Companies established in the BVI will have until 30 September 2024 to submit the Annual Financial Statement for the financial year ended 31 December 2023. For companies whose financial year ended on another date, the reference period will be nine months after the end of the financial year.

This requirement is the result of new regulations introduced as of 1 January 2023, specifically Section 98A (1) of the BVI Business Company Act, which obliges companies to provide a simplified Balance Sheet and Profit and Loss Account to the registered agent, with variations such as audited financial statements or management reports being rejected. It is important to emphasise that the information presented will not be made available to the general public.

In order to fully comply with the requirements, companies must provide the registered agent with up-to-date and correct financial information in a standardised format before the deadline (30 September 2024 or nine (9) months after the end of the financial year). This agent must keep the information confidential, disclosing it only when requested by competent authorities.

The requirement applies to most BVI companies, with the exception of entities listed on recognised stock exchanges, those already regulated by the Financial Services Commission (FSC), or those that file tax and financial returns directly with the BVI tax authorities.

Failure to comply within the deadline may result in the imposition of penalties, including fines ranging from US$300 in the first month to a maximum of US$5,000, and persistent non-compliance may lead to the cancellation of the company’s registration.

Manucci Advogados is available for any further information.

Authors: Thiago Xavier e Edson Martins