BVI Annual Return Update

Changes Effective from 1 January 2024

On January 1, 2023, it became mandatory for British Virgin Islands Business Companies (BVIBC’s) to file an Annual Return.

The enabling legislation was the BVI Business Companies (Amendment) Act, 2023 (The BC Act) and it was further codified in the BVI Business Companies Financial Return Order

What is the BVI Annual Return?

The BVI Annual Return is a report comprising a simple Income Statement and Balance Sheet. It provides a snapshot of a company's financial position, detailing revenues, expenses, gains, losses, assets, liabilities, and shareholders' equity for a specific period. The return does not need to be audited. Please review the sample Annual Return included at the end of this circular.

Effective Date

From the effective date of January 1, 2024, BVIBC’s with a financial year end of December 31, 2023, were required to submit their first Annual Return by September 30, 2024.

Filing Deadline Dates

The general rule is that the deadline date for filing the Annual Return is nine months from the BVIBC’s chosen year end. So as an example, if the year-end is March 31, 2024, the deadline date is December 31, 2024 and for a year-end of July 31, 2024 the deadline date is April 30, 2025.

How CCP Financial Consultants Limited can assist

Through our sister company Crowe (BVI) Limited which provides Audit and Accountancy Services, we can provide valuable assistance in the preparation of annual returns, maintenance of your Accounting Records, and Financial Statement preparation. Crowe provides efficient and cost effective services to ensure compliance with BVI Annual Return requirements. For further information please contact us using the information in the contact details section below.

How to Submit the BVI Annual Return

Once completed, the Annual Return must be filed with the Registered Agent of the company. There is no requirement for the Registered Agent to further file the return with the Registrar of Companies. However, after a grace period of one month the Registered Agent has a statutory obligation to inform the Registrar of non-compliant companies that have not submitted a return.

Who Determines the Financial Year

The default is the December 31, calendar year end, For any other chosen year end the Board of Directors should pass a resolution stating the financial year end and provide such resolution to the Registered Agent.

Penalties for Non-Compliance

Financial penalties are imposed on a BVIBC for failing to file the annual return as follows:
a) for the first month or part thereof after the filing of the annual return was due, the penalty shall be US$300; and b) for each subsequent month or part thereof after the first month the penalty shall be US$200, up to a maximum of US$5,000 after which the BVIBC may be struck off the Register.

Are Annual Returns Made Public?

Annual returns are private and confidential and remain with the Registered Agent. They do not enter the public domain. However, there are legislative provisions under which competent authorities, such as the BVI Financial Services Commission, the International Tax Authority or the Attorney General may request a copy and the Registered Agent is obliged to accede to valid and proper requests when made.

Exemptions

There are a few exemptions from filing an Annual Return that are allowed under section 98A(5) of the Act which include:

a BVIBC listed on a stock exchange a BVIBC regulated by the BVI Financial Services Commission and such as is mandated to submit annual Financial Statement to the commission. a BVIBC that files its annual tax return including financial statements with the BVI Inland Revenue Department. a BVIBC in liquidation. It should be noted however, that this does not apply where the annual return became due before liquidation commenced.

Note also that the Annual Return requirement applies to BVIBC’s only. In other words,it does not apply to Limited Partnerships and other entity types in the BVI.

Approved Currencies

BVIBC’s are allowed to use any currency for the Annual Return. The template below displays US$ but this is not mandatory

Accounting Standards and Audit

There are no prescribed Accounting Standards that need to be followed for preparing the Annual Return, but International Financial Reporting Standards are commonly used and accepted.

There is no requirement whatsoever that the Annual Return be audited.

Important New Obligation

The Annual Return is a new but very important obligation for a BVIBC and preparation for it should not be taken lightly. It requires a company to properly record its transactions and maintain proper files so the relevant information can be retrieved, analyzed and processed to generate the required Annual Return.

If you are unable to carry out the above mentioned functions or if you prefer not to spend your valuable time on such mundane tasks we can provide assistance to enable you to fulfill your obligations and ensure full compliance with this new mandatory requirement in the British Virgin Islands.

Contact Details

Glenn Harrigan

Director
Office: 284-494-6777
Cell: 284-441-2494
Email: gharrigan@ccpbvi.com

Zirimavo Dyett

Corporate Administrator
Office: 284-494-6777
Email: zdyett@ccpbvi.com

General Inquiries

Office: 284-494-6777
Email: mail@ccpbvi.com

Annual Return Template

Name of Company:
Financial Year Ending:

BALANCE SHEET / STATEMENT OF FINANCIAL POSITION

ASSETS	US$
Cash and Cash Equivalents Investments and Other Financial Assets Tangible Fixed Assets Intangible Assets Other Assets
TOTAL ASSETS	$-

LIABILITIES AND SHAREHOLDERS EQUITY

Accounts Payable Long-Term Debts Other Liabilities TOTAL LIABILITIES
TOTAL SHAREHOLDERS EQUITY	$ - $ - $ -
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

Name of Company:
Financial Year Ending:

INCOME STATEMENT

	US$
Revenue Cost of Sales
GROSS PROFIT	$ -

EXPENSES

Operating Expenses Other Expenses Income Tax Expense
TOTAL EXPENSES	$ -

NET INCOME	$ -

Written by Glenn Harringon