When should arrange for the annual renewal of BVI company after it is incorporated?

BVI company incorporated in or before June should be renewed before 31 May each year to ensure its legal status and recognition.Whereas BVI company incorporated in July to December can be renewed before 30/ Nov each yearRead more: British Virgin Islands offshore company formation What happens if I don't pay the annual renewal fees?

Is there any other compliance rule for BVI company?

Basically, except for the annual renewal of the BVI company, the company is not required to submit any other form of annual return or financial statements to the BVI government, thus, this has greatly increase the simplicity of managing a BVI company.

Does the company have to file accounts or a financial statement?

There is no requirement to file accounts or a financial statement

Is the company taxed on profit?

A BVI company is exempted from all local taxes

Does the company have to maintain books and records in the BVI?

The company does not have to keep records in the BVI. If the company chooses to keep records they can be kept anywhere in the World.

How do I pay an annual renewal fee for my registered BVI Company?

Renewing your BVI company is an important step to maintain your operation. Renew your registered BVI company on time is necessary as it is not only to maintain your company’s Good Standing but also to make sure to comply with local regulations.

According to BVI regulations, business owners need to pay annual Company Renewal fee starting from the second year to BVI Government and depend on the period of company incorporation date, the company renewal date due at 2 different renewal periods:

The fee is due before 31st May, for all companies incorporated between the 1st of January and 30th of June;
The fee is due before 30th November, for all companies incorporated between the 1st of July and 31st of December;

The owners cannot pay directly the annual renewal fee to the Government, the Government will only accept the fee through a Registered Agent according to the BVI Business Companies Act 2004.

If you cannot pay the fee on time, your BVI company will lose its status of Good Standing and can be strike-off from the Registry for non-payment of fee. Striking-off a company means your BVI company is unable to continue trade or enter new commercial agreements, and its directors, shareholders, and managers are by law precluded from any operations or transactions with the assets of the company until the company is restored in Good Standing.

Moreover, late penalties will be applied for non-payment of an annual renewal fee.

A 10% penalty fee is applied if the payment is up to 2 months late.
A 50% penalty fee is applied if the payment is over 2 months late.

Business owners can restore a company after it has been struck off, but owners need to pay substantial fees to the Government including all past-due renewal fees depending on the number of days overdue after strike-off and penalties fee.

Therefore, paying in full and on time your renewal fee is essential for your registered BVI company. Paying renewal fees after the expiration date will cause many problems that can affect your operation.

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