Is it profitable to register an offshore in the BVI in 2023
The British Virgin Islands is a recognized international center where 40% of offshore companies are registered. Until the last year, 2022, it guaranteed complete confidentiality and did not require financial reporting. Now all that has changed. In January, amendments to the Business Companies Act came into force, bringing the country closer to international standards of transparency. Be aware of them before you apply to register as an offshore company in the BVI in 2023.
Disclosure information about the directors
Until recently, information about BVI company directors was not publicly available. A registered agent could provide it to a third party only with the consent of the company owners or through a court.
As of January 1, 2023, this information is publicly available. A third party can find out the names of the current directors if they pay the appropriate fees. Personal information about these directors (address, citizenship, date of birth, etc.) will remain classified. Also the information about former directors who resigned before 2023 will be hidden.
No more bearer shares
In spite of the fact that bearer shares were banned in 2010, they were still in circulation up until recently. New amendments abolished them and converted them into registered shares.
Peculiarities of dissolving a company
A company that has been excluded from the BVI register (it usually occurs for non-payment of state fees) has only 90 days to correct the error. If it fails to do so, it will be liquidated. For comparison, until 2023, this period was 7 years.
The company, which was automatically liquidated, has the right to apply to the court for reinstatement. It can do it within 5 years after dissolution (it used to be 7 years).
Peculiarities of a liquidated company's reinstatement
Businesses can apply for reinstatement to the BVI registry within 5 years after the automatic dissolution. The prerequisite is that all data on shareholders and directors must be up-to-date. The restoration process must be coordinated with the registered agent who will act on behalf of the entity.
Financial statements and accounting
A company established in the BVI must file an annual report with the registered agent within 9 months after the end of the fiscal year.
This report will not be made public, as the registered agent must not submit it to the supervisory authority. But they must report to the Financial Services Commission if they do not receive the report within one month of the filing deadline. They must keep this report for at least 5 years after they stop working with the company.
Do you have to give up the BVI offshore
Despite the amendments, the BVI is still an attractive offshore location. These perks still remain relevant:
- Favorable tax conditions for doing business. There is no income tax, corporate tax, capital gains tax, wealth tax, etc.
- No annual meeting of shareholders can be held.
- Any person can be a director, shareholder, or secretary, regardless of their citizenship.
- To open a company in the BVI in 2023, you must to register a unique name in the Registry of the BVI, open a bank account, register with the Social Security Fund, and develop the Charter.
The only difference is that the company must now carefully fill out documents, submit reports to its registered agent on time, and pay annual fees.
How to open a business in the BVI
Contact IT-OFFSHORE to open an offshore company in the BVI in 2023.