News: The end of BVI as an offshore is possible due to the new rules of substance

On April 24, 2019, the governing bodies of the British Virgin Islands published a draft Code “On the Economic Presence (Substance)” for public discussion.

This is the first attempt of the offshore zone to seriously reconsider its conditions for allowing businesses to operate in the territory of their jurisdiction after they are blacklisted by the EU, the USA and a number of large international banks. According to the new proposal, some rules of operation will be revised at the BVI.

Thus, investment funds are excluded from the requirements of economic suitability, as long as they do not conduct another type of activity that is qualified for the purposes of suitability. Of particular interest is the preliminary report requirements for holding companies, and companies exclusive holders of participation in the capital of other companies. Also, the new rules will apply to those companies that provide individual loans. Companies that are considered debt holders are excluded from the requirements as financial or leasing companies

The final summary of the document states that the final text of the draft with more detailed terms will appear no later than May 10. Now the proposals are open, there is a public discussion of the issue.

Law and Trust International provide an opportunity to register a company in the British Virgin Islands. To learn about the cost of registration and its features, please contact our lawyers.