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ECONOMIC SUBSTANCE

Economic substance legislation in the British Virgin Islands requires certain entities that are incorporated or registered in the BVI, and which conduct one or more of a setlist of relevant activities, to comply with local substance requirements known as ‘economic substance’.
There are nine specifically defined activities that are considered relevant activities and relevant entities must comply with the economic substance rules in the BVI.

The nine business sectors are:

  • Banking
  • Fund management
  • Insurance
  • Finance and leasing
  • Headquarters
  • Shipping
  • Holding company
  • Intellectual property
  • Distribution and service centres

Why Richmond Advisory?

Classification and compliance

  • In order to advise you whether or not your entity is required to comply with economic substance requirements (if your company falls “in” or “out of scope” of the legislation), please contact our expert team and we will perform a full review of your company to determine and advise on all aspects of compliance with substance legislation and, where appropriate, what actions must be taken.

Reporting obligations

  • In addition to understanding their compliance obligations, entities should ensure that they are prepared to meet their reporting obligations. Every company and limited partnership registered in the BVI must file an economic substance return with the International Tax Authority via its Registered Agent within six months of the end of each compliance period. Our team of experts are on hand to provide guidance and to assist with the preparation of the return.

Establishing substance in the BVI

  • For clients that do need to establish and demonstrate substance in the BVI, we provide bespoke and integrated legal and administrative substance solutions. We also provide a full suite of governance, resident director and accounting services in the BVI to ensure compliance.

Single entity

Low fixed cost

$ 450
  • Based on the company conducting no relevant activity at the time of filing the return. If this is not the case, please contact us for a tailored low fixed quote.
  • We offer discounted rates for bulk engagements.
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