Our CEO, Vinícius Evangelista, explores the issues and regulations in the British Virgin Islands that can affect the assets and investments of those who have an equity holding in the country.

 

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If you have a holding company in the British Virgin Islands (BVI), your company may be subject to struck off if you do not comply with local obligations, such as non-payment of government and registered agent fees, failure to deliver the Economic Substance Act (ESA) or for not appointing a new registered agent when the company dismisses the current one, for example. Whatever the reason, your BVI business, when struck off, could/should not operate.

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The suspension regime in BVI causes many problems for all those who do not fully understand its implications. In this way, we will explain below how the suspension of a company in BVI works:

 

When a company is struck off, it does not mean that the company is dead, but temporarily inactive. Upon entering this condition, the company will have a period of 7 (seven) years to be reactivated and, only if not, will it be closed.

 

If a company finds itself in this condition, it should not carry out activities such as, for example, selling or acquiring a property or investing in financial products. Carrying out transactions with a struck off company is a violation of the BVI Companies Act and you could be penalized.

 

In order for your BVI company to comply with local obligations and up to date with government taxes, it is important to manage a specialized office. You may be in default or failing to deliver ancillary obligations and not be aware of it. Placing your company in an struck off situation can put all the assets under management of the company at risk.

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My company is in struck off. How can I restore?

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Reactivating a company in BVI is not cheap. Suppose your BVI business owns real estate in the US and Brazil and some investments. However, your accountant or lawyer, forgot to pay the mandatory fees and now your business finds itself in struck off. To restore it, you will be required to pay the reactivation fee to the BVI Corporate Registry, plus six years of government fees, late registered agent fees, estate planning office fees, and other applicable fees and penalties. An invoice of at least US$ 12,000.00 (twelve thousand US dollars) is expected.

 

Some customers come to our office and ask us: What if I don't pay? Your company's assets are probably worth more than US$12,000.00 (twelve thousand dollars), so you should pay. Failing to make payment, if the company is dissolved for being inactive for more than 7 years, any assets may become the property of the government of the British Virgin Islands (BVI). Furthermore, to get the property back, you would have to file a lawsuit in the BVI court to restore the company and the costs will be at least three times as much.

 

 

 

E&G services in BVI.

 

E&G offers the incorporation and maintenance of companies based in BVI. All our clients are served in a personalized way, through a multidisciplinary team, which allows us to deliver that not only corporate matters, but also tax and inheritance matters.

 

Our consultants are constantly alerting BVI clients about the importance of keeping the company active and free from issues (Good Standing). Our team has experience in managing companies in the country and the maintenance cost can be paid in reais, in up to 12 installments on the credit card.

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If you would like to receive information or a quote for the administration and/or reactivation of your company in BVI, please contact us!

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