BVI’s Business Companies Act Reform

BVI’s Business Companies Act Reform

Starting January 15, 2016 the Law that modified various aspects of the BVI Business Companies Act 2004 entered into force. The main amendment introduced by said law is summarized as follows:

  • Creation of a Private Registry of Directors
    Starting April 1st, 2016, BVI’s companies must declare who their Directors are before the Companies Registry. Unless the company authorizes otherwise, said registry will not be available to the general public. Without prejudice thereof, said access may be granted by judicial order or written request.
    As for the terms to comply with said registration, the existing companies have until March 31st 2017; while the new companies will have a term of 21 days to register the designation of Directors.

The companies must keep their records updated.

  • Accounting and record keeping
    Record keeping of documentation has been addressed again. The responsible holder of such documentation should have readily available the corporate documentation as well as have the information to demonstrate and explain the company’s transactions and determine their financial situation with reasonable precision at any time.
    The location of the records must be informed in writing together with the name and contact of the person in charge. This person can be the Registered Agent or any other person.
    At any time, the competent authorities may request the Registered Agent to provide this information. Failure to comply can translate into fines of up to US$ 50,000.

Likewise, the inclusion of the arbitration clause has been allowed in the Articles of Association of the companies and sets the obligation of the Registered Agents to act according to the resolutions of the Company’s Board, among other changes introduced by said reform.

The referred reform has introduced amendments that in general have been well received by the financial market, reaffirming BVI as one of the leading jurisdictions in this area.

Image: Unsplash

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