BVI Annual Return Penalties

Since the introduction of the BVI Business Companies (Financial Return) Order, 2023, all BVI-registered companies are now required to file an Annual Return with their Registered Agent. This new regulation, which came into effect on January 1, 2023, applies to most companies, except for those exempt, such as listed companies, companies under BVI financial services regulation, or those in liquidation.

The Annual Return is a straightforward submission, consisting of a basic balance sheet and income statement, with no audit requirement. However, failure to comply with the filing requirements can lead to significant penalties.

Penalties for Non-Compliance

If a company fails to file its Annual Return by the deadline (nine months after the financial year-end), the Registered Agent must notify the BVI Registrar of Corporate Affairs within 30 days of the missed deadline. The following penalties apply:

• Initial Fine: A penalty of USD 300 will be imposed for the first month of non-compliance.
• Ongoing Penalties: After the first month, an additional USD 200 is charged for each subsequent month of non-compliance.
• Maximum Penalty: The total penalty can accumulate up to a maximum of USD 5,000.
• Striking Off: If the company continues to ignore its obligations, the Registrar has the authority to strike the company off the register. This could severely affect the company’s operations, including losing its good standing status.

Loss of Good Standing

Non-compliant companies will also lose their Certificate of Good Standing, which can impact their ability to conduct business internationally and engage with financial institutions. Additionally, the loss of good standing may lead to complications in legal matters, such as contract negotiations or bank dealings.

Avoiding Penalties

To avoid penalties, BVI companies must ensure that their Annual Return is prepared and submitted on time. As the first deadline for companies with a financial year ending on December 31, 2023, approaches on September 30, 2024, it’s important to act early. Contact us today if you need assistance to complete your Annual Return.

If you are unsure about the process or need assistance, it’s advisable to seek professional help from a BVI-registered accounting firm. Specialists can ensure that your company remains compliant, avoiding costly penalties and disruptions to business operations.

Update:

On 26 September 2024 the BVI Financial Services Commission issued the following announcement  stating that until further notice no penalties will apply for Companies which delay the submission of their 2023 Annual Return. This is subject to change, therefore please always ask your Registered Agent or BVI Accountant on what applies to avoid any penalties.

More Material on the BVI Annual Return requirement from Asterisk BVI:

For more detailed guidance, you can visit our dedicated resources below or annualreturn.vg or contact us directly.

• BVI Annual Return – Everything You Need To Know – 2024 Update
• BVI Annual Return Submissions Commence: January 1, 2024 Kickoff
• A copy of the actual return template to be submitted
• Understanding the contents and form of the BVI Annual Return Template
• 6 Reasons why the BVI Annual Return requirement shouldn’t stress you out 
• BVI Annual Returns: Exemptions and Privacy
• BVI Annual Return Unveiled: Your Comprehensive Q&A Guide
• 8 things to know about BVI Annual Financial Returns
• annualreturn.vg – our specialized website for the annual return requirement prepared by Asterisk BVI.