research and development;
  • Where the business concerns non-trade intangible assets such as brand, trademark and customer data, marketing, branding and distribution.

Due to the fact that IP businesses present a higher risk of artificial profit shifting, you will face a presumption that you are not conducting core income-generating activities if the activities being carried on from within the BVI don’t include any of the aforementioned activities.

You can rebut the above presumption by proving that the activities in relation to your intangible asset being carried on from within the Virgin Islands include making the strategic decisions and managing, as well as bearing the principal risk related to following aspects:

  • development and subsequent exploitation of the intangible asset generating income;
  • acquisition by third parties and subsequent exploitation of the intangible asset;
  • carrying on the underlying trading activities through which the intangible assets are exploited and which lead to the generation of revenue from third parties.

Speak simply, your BVI entity must employ local, permanent and qualified staff who make active and ongoing decisions in relation to the generation of income in the BVI.

Your BVI business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with the CIGA test, core income-generating activities in relation to your BVI business can be as follows:

For banking business:

  • raising funds, managing risk including credit, currency and interest risk;
  • taking hedging positions;
  • providing loans, credit or other financial services to customers;
  • managing regulatory capital;
  • preparing regulatory reports and returns;

For insurance business:

  • predicting and calculating risk;
  • insuring or re-insuring against risk;
  • providing insurance business services to clients;

For fund and management business:

  • taking decisions on the holding and selling of investments;
  • calculating risks and reserves;
  • taking decisions on currency or interest fluctuations and hedging positions;
  • preparing relevant regulatory or other reports for government authorities and investors;

Your BVI Banking business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to banking businesses are as follows:

  • raising funds, managing risk including credit, currency and interest risk;
  • taking hedging positions;
  • providing loans, credit or other financial services to customers;
  • managing regulatory capital;
  • preparing regulatory reports and returns;

Your BVI Fund management business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to fund management businesses are as follows:

  • taking decisions on the holding and selling of investments;
  • calculating risks and reserves;
  • taking decisions on currency or interest fluctuations and hedging positions;
  • preparing relevant regulatory or other reports for government authorities and investors;

Your BVI Insurance business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to insurance businesses are as follows:

  • predicting and calculating risk;
  • insuring or re-insuring against risk;
  • providing insurance business services to clients;

Your BVI Finance and leasing business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to finance and leasing businesses are as follows:

  • agreeing funding terms;
  • identifying and acquiring assets to be leased (in the case of leasing);
  • setting the terms and duration of any financing or leasing;
  • monitoring and revising any agreements;
  • managing any risks;

Your BVI Headquarters business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to headquarters businesses are as follows:

  • taking relevant management decisions;
  • incurring expenditures on behalf of affiliates;
  • co-ordinating group activities;

Your BVI Distribution and service centres business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to distribution and service centre businesses are as follows:

  • transporting and storing goods;
  • managing stocks;
  • taking orders;
  • providing consulting or other administrative services;

Your BVI Shipping business will be considered compliant with the economic substance requirements if it can meet following tests:

a. Direction and management in BVI;

With the condition of direction and management in BVI, following factors will be taken into account:

  • An adequate number of board meetings held in the BVI. For a board meeting to be held in the BVI there must be a quorum of directors physically present in the BVI.
  • The directors of the legal entity attending such meetings must include among their number adequate expertise to direct the relevant activity.
  • Decisions of the Board regarding the relevant activity must be minuted, and minutes of those decisions are expected to be kept in the BVI.

b. Adequate expenditure and employees and appropriate premises in BVI;

As for adequacy test of your BVI business, you must make sure that:

  • There are an adequate number of suitably qualified employees in relation to that activity who are physically present in the Virgin Islands (whether or not employed by the relevant legal entity or by another entity and whether on temporary or long-term contracts);
  • There is adequate expenditure incurred in the Virgin Islands;
  • There are physical offices or premises as may be appropriate for the core income-generating activities; and
  • Where the relevant activity is intellectual property business and requires the use of specific equipment, that equipment is located in the Virgin Islands;

Though terms “adequate”, ‘’suitable’’, or ‘’approriate’’ are not defined, you will be assessed based on your actual needs according to your business size and nature.

c. Core-Income-Generating-Activity (CIGA) carried on in BVI.

And with CIGA test, core income-generating activities in relation to shipping businesses are as follows:

  • managing the crew (including hiring, paying and overseeing crewmembers);
  • hauling and maintaining ships;
  • overseeing and tracking deliveries;
  • determining what goods to order and when to deliver them;
  • organizing and overseeing voyages;
Timeline Reporting

Reporting regime of BVI ESA is built upon reporting requirements of Beneficial Ownership Act (BOSS Act). The substance requires further information reporting to help International Tax Authority (ITA) determine whether a relevant legal entity falls within the scope of economic substance, and if so, whether the entity is complying with the substance requirements.

According to your classification result in previous 2 steps, you are required to provide following information annually to the ITA through your registered agent:

Company Particulars

The particulars of each corporate and legal entity including

  • the name, including alternative names;
  • the incorporation number or its equivalent;
  • date of incorporation;
  • status;
  • registered address;
  • whether it carries on a relevant activity;
  • any relevant activities which it carries on; and
  • any other particulars as the Minister may by Order prescribe.

Beneficial Owner Information

If applicable, your entity must also submit required documents in respect of  the following groups:

(a) with respect to each beneficial owner of the corporate or legal entity:

  • name;
  • residential address;
  • date of birth; and
  • nationality.

(b) with respect to each registrable legal entity of the corporate and legal entity:

  • details of the registrable legal entity as outlined below:
    • the name, including alternative names;
    • the incorporation number or its equivalent;
    • date of incorporation;
    • status;
    • registered address.
  • jurisdiction in which the registrable legal entity is formed;
  • the basis or bases upon which the legal entity is designated as a registrable legal entity;
  • where the registrable legal entity is a foreign regulated person, the name of the jurisdiction of regulation and the name of the foreign regulator; or
  • where the registrable legal entity is a sovereign state or a wholly owned subsidiary of a sovereign state the name of that sovereign state and (if applicable) wholly owned subsidiary.

(c) with respect to an exempt person

  • the details of the exempt person as outlined in the above section of “Company Particulars; and
  • the basis or bases upon which the exempt person is designated as an exempt person.

(d) with respect to any corporate and legal entity which is registered on a recognised stock exchange, details of the stock exchange listing.

Do note that information related to registrable legal entities and beneficial owners needs to be updated to your registered agent within 15 days of becoming aware of such changes.

Kindly contact us to learn more about our solutions for helping your BVI company comply with the substance rules.

Timeline Reporting

Reporting regime of BVI ESA is built upon reporting requirements of Beneficial Ownership Act (BOSS Act). The substance requires further information reporting to help International Tax Authority (ITA) determine whether a relevant legal entity falls within the scope of economic substance, and if so, whether the entity is complying with the substance requirements.

According to your classification result in previous 2 steps, you are required to provide following information annually to the ITA through your registered agent:

Company Particulars

The particulars of each corporate and legal entity including

  • the name, including alternative names;
  • the incorporation number or its equivalent;
  • date of incorporation;
  • status;
  • registered address;
  • whether it carries on a relevant activity;
  • any relevant activities which it carries on; and
  • any other particulars as the Minister may by Order prescribe.

Beneficial Owner Information

If applicable, your entity must also submit required documents in respect of the following groups:

(a) with respect to each beneficial owner of the corporate or legal entity:

  • name;
  • residential address;
  • date of birth; and
  • nationality.

(b) with respect to each registrable legal entity of the corporate and legal entity:

  • details of the registrable legal entity as outlined below:
    • the name, including alternative names;
    • the incorporation number or its equivalent;
    • date of incorporation;
    • status;
    • registered address.
  • jurisdiction in which the registrable legal entity is formed;
  • the basis or bases upon which the legal entity is designated as a registrable legal entity;
  • where the registrable legal entity is a foreign regulated person, the name of the jurisdiction of regulation and the name of the foreign regulator; or
  • where the registrable legal entity is a sovereign state or a wholly owned subsidiary of a sovereign state the name of that sovereign state and (if applicable) wholly owned subsidiary.

(c) with respect to an exempt person

  • the details of the exempt person as outlined in the above section of “Company Particulars; and
  • the basis or bases upon which the exempt person is designated as an exempt person.

(d) with respect to any corporate and legal entity which is registered on a recognised stock exchange, details of the stock exchange listing.

Relevant Activity Information

(a) with respect to each relevant activity:

  • the total turnover generated by the relevant activity (the total amount of expenditure incurred on the relevant activity);
  • the amount of expenditure incurred on the relevant activity within the Virgin Islands;
  • the total number of employees engaged in the relevant activity;
  • the number of employees engaged in the relevant activity within the Virgin Islands;
  • the address of any premises within the Virgin Islands which is used in connection with the relevant activity and the address of each such premises;
  • in the case of a corporate and legal entity which carries on an intellectual property business, the nature of any equipment located within the Virgin Islands which is used in connection with the relevant activity;
  • the names of the persons responsible for the direction and management of the relevant activity, together with their relationship to the company and whether they are resident in the Virgin Islands;

(b) in addition to prescribed information in above paragraph, in relation to Intellectual property business:

  • whether or not the corporate or legal entity is a high risk IP legal entity
  • whether the corporate or legal entity wishes to contest the rebuttable presumption, and the facts and matters relied upon.

CIGAs Supporting Information

Where core income-generating activity is carried out by another entity, the name of the entity which carries out that activity on its behalf, together with details of the resources deployed by that entity in carrying out the activity on its behalf. (these documents ONLY are required if the entity outsources CIGAs to the 3rd party)

Do note that information related to registrable legal entities and beneficial owners needs to be updated to your registered agent within 15 days of becoming aware of such changes.

Kindly contact us to learn more about our solutions for helping your BVI company comply with the substance rules.

Timeline Reporting

Reporting regime of BVI ESA is built upon reporting requirements of Beneficial Ownership Act (BOSS Act). The substance requires further information reporting to help International Tax Authority (ITA) determine whether a relevant legal entity falls within the scope of economic substance, and if so, whether the entity is complying with the substance requirements.

According to your classification result in previous 2 steps, you are required to provide following information annually to the ITA through your registered agent:

Company Particulars

The particulars of each corporate and legal entity including

  • the name, including alternative names;
  • the incorporation number or its equivalent;
  • date of incorporation;
  • status;
  • registered address;
  • whether it carries on a relevant activity;
  • any relevant activities which it carries on; and
  • any other particulars as the Minister may by Order prescribe.

Beneficial Owner Information

If applicable, your entity must also submit required documents in respect of the following groups:

(a) with respect to each beneficial owner of the corporate or legal entity:

  • name;
  • residential address;
  • date of birth; and
  • nationality.

(b) with respect to each registrable legal entity of the corporate and legal entity:

  • details of the registrable legal entity as outlined below:
    • the name, including alternative names;
    • the incorporation number or its equivalent;
    • date of incorporation;
    • status;
    • registered address.
  • jurisdiction in which the registrable legal entity is formed;
  • the basis or bases upon which the legal entity is designated as a registrable legal entity;
  • where the registrable legal entity is a foreign regulated person, the name of the jurisdiction of regulation and the name of the foreign regulator; or
  • where the registrable legal entity is a sovereign state or a wholly owned subsidiary of a sovereign state the name of that sovereign state and (if applicable) wholly owned subsidiary.

(c) with respect to an exempt person

  • the details of the exempt person as outlined in the above section of “Company Particulars; and
  • the basis or bases upon which the exempt person is designated as an exempt person.

(d) with respect to any corporate and legal entity which is registered on a recognised stock exchange, details of the stock exchange listing.

Relevant Activity Information

( a) with respect to each relevant activity:

  • the total turnover generated by the relevant activity (the total amount of expenditure incurred on the relevant activity);
  • the amount of expenditure incurred on the relevant activity within the Virgin Islands;
  • the total number of employees engaged in the relevant activity;
  • the number of employees engaged in the relevant activity within the Virgin Islands;
  • the address of any premises within the Virgin Islands which is used in connection with the relevant activity and the address of each such premises;
  • in the case of a corporate and legal entity which carries on an intellectual property business, the nature of any equipment located within the Virgin Islands which is used in connection with the relevant activity;
  • the names of the persons responsible for the direction and management of the relevant activity, together with their relationship to the company and whether they are resident in the Virgin Islands;

(b) with respect to the parent (if any) of any corporate and legal entity which carries on a relevant activity and which claims to be outside the scope of the economic substance requirements by reason of being a non-resident company or a non-resident limited partnership:

  • details of the parent as outlined in subsection (3)(a) (i) and (ii);
  • jurisdiction in which the parent is formed

CIGAs Supporting Information

Where core income-generating activity is carried out by another entity, the name of the entity which carries out that activity on its behalf, together with details of the resources deployed by that entity in carrying out the activity on its behalf. (these documents ONLY are required if the entity outsources CIGAs to the 3rd party)

Do note that information related to registrable legal entities and beneficial owners needs to be updated to your registered agent within 15 days of becoming aware of such changes.

Kindly contact us to learn more about our solutions for helping your BVI company comply with the substance rules.

Timeline Reporting

Reporting regime of BVI ESA is built upon reporting requirements of Beneficial Ownership Act (BOSS Act). The substance requires further information reporting to help International Tax Authority (ITA) determine whether a relevant legal entity falls within the scope of economic substance, and if so, whether the entity is complying with the substance requirements.

According to your classification result in previous 2 steps, you are required to provide following information annually to the ITA through your registered agent:

Company Particulars

The particulars of each corporate and legal entity including

  • the name, including alternative names;
  • the incorporation number or its equivalent;
  • date of incorporation;
  • status;
  • registered address;
  • whether it carries on a relevant activity;
  • any relevant activities which it carries on; and
  • any other particulars as the Minister may by Order prescribe.

Beneficial Owner Information

If applicable, your entity must also submit required documents in respect of  the following groups:

(a) with respect to each beneficial owner of the corporate or legal entity:

  • name;
  • residential address;
  • date of birth; and
  • nationality.

(b) with respect to each registrable legal entity of the corporate and legal entity:

  • details of the registrable legal entity as outlined below:
    • the name, including alternative names;
    • the incorporation number or its equivalent;
    • date of incorporation;
    • status;
    • registered address.
  • jurisdiction in which the registrable legal entity is formed;
  • the basis or bases upon which the legal entity is designated as a registrable legal entity;
  • where the registrable legal entity is a foreign regulated person, the name of the jurisdiction of regulation and the name of the foreign regulator; or
  • where the registrable legal entity is a sovereign state or a wholly owned subsidiary of a sovereign state the name of that sovereign state and (if applicable) wholly owned subsidiary.

(c) with respect to an exempt person

  • the details of the exempt person as outlined in the above section of “Company Particulars; and
  • the basis or bases upon which the exempt person is designated as an exempt person.

(d) with respect to any corporate and legal entity which is registered on a recognised stock exchange, details of the stock exchange listing.

Tax Residency Proof

The jurisdiction in which it is tax resident together with evidence to support that tax residence.

Do note that information related to registrable legal entities and beneficial owners needs to be updated to your registered agent within 15 days of becoming aware of such changes.

Kindly contact us to learn more about our solutions for helping your BVI company comply with the substance rules.