BVI Annual Financial Return & Renewal Fees Amendment

The BVI Business Companies (Amendment) Act, 2022 introduced a new requirement for BVI companies to prepare and file an annual financial return with their Registered Agent containing certain prescribed financial information.

The format of the annual return has been agreed and is set out in the BVI Business Companies (Financial Return) Order, 2023. As anticipated, the annual return consists of a simple income statement and balance sheet. There is no requirement to use any particular accounting standards and although the default currency will be US$, any major currency may be used.

When must the annual return be filed?

The annual return becomes due at the end of the fiscal or financial year and must be filed each year with the Registered Agent of the BVI company within 9 months of the year end.

The deadlines for common financial year ends are set out below.

*the annual return for a company with a year end of 31st December 2023 will become due for filing between 1st January 2024 and 30th September 2024. Therefore, if the company goes into liquidation on 3rd March 2024,the annual return for 2023 must still be filed.

Who will have access to the annual return?

The annual return will not be accessible to the public, however, the Registered Agent must provide a copy to the BVI Financial Services Commission (FSC) or other competent authority, such as the International Tax Authority, upon request. The Registered Agent must retain the annual return for a period of at least 5 years from the date it ceases to act in that capacity.

What are the consequences of failing to file an annual return?

Where a company fails to file the annual return within the specified period, the Registered Agent is required to notify the BVI Registrar of Companies within 30 days and the company is liable to the following penalties:

• for the first month or part thereof - US$300; and
• for each subsequent month or part thereof - US$200 up to a maximum of US$5,000

A company which is liable to the maximum penalty and has not filed its annual return is at risk of strike off by the Registrar of Companies.

Failure to comply with its reporting and record keeping obligations is an offence resulting in a fine of US$3,000 upon conviction.

Amendment to Annual Renewal Fees for 2024

In light of the additional reporting, monitoring and record keeping obligations a fee of £200 will be added to the annual renewal invoices for all BVI registered companies with effect from 1st January 2024.

We also reserve the right to charge an additional fee for handling late or overdue submissions to include any further follow-ups and monitoring or notifications to our BVI Agents or Registrar of Corporate Affairs.

Kindly contact your Company Manager if you require any further information or email us at info@fid.gi