BVI Entities: Annual Financial Return Required

The Annual Financial Return format that must be filed annually with a BVI company’s Registered Agent has now been finalised by the BVI Financial Services Commission (beginning in 2024 or later, as stated below).

What format does a financial return take?

As anticipated, the Annual Financial Return comprises an introductory income statement and balance sheet (see the proforma in this client briefing). Take note of the following as well:

• There are no defined accounting rules or guidelines that must be followed.
• Any significant currency may be chosen for the Annual Financial Return, even if USD will be the default.
• An audit of the Annual Financial Return is optional.

What is expected of you?

Within nine months of the business’s fiscal year-end, you must submit an annual financial return for each BVI company we manage on your behalf, using Ocorian as the Registered Agent. The first financial return must be prepared for financial periods beginning on January 1, 2023, or later. After that, financial returns must be submitted every year. For your reference, kindly refer to the following examples of first filing dates depending on different financial year ends:

If your company’s financial period does not fit within the above range, kindly make the appropriate calculations using the above range as a reference.

Which businesses are not required to file this form?

The following businesses are excused from filing their annual financial return with their registered agent:

• A company listed on a recognised stock exchange is a listed company.
• A business that is subject to BVI financial services regulations and submits financial statements to the BVI Financial Services
• Commission in compliance with those regulations’ prerequisites.
• A company in liquidation, with the caveat that this exemption does not apply to a previous year’s financial year end that has already concluded before the start of the liquidation and that the annual financial return must still be filed with the BVI Registered Agent within the applicable period.
• A company that files its annual tax return to the BVI Inland Revenue Department along with the company’s financial statements (this is only applicable to domestic companies).

Who is going to get your money back?

Details of the Annual Financial Return will not be made public and will not be submitted to the Regulator.

What occurs if one does not file a financial return?

If Ocorian, acting as your registered agent, fails to receive the Annual Financial Return within the allotted 30-day period, the BVI Regulator may take additional action.