The life of a BVI International Business Company starts upon its incorporation. The Company is registered with the BVI Authorties but after incorporation it has certain responsibilities which you need to be aware of. In this article, we touch upon two of such requirements, Tax & Accounting Requirements.
Tax Requirements:
BVI is a tax neutral jurisdiction, which means that no taxes are paid there. This in practice results in the fact that the BVI International Business Company will not need to pay any taxes in the BVI. However, you need to consult tax advisors in your country of tax residence, to assess whether you will be taxed if and when receiving income from a BVI Business Company.
Accounting Requirements:
In terms of accounting requirements, we have analysed such in many articles in the past. BVI Business Companies, have two main accounting related requirements. That is that they need to hold Financial Records and prepare a BVI Annual Financial Return.
Financial Records: According the BVI Business Companies Act, BVI Companies need to keep financial records to support their transactions for a period of up to 5 years from the date of such transaction, at an address known by the Registered Agent of the Company. No filings are needed under this requirement.
Annual Returns: The Annual Return requirement was introduced from 1 January 2023, and it requires BVI Business Companies to submit the Annual Financial Return Template to their Registered Agent 9 months after the end of their year end. For example, as for most companies the year end is 31 Dec, they have until 30 Sep 2024 to submit their first annual return. The Return template consists of a simple income statement and balance sheet. You can read more information in our article here and for more articles on the matter you can visit our blog.
How we can assist:
Our specialized teams can assist with preparation of accounting records and annual returns, as we have qualified accountants in our teams who have studied and are well aware of the above requirements. You can contact us at contact@bviaccountants.com for more information on how we can assist you.
Disclaimer:
The above article is for reference only and is not meant to be exhaustive. Please always consult a professional before making decisions on such matters.
