Effective January 1st, 2023, the BVI Business Companies Act was amended to introduce a requirement for business companies to file annual returns/financial statements annually.
The following companies are exempt from the requirement to file annual return:
- Publicly listed companies;
- Entities that are regulated by BVI FSC and are required to provide financial statements;
- Entities that already submit annual return to BVI Inland Revenue; and
- Entities that commence liquidation before the annual returns filing date becomes due.
The standard financial year in the BC Act is January to December, but the company can select a different financial year (which will run into 2025 in some cases). It is our recommendation that if the company intends to change its financial year, that it be changed to the renewal year of the company i.e. May to April with filing coming due from May the following year or November to October, with filing coming due
from November the following year. This will allow the Registry renewal and the annual returns filing to become due at the same time each year and reduce the multiple interactions with the end client. If the company decides to change the financial period a resolution will be required to approve the change.
The filing window for Annual Returns is within 9 months after the end of the financial year/financial period. There are hefty fines associated with non-filing both for the company and for us as the Registered Agent.
AUDITED FINANCIALS
Audited financial statement is not a requirement. The Annual Return form can be completed by the company.
ANNUAL RETURN FORM AND FEES
Fillable Annual return forms will be supplied in PDF and Excel for your use.
Effective January 1st, 2024, the annual returns filing must be up to date before we can issue a Certificate of Incumbency. The Certificate of Incumbency will be issued once the 9 months filing window has not closed.
Annual Return fees should be paid with the renewal invoice to avoid any delays in filing, but if the invoice is requested separately, the payment is required at the time of submitting the Annual Return form for filing.
There is no requirement for the Annual Return to be signed but we recommend that it be signed by one of the directors for record purposes.
PENALTIES
Where a company fails to file its annual return within the 9 months after the financial period has ended, the Registered Agent is required to inform the Registry and the following penalties will apply:
(a) For the first month or part thereof that the annual return is overdue a penalty of $300 will apply; and
(b) For each month or part thereof after the first annual return is overdue a penalty of $200 shall apply up to a maximum of $5,000.
If the Registered Agent fails to inform the Registry that a companies has exceeded its filing period, a penalty of $3,000 per company will be imposed on the Registered Agent.
Would you like to know more? Then please Contact Us:
info@offshorecompaniesinternational.com
DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.
