New BVI Requirement to Produce an Annual Return (AR) Each Year
As the nature of business operations continues to change, keeping up with the latest regulations is one thing that every company must. In the British Virgin Islands (BVI), a new mandate has emerged that demands the attention of all BVI companies: BVI annual return (AR) requirement.
The amendments were effective as of 1st of January 2023. The most important change that is needed is that every British Virgin Islands (BVI) registered company must present the annual financial returns to their registered agent within nine months from the end of each financial year.
The company registered here by law may be fined if the annual financial report is not submitted on time. If non-compliance with the rules persists, the company will be dissolved by the BVI Registrar of Companies.
This article gives outlines the new annual return filing requirements for BVI companies, such as deadlines, filing formats and exempted cases.
What you’ll learn about
The Latest Mandate: Understanding the Importance of the Annual Return
To maintain a thriving business in the BVI, it’s imperative to stay up-to-date with the latest regulatory changes. The annual return (AR) is a significant part of these changes. It serves as a document that outlines a company’s financial activities, ensuring transparency and accountability. Staying compliant with this mandate is not just about following the law; it’s about demonstrating your commitment to ethical business practices and good governance.
The annual return is a straightforward document that includes financial information concerning your BVI Company. This will include the name of your company, its registered address, directors and shareholders as well as the balance sheet and income statement.
For this annual return makes sure that the BVI companies comply with the law. It also communicates your company’s financial position to potential investors and creditors.
The Significance of the Annual Return
The annual return is not just a legal necessity; it shows how healthy your company’s financial position really is. This demonstrates your dedication to financial transparency, a fact that can positively influence the view of investors, partners, and stakeholders towards you. Although it might seem just like a mere administrative requirement, its importance in keeping your business free from unethical practices cannot be ignored. Explore deeper insights in our newest article, exploring the significant impact of non-compliance on your esteemed BVI company.
The BVI annual return is a yearly account filing that every BVI-registered company (with few of the exceptions) has to submit to its registered agent.
Even before the Companies Act of BVI was amended, BVI-registered companies were already required to retain accounting records and files as supporting documents showing the history of their financial transactions and status.
BVI companies that must file an annual return
Every business in the BVI is obligated to submit an annual return to the registered agent, but there are cases where this rule does not apply. A BVI-registered company doesn’t need to file an annual return if it satisfies any of the criteria outlined below:
- It is listed on the stock exchange.
- The trust is regulated under the BVI financial services legislation and provides the BVI Financial Services Commission (FSC) with financial statements pursuant to requirements of that financial services legislation.
- These documents are submitted to the BVI Inland Revenue Department for their financial statements and annual tax return.
- It is being liquidated on a condition that this exemption will not apply if the annual return has to be paid before the liquidation process has started.
Format of Filing BVI Annual Return
BVI FSC has devised a format for the annual return and it must be used and there is a simple balance sheet along with profit and loss statement. The audit of the financial statistics is not obligatory, and the Annual Return will not be a public source of information. Moreover, the registered agent of a BVI company is not obligated to submit the returns to any regulatory body of the BVI unless written instructions are received.
Each agent will have their own systems, and companies will be expected to inquire on this matter when performing due diligence on registered agents. FastLane specializes in preparing annual returns and accounting for BVI companies. We make sure that the format of the BVI FSC is complied with, including the preparation of the balance sheets and profit-and-loss statements.
The task of the registered agent is to notify the BVI Registry of Corporate Affairs that certain entities are in default of submitting their annual returns within 30 days after the company has filed its returns.
BVI Annual Return Deadline for Filing.
BVI entities will have to prepare and file their annual returns with their agent within nine months after their financial year-end. An illustration would be a company with a financial year starting on the first of January 2023 and ending on the 31st of December 2023 that must submit its annual return by the 30th of September 2024. The corporation may file its return any time between 01 January 2024 up to 30 September 2024, and should do so as soon as possible to reduce non-compliance risks. It must submit its return for all years after the first one before the deadline of 30th September of each year.
A BVI company’s annual return refers to the information regarding its finances and operations. If the financial year of the company does not coincide with the calendar year, the deadline for submitting the annual return will differ based on the financial year-end of the company. See the scenario below:
- If the financial year of a BVI company that is registered is from 1 May 2023 to 30 April 2024, the company must submit an annual return for the period between 1 May 2024 and 31 January 2025. The organization should file the subsequent year’s accounts before 31 January of each year.
- In the event that a BVI-registered company’s financial year is from 1 July 2023 to 30 June 2024, it will have to file its first annual return for the period ending 30 June 2024, the period from 1 July 2024 to 31 March 2025. The business is to file its reports for each and every subsequent year before 31 March.
Complying with the annual return requirement can be complex, especially for those unfamiliar with BVI’s financial regulations. The details regarding financial reporting and accuracy may seem complex. That is where the role of FastLane comes into play. With our specialized skill in BVI Annual Returns, we take the stress out of it for you.
| Financial Year Period | First Annual Return Filing Period | Subsequent Annual Return Filing Deadline |
| May 1, 2023 – April 30, 2024 | May 1, 2024 – January 31, 2025 | Before January 31 each year |
| July 1, 2023 – June 30, 2024 | July 1, 2024 – March 31, 2025 | Before March 31 each year |
Why Choose FastLane for Your BVI Annual Return
FastLane is your reliable partner in compliance and success to meeting the BVI annual return requirement. We know BVI’s financial regulations are some of the hardest to deal with and our team is expert at it. FastLane allows you to concentrate on what really counts – growing your business. Leave the complications for our experienced team, and be ready to develop your business.