What are the Reporting and Compliance requirements for BVI Offshore Companies?

The British Virgin Islands (BVI) tax authority does not impose strict annual reporting requirements until and unless incorporated locally. Financial statements or company accounts are optional to be prepared. The companies should maintain records and accounts in the local registered office. There is no requirement for annual filing or financial reporting. However, companies are required to submit information to local registered agents every year.

The BVI Companies Act requires all BVI companies to file an Annual Financial return to the registered local agent. It’s a straightforward report they must submit; it’s a one-page report consisting of an Income statement and a Balance sheet. The companies need to maintain annual accounting records. The register of Directors and Shareholders needs to be updated regularly as per the last amendment.
FATCA is a tool to fight tax evasion and ensure adherence to tax rules. FATCA was introduced to identify and prevent tax avoidance by US nationals. As per the FATCA, all financial institutions must keep the US Tax Department informed of any attempt made by any US citizen to evade Tax. In this context, the BVI Tax Authority notified all financial institutions that obtaining the US Taxpayer Identification Number (TIN) is mandatory for all reportable accounts with FATCA reporting.

The following information details are needs to be reported under FATCA-

Account Information

Taxpayer Identification Number (TIN)

Country of Residence

Signatory Authority

Assets

As business owners or entrepreneurs, we should be aware of different compliance and reporting requirements and should research how to start an offshore business in the BVI. This would help the business owners in the long run, and their company would be compliant with the regulations.