The British Virgin Islands (“BVI”) enacted a new legislation through which it requires the establishment of relevant and adequate ‘economic substance’ for BVI companies and limited partnerships that are ‘resident’ in the BVI and carry on ‘relevant activity’.
Both resident and non-resident legal entities will need to make certain actions and will have annual reporting obligations in order to satisfy these new requirements.
You are prompted to read our Information Sheet on this new important development by clicking here.
This is in response to the requirements of the EU Code of Conduct Group and BVI’s own commitment to tax transparency and compliance with relevant international guidelines. It is further noted that other offshore jurisdictions like the Cayman Islands, Bermuda, Guernsey, Jersey, Isle of Man, Seychelles, Mauritius and Bahamas have also introduced similar legislations and more are expected to follow.