British Virgin Islands Code of Economic Substance Turns Into Rules

The British Virgin Islands published a draft Code of Economic Substance in August. However, the document required revision, therefore, the authorities of the jurisdiction decided to convert it into the Rules with comments. The ability to add comments to regulatory documents of this kind is provided for in Section 17 of the Economic Substance Law of the British territory.

According to the BVI government, the Rules will differ minimally from the previously published Code. The structure of the document will be changed and some points with explanations will be added. Now the authorities are holding consultations on the addition of the Rules, and the consideration of the final version will tentatively take place on September 30.

Earlier, the European Union put forward a series of claims against the crowned territories of Great Britain, including Jersey, Guernsey, and the British Virgin Islands. The Eurozone government is concerned about the non-transparency of the activities of companies registered in these jurisdictions, as well as the impossibility of establishing the ultimate beneficiary. Thus, legal entities can be used for money laundering, preparing terrorist acts and other illegal activities.

Our company Law&Trust offers its services to individuals and legal entities who wish to open a company or branch in the British Virgin Islands. We know about all the features of registration and conducting activities in this territory. Law&Trust specialists will advise on business issues, help register a company and provide related services, such as opening a bank account in the jurisdiction, assigning a legal address, etc.