BVI Dominates by Volume of New Offshore Company Incorporations

According to a report from Appleby Global, one of the world’s largest providers of offshore legal, fiduciary and administration services. the British Virgin Islands jurisdiction “continues to dominate” by the volume of new offshore company registrations, with a six-fold lead over the Cayman Islands, which is the nearest comparator of the BVI.

The Group’s latest On the Register Report is devoted to the analysis of company incorporations in the British Virgin Islands, Cayman Islands, Bermuda, the Crown Dependencies, Mauritius and Seychelles, and how activity in these offshore jurisdictions compares to financial centres such as the UK and Hong Kong. 

Appleby stated in the release that the number of new offshore company registrations decreased both in the BVI and the Cayman Islands in the second half of 2012, with a 12% drop to 29,225 new company registrations in the British Virgin Islands, and 13% drop to 4,176 new registrations in the Cayman Islands. Appleby reported an overall decrease of 3.6% in company incorporation activity in the major offshore markets in the second half of 2012, indicating the impact of uncertain global economic conditions on the majority of the offshore markets.

By words of Farah Ballands, the partner and global head of fiduciary & administration services at Appleby, “There are signs that 2013 will be a watershed year in terms of seeing a universal return to pre-2009 activity levels across the offshore jurisdictions.”

Brian Obvi,
Offshore Analyst

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BVI FSC Issued 29th Volume of Quarterly Statistical Bulletin

Twenty-ninth volume of Quarterly Statistical Bulletin was issued by the British Virgin Islands Financial Services Commission, providing statistics and information on the financial services activities in the territory in the fourth quarter of 2012. According to the statistics of the Registry of Corporate Affairs, 14,783 new companies were incorporated in BVI during this period, as compared to 16,251 companies in the third quarter of 2012, and 12,974 in the fourth quarter of 2011. Cumulative number of companies newly registered in the BVI was 459,005 as at 31 December 2012. In the fourth quarter of 2012, 36 Limited Partnerships and 21 Private Trust Companies were registered.

According to Banking and Fiduciary services statistics, total assets of BVI-registered commercial banks in the fourth quarter of 2012 were $2,472,3mln; deposits were $1,827mln; total shareholders’ equity $400,7mln; net interest income was $44,3mln.

In Investment Business sector, 6 new Investment Business Licences were granted in the reported period. In Mutual Funds sector, 27 new licences were issued, of which 19 are professional and 8 are private licences. The Bulletin includes year-by-year statistics, from the fourth quarter of 2009 to the fourth quarter of 2012, showing the dynamics of how cumulative number of Active Mutual Funds was changing in this period. From Q4 2009 to Q4 2012, the number of Active Public Funds decreased from 216 to 151; the number of private funds decreased from 816 to 577; and the number of professional funds fell from 1,905 to 1,590.
There were 23 Insolvency Practitioners in the British Virgin Islands by the end of the fourth quarter of 2012.

Also, in the fourth quarter of 2012 there were 55 Enforcement Matters in the sector of Legal and Enforcement and International Co-operation. Ongoing Supervision Matters Referred to LSC included 103 matters in Banking and Fiduciary Services, 259 in Investment Business, 139 in Insurance and 10 in Insolvency Services.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Statistical Bulletin for Second Quarter of 2012

Last week, the British Virgin Islands Financial Services Commission published Quarterly Statistical Bulletin, providing information and analysis of financial services activities in the BVI jurisdiction. The newly issued Volume 27 includes statistics for the second quarter of 2012.

According to the information of the Registry of Corporate Affairs, in the second quarter of the year 15,200 International Business Companies and 15 limited partnerships were incorporated in the BVI, as compared to 17,865 companies and 18 limited partnerships registered in the first quarter of 2012. Cumulative number of companies incorporated in the BVI as at 30 June 2012 was 447,801, and the number of limited partnerships was 442.

In the Banking and Fiduciary Services sector, one Money Services/Financial Business licence was issued in Q2 2012. The Banking sector statistics for commercial banks showed the following: total assets – $2, 39 million, deposits - $1, 73 million, net income - $11, 6 million, profit margin – 38,57%.

In Investment Business Sector, 10 new Investment Business Licences, 17 professional and 5 private licences for Mutual Funds were granted in the second quarter of the year. Cumulative number of investment business licences as at 30 June 2012 was 532; total number of professional mutual funds was 1621. Cumulative number of active mutual funds was lower in the reported second quarter of 2012, as compared to the same periods of 2011, 2010 and 2009.

In Q2 2012, total number of insolvency practitioners was 24 (25 in Q2 2011, 20 in Q2 2010). According to insurance statistics, one captive insurance licence was granted in this period.

According to Legal and Enforcement and International Cooperation statistics, total number of international cooperation matters in the second quarter of 2012 was 42 (42 in Q1 2012, and 44 in Q2 2011). Among ongoing Supervision Matters reviewed by the Licensing and Supervisory Committee, 110 referred to Banking and Fiduciary Services sector, 446 referred to Investment Business sector, and 60 referred to Insurance sector.

Brian Obvi,
Offshore Analyst

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BVI FSC Publishes Guidance Notes for Compliance Inspectors

The British Virgin Islands Financial Services Commission has published Code of Conduct for Compliance Inspectors, which will serve as a guidance for members of Commission's Compliance Inspection Team while carrying out the inspection duties.

This Code of Conduct establishes basic standards to be maintained by all inspectors while conducting compliance inspections of the Commission's licensees. Also, the Code of Conduct serves as a guide to the Commission's licensees in terms of what they expect of the conduct of inspectors during an inspection process.

According to the published document, the inspectors must comply with the provisions of the Act and other current statutes or statutory provisions which may be applicable to their functions, including the Commission’s Compliance Inspection Procedures Manual and any guidelines issued by the Commission.

The Code of Conduct sets the duties of Compliance Inspectors, which include duty to discharge responsibilities with integrity, duty to maintain proper records, duty to work within the scope of available resources, duty not to attempt to damage the professional reputation of another inspector or of the Commission, and the need to maintain confidentiality. The document sets relationship between inspectors and the inspections coordinator, and establishes the rules applicable in cases of conflicts of interest. The document also covers other issues concerning the conduct of Compliance Inspectors.

Brian Obvi,
Offshore Analyst

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BVI Among Most Popular Offshore Destinations for Czech Businessmen

Czech firm SMART Office & Companies stated that in 2010 there was more than double growth in the interest of Czech entrepreneurs in buying foreign ready-made companies, compared to last year.

It was also said that the most popular countries for offshore companies are British Virgin Islands and Seychelles. The interest of entrepreneurs to the British Virgin Islands has grown by 172% in 2010 as compared to the previous year (87 235 companies), and the interest to Seychelles has grown by 94% (119 231 companies).

The BVI, Seychelles and Cyprus are among offshore jurisdictions where tax system is most advantageous for Czech businessmen.

For next year, Smart Companies expects a growth of interest in traditional offshore tax havens, and in Asian jurisdictions – Hong Kong, Singapore and India.

Brian Obvi,
Offshore Analyst

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BVI FSC Published Twentieth Statistical Bulletin

The BVI Financial Services Commission has published the twentieth volume of Quarterly Statistical Bulletin, comprising financial statistics and analysis for the third quarter of 2010, the period ended at 30 September 2010. According to the statistics of the Registry of Corporate Affairs, publishing information on incorporations and registrations in the BVI jurisdiction, there were 15,946 business companies newly incorporated in the reported period. This is the growth in the number of registered companies, as compared to 12,815 companies registered in the second quarter of 2010, and to 13,368 companies registered in the third quarter of 2009. Cumulative number of companies incorporated in the British Virgin Islands at 30 September 2010 was 456,547.

According to the statistics published by Banking and Fiduciary Services Sector, in the third quarter of 2010 total assets of commercial banks were $2,189 million, loans and advances were $1,440,6 million, net income was $41,1 million.

In investment business sector, in Q3 2010 6 new licences were granted to functionaries (cumulative total number 577). 31 licences were granted to Mutual Funds (cumulative number 2951).

According to Legal and International Cooperation Statistics, there were 32 enforcement matters in the third quarter of 2010 (29 in the second quarter of 2010 and 39 in the third quarter of 2009).

In the third quarter of 2010, there were 464 matters before the Licensing and Supervisory Committee, 94 of them in Banking and Fiduciary Services sector, 293 in Investment Business sector, 75 in Insurance sector and 2 related to Insolvency services.

Brian Obvi,
Offshore Analyst

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The Commission Reminds of Deadline to Submit Applications

The British Virgin Islands Financial Services Commission reminded of approaching deadline to submit applications for money services or financing licence. The transitional period for submitting applications for money services or financing licence ends this week, on 30 September, 2010.

In the press release, the BVI FSC noted that conducting money services or financing business without a licence from 1 October 2010 will be considered an offence. The money services and financing businesses found guilty of this offence will have to pay a fine of US$60,000 for a corporate entity or US$40,000 for an individual, and/or imprisoned for three years.

The Financing and Money Services Act was passed by the House of Assembly on 26 May, 2009, and came into effect on 30 March, 2010.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Statistical Bulletin for the Second Quarter of 2010

The Financial Services Commission issued the nineteenth volume of its Quarterly Statistical Bulletin, providing statistics and analysis on activities in the financial services sector in the jurisdiction in the second quarter of 2010.

According to the Registry of Corporate Affairs, the number of newly incorporated business companies in the second quarter of 2010 was 12,815, compared to 16,596 reported in Q1 2010. However, this is a significant increase compared to the second quarter of 2009, when just 9,871 companies were incorporated. Cumulative number of companies incorporated in the British Virgin Islands as at 30 June, 2010 was 468,306.

Banking and Fiduciary Services statistics in the second quarter of 2010 showed the following aggregate totals for commercial banks: total assets were approximately US$2,529,282,000, net income was US$28,948,000, operating income was US$46,953,000. In Investment Business sector, 52 licenses were granted in the reported period, total number of licensed entities was 2956.

In the sector of Legal and International co-operation, 29 matters were registered that required international co-operation, 23 of them were formal requests asking for the disclosure of non-public information. Total number of enforcement actions before the Enforcement Committee was 13.

In the second quarter 2010, there were 307 matters considered by the Licensing and Supervisory Committee (LSC), 167 of them in the Investment Business sphere, 88 in the sphere of Banking and Fiduciary services, 45 related to Insurance, and 7 to Insolvency services.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Eighteenth Volume of Quarterly Statistical Bulletin

Last week, the eighteenth volume of Statistical Bulletin was issued by the BVI FSC, providing information and statistics on the British Virgin Islands financial sector activities in the first quarter of 2010.

In the three month period ended March 31, 2010, there was an increase in the amount of business companies registered in BVI – 16,596 newly registered entities, compared to 11,931 in the fourth quarter of 2009 and 12,307 in the first quarter of 2009. The number of BVI business company incorporations in this period approached to the statistics reported in 2008, - before the yields of the global economical and financial crisis became so clear. Cumulative number of business companies incorporated in the jurisdiction was 456,226 as at March 31, 2010.

Banking and Fiduciary services statistics showed that total number of currently licensed entities in the first quarter of 2010 was 268. According to financial results of banking sector in the first quarter of 2010, total assets of the banks were $2,469,308,000, and net income was $16,239,000.

In the Investment Business sector, 8 new licences were granted in Q1 2010, their total number as at the end of the period was 578; also, 58 new mutual funds licences were issued.

According to the Legal and International Cooperation statistics for the first quarter of 2010, there were less international cooperation matters compared to the previous periods – 17 formal and 4 informal requests, and 28 enforcement matters. There were 913 matters before the Licensing and Supervisory Committee (LSC), of them 91 for banking and fiduciary services, 786 for investment business, 32 for insurance and 4 insolvency services matters.

Brian Obvi,
Offshore Analyst

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Ralph O'Neal Speaks on Tourism and Financial Sectors of the BVI Economy

In the recent delivery of the 2010 Budget Address in the House of Assembly, BVI Premier Hon. Ralph T. O´Neal talked about the tourism sector and the financial services sector and the results of their work in 2009. As regards the financial services industry, he mentioned several bills that have been brought before the House in the past few months, including the Securities and Investment Business Act, aimed at strengthening regulatory regime of the territory and promoting the status of the British Virgin Islands as a jurisdiction of the choice for doing legitimate business.

He also noted that Government is fully committed to ensuring that the Tax Information Exchange Agreements concluded by the BVI and its OECD partners are implemented effectively, through the efficient operation of the administration system supporting them.

Although the number of new company incorporations in the British Virgin Islands decreased by more than 14,000 in 2009, according to the statistics of the Financial Services Commission, Ralph O'Neal expressed optimism about the overall performance of the BVI economy in 2010. He said that the economy of the British Virgin Islands should experience the improvement in the financial services sector and tourism.

The BVI offshore incorporation figures up to the third quarter of 2009 were down by approximately 32 percent compared to the same period of 2008, but the overall number of active offshore companies registered in the BVI remains in the level of about 400,000.

Concerning the tourism sector of the BVI economy in 2009, the Premier outlined some of the effects of the global economic turmoil on the decrease of many indicators compared to 2008.

Brian Obvi,
Offshore Analyst

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BVI FSC Presented Bearer Share Regime Changes

The immobilization of bearer shares issued under the IBC Act (prior to 1 January, 2005) that came into force on December 31, 2009, was recently presented by the Deputy Managing Director of the BVI Financial Services Commission Mr. Kenneth Baker. As a background for the changes in the bearer shares regime Mr. Baker named the international pressure which was expressed in the reports of international economic and financial organizations, including the OECD and FATF reports and recommendations. He said that the end of BVI IBC's power to issue bearer shares and their immobilization were necessary for the high international reputation of the jurisdiction as the financial and offshore centre.

Several amendments to the BVI legislation acts were done in order to transfer bearer share companies to non-bearer share ones. Among the documents that were amended there are the Financial Services Commission (Amendment) Act, 2004, the BVI Business Companies Act, 2004, International Business Companies (Amendment) Act, 2003, and International Business Companies (Amendment) Act, 2004.

The Financial Services Commission (Amendment) Act, 2004 came into force on 1 July, 2004, and since that date the BVI FSC has been accepting applications for authorized BVI custodians. The amended Act defines rules governing custodians, including the conditions of approval and revocation of approval of custodian's licences, the issue of guidance notes relating to Authorized Custodian's practices and procedures.

Mr. Kenneth Baker in the presentation explained the meaning of disabled bearer share, and the order of disapplication on bearer share transfer. He provided the definitions of recognized and authorized custodians, and the lists of recognized and authorized custodians developed by the BVI FSC.

The presentation can be found on the home page of the British Virgin Islands Financial Services Commission.

Brian Obvi,
Offshore Analyst

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BVI FSC Issued Advisory Warnings on Financial Services Companies

On November 17, 2009, the British Virgin Islands Financial Services Commission published Advisory Warnings concerning two offshore companies. One of the documents issued under Section 4 (1) (l) of the Financial Services Commission Act, 2001 informs the public that the company named Golden Gate Education Ltd., also known as Golden Gate Ltd. and FinancerzWorld, is not licensed to conduct financial services business in or from within the British Virgin islands.

By the second document the BVI FSC warns the public that another company, FX World Online Ltd, is not licensed to carry on financial services business in or from within the territory.

The Commission advises the public to exercise extreme caution in conducting any transactions with FX World Online Ltd. and Golden Gate Education Ltd (also Golden Gate Ltd. and FinancerzWorld). The Advisory Warnings on these companies are the 23rd and 24th documents of this category in the year 2009.

Brian Obvi,
Offshore Analyst

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Britain advices BVI and other tax havens to implement more taxes

On October 29, 2009, an independent review commissioned by the UK Government was issued, led by Michael Foot, former managing director of the UK's Financial Services Authority. The main concern of the report is the analysis of the situation in the offshore financial centres that are British Crown dependencies. These are Guernsey, Isle of Man and Jersey (where the situation is more favorable than in remote jurisdictions), and offshore territories Anguilla, Bermuda, British Virgin Islands, Cayman Islands, Gibraltar, Turks and Caicos. All these countries have suffered from the global financial downturn, because their economy was to a much extent based on international finances, and, as Mr. Foot noted in the report, they must review their taxation policy to improve the situation.

Foot argued that the Caribbean offshore centres, including the British Virgin Islands, needed a diversified tax base. By his words, there is a need for value-added taxes, as well as corporate taxes, levied on companies' profits. These new taxes may be of great impact for the Caribbean tax havens, which have attracted international businesses by their low tax rates: the report states that the BVI and other British territories comprise nearly two-thirds of the offshore market.

Some of the offshore centres refused the implementation of new taxes, but Foot said that keeping tax rates too low might be harmful in the long-term and contribute to the increase of international pressure on tax havens.

Foot also said in the report that many of the territories received lower revenues as the sectors of tourism and finance which were of main importance for their economy suffered very much because of the worldwide economic crisis.

The report received the support of Government of Great Britain, which has varying degrees of control over the territories' domestic and foreign policy. By words of Stephen Timms, the Financial Secretary to Britain's Treasury, this report “sends a strong signal to overseas financial centres that they must ensure that they have the correct regulation and supervision in place.”

Brian Obvi,
Offshore Analyst

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BVI FSC Issues Advisory Warnings on Financial Services Business Companies

On September 8 2009, the British Virgin Islands Financial Services Commission issued two Advisory Warnings concerning the following companies:

Exto Capital S.A.;
Sky Way Monetary Limited;
and Gulf International Investment Group Limited (GIIG 1982).

According to the documents published under Section 4 (1) (l) of the Financial Services Commission Act, 2001, these companies are not licensed to carry on financial services business in or from within the territory of the British Virgin Islands. The Commission advised members of the public to exercise extreme caution in conducting any transactions with these companies.

Members of the public are advised to exercise extreme caution in conducting any transactions with Exto Capital S.A.

The documents are signed by CEO of the BVI FSC Robert A. Mathavious.

Brian Obvi,
Offshore Analyst

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Regular Volume of Statistical Bulletin Issued by the BVI FSC

On July 31, the BVI Financial Services Commission published the fourteenth volume of its Quarterly Statistical Bulletin providing information on financial services activities in the first quarter of the year (ended with March 2009). By the data of the Registry of Corporate Affairs, the number of new offshore company incorporations in this period made 12,307 - meaning there is quite a significant increase compared to the fourth quarter of 2008, but not a very large number compared to the first quarter of 2008, and especially to the same period of 2007. Also, in the first quarter of 2009 just 14 Limited Partnerships were established. The cumulative number of company incorporations as of March 31, 2009 was 435,679, and the number of limited partnerships was 596.

In the first quarter 2009, Banking & Fiduciary Services sector reported total assets of $2,362,258,000 and investments of $4,229,000. Total shareholders equity made $327,500,000. Banking sector reported net income in the amount of $20,060,000, and operating income of $29,463,000. Liquid assets made 25.25% of the total assets, and 35.73% of total deposits; loans made 68.41% of total assets and 103.93% of total deposits.

Investment Business statistics showed 10 licenses were newly issued to investment managers (cumulative number 504), and 61 Certificates of Recognition and Registration. Also, in the first quarter 2009 four Public Mutual Funds (bringing total number to 69) and one Private Mutual Fund (total number 20) were registered. According to the Insurance Services sector, in Qtr1 2009 1 new Captive Insurers license was issued and 265 renewed.

Legal and International Cooperation statistics showed that there were 42 International Cooperation matters, 27 of them requiring the disclosure of public information, 38 Enforcement Matters and 2 Advisory Warnings issued.

Brian Obvi,
Offshore Analyst

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New Warnings Published by the Commission

On July 10 - 13, 2009, the BVI FSC published several documents warning the public on firms that are not licensed to carry on business in or from the territory of the British Virgin Islands. Among the firms that are not authorized to carry on financial services business in BVI there are:
- SP Trade Investments Capital Ltd.
- SP Trader Management Company Ltd.
- Taurus Global Markets Ltd.
- iTrade Capital Markets Ltd.
- Marketiva Corporation
- Pro Finance Group Inc. (PFGFX)

The Commission advised the public to be cautious in transactions with the following companies which are not licensed to carry on banking or financial services business in BVI:
- MBC Financial Services Ltd.
- Multiple Banks Clearing (MBC FX)

The companies that are not licensed to carry on registered agent services business in the British Virgin Islands, and are not incorporated in the British Virgin Islands are:
- Gold-Tech (GT) Services Limited
- Kaizen Corporate Services Limited
- CC Logic LLC

Also, the FSC informed the public that European Direct International Insurance Limited is not licensed to carry on insurance business in or from within the territory, and is not registered or incorporated in the British Virgin Islands.

Advisory Warnings No. 10 - 18 of 2009 were issued under Section 4 (1) (l) of the Financial Services Commission Act, 2001, and signed by Robert A. Mathavious.

Brian Obvi,
Offshore Analyst

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BVI Financial Services Statistics for Q4 2008

In the end of May 2009, the Commission issued the thirteenth volume of Quarterly Statistical Bulletin, describing the situation in the financial services industry of the British Virgin Islands in the fourth quarter of 2008 and covering changes and progress in its different sectors.

The Registry of Corporate Affairs provided following statistical data for this period:
9,000 new companies were incorporated in the fourth quarter of 2008 – a decrease compared to 16,133 in Quarter 3 2008, and 17,513 in the fourth quarter of 2007. Cumulative amount of companies by the end of December 2008 was 414,620. In the reported period, 30 new Limited Partnerships were established – that is more than in Quarter 3 2008. Cumulative number of Limited Partnerships made 558.

If we have a look at the chart of company incorporations in the years 2005-2008, where statistical data are divided by quarters of the year, we can see that the most effective year by number of new incorporations was 2007, while this year was not so effective. This decline is certainly connected with global tendencies and the impact of financial crisis on the financial services industry of the British Virgin Islands.

Concerning the Banking & Fiduciary Services, 1 class I Trust licence was issued, bringing the cumulative number of this category of trust licences to 98 by the end of 2008. The Banking sector reported total assets of $2,363,702,000, total investments of $4,681. By commercial banks statistics, liquid assets made 46.48% of total deposits, return on assets made 2.16%, and average risk asset ratio was 27.82%.

Also, in the fourth quarter of 2008 11 new licenses were issued to investment managers and administrators, bringing the total number of licenses to 581.The number of professional mutual fund entities registered has grown to 1,894, compared to the same period of 2007. There were 831 private mutual funds and 228 public funds newly registered in the BVI.

The Insurance statistics showed that there were 11 new captive insurers licenses issued (4 in Q3 2008), 308 renewed and 68 cancelled. The reported insurance post licensing transactions: 6 directors appointments, 6 cases of shareholding change, 5 mergers and 5 liquidations. Also, 5 captive insurers and 1 domestic insurer received approvals for licensing.

In the sphere of Legal and International Co-operation, it was stated that just 12 co-operation matters were started – compared to 26 in the previous quarter; there were 12 onsite inspections held on trust companies and 4 inspections of investment businesses.

Brian Obvi,
Offshore Analyst

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BVI FSC Issues Advisory Warning No. 4 of 2009

Yesterday, the British Virgin Islands Financial Services Commission has issued an advisory warning No.4 of the year 2009. By this document, the Commission informed that A.M.B Ltd., A.M.B. Amerbank Limited, AMERBANK LIMITED and Antilles Merchant Offshore Bank are not licensed to conduct banking or offshore banking business or any financial services business in or from within the territory of the British Virgin Islands. Also, the named entities are not incorporated or registered in the jurisdiction.

The Commission advised the public to exercise caution in conducting any transactions with these entities, and reminded that they should always be contacted to verify the regulated status of any company, trying to be registered or authorised for work in BVI.

The document is issued under Section 4 (1) (1) of the Financial Services Commission Act, 2001, and signed by Managing Director/CEO of the Commission Robert Mathavious.

Brian Obvi,
Offshore Analyst

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Twelth Statistical Bulletin Published by the BVI FSC

The BVI Financial Services Commission has issued the twelfth volume of its Quarterly Statistical Bulletin, which includes information on the situation in the BVI financial services industry in the third quarter of 2008. The Commission reports on the progress made in different sectors of the BVI financial services industry, and provides new statistical data and analysis.

By the information of Registry of Corporate Affairs, in the third quarter of 2008 there were 16,133 new incorporations. This is less than 20,595 companies incorporated in the third quarter of 2007, but a little more than the number of new BVI companies registered in the second quarter of 2008. Cumulative amount of active companies as of 30 September 2008 was 461,998. This chart below shows the number of new companies incorporated in BVI through the third quarter periods of 2002-2008:
Banking and Fiduciary Services sector showed little changes compared to the second quarter of 2008, and to the third quarter of the previous year. Banking Sector statistics showed the percentage of liquid assets as 44.78% of total deposits, the number of non-performing loans made 3.12% of the total amount of loans, and total assets amount made more than 2 million USD.
Among other data shown in the Bulletin, there is Quarterly Post Incorporation Transactions Statistics for the period, showing the volume of activity of the BVI companies. The Quarter 3 2008 Post Licensing Transactions Statistics included information on the activities of the newly incorporated entities, i.e. the appointment of directors (39), change of authorised agent number, change of auditor (3), change of shareholding/ownership (1).

The Investment Business/Mutual Funds Sector provided information on new licences and certificates issued in the third quarter 2008, according to which 14 new licences were issued in this period (compared to 26 in the same period of 2007 and 10 in Q2 2008). Cumulative number of licences as of September 30 2008 was 576. Also, at the end of this period the share of Professional Active Mutual Funds was 64%, Private Mutual Funds making 28%, and Public Funds making 8% of the total amount.

In the field of Legal and International Co-operation, following figures were reported:
25 formal requests for international co-operation matters (requiring non-public information disclosure) – compared to 15 formal requests in Q2 2008, and 14 requests in Q3 2007. There were 39 enforcement matters in the reported period (27 in the second quarter of 2008, and no as such in the third quarter of 2007).

Brian Obvi,
Offshore Analyst

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Registry of Corporate Affairs Publishes User Guide on CapCos Re-registration

The Registry of Corporate Affairs of the BVI Financial Services Commission has published user guide providing information on re-registration of Companies Act Companies (CapCos) under the BVI Business Companies Act. The User Guide #6 is one of a series of user guides informing about different aspects of the BVI Business Companies Act.

Under the BVI Business Companies Act, which replaced in 2004 the International Business Companies Act and the Companies Act, all IBCs have already been re-registered, and all the CapCos which do not re-register voluntarily go through the automatic procedure. From the re-registration moment, both CapCos and IBCs are named BVI Business Companies.

The deadline of BVI Companies Act Company re-registration was postponed a year ago, from January 1, 2008 to January 1, 2009 for automatic re-registration, and from November 30, 2007 to November 30, 2008 for voluntary applications. The purpose of the User Guide #6 is to inform CapCos directors and shareholders about the difference between automatic and voluntary procedures, which is very significant in the way how the Act applies to CapCos re-registered. So, the Guide clarifies the re-registration process for CapCos and the consequences of voluntary and automatic re-registration. Also, the document contains summary of statutory provisions governing re-registration.

The Guide names the reasons for the requirement to appoint Registered Agent for re-registered BVI BC, taking into consideration that CapCos have never been required to have Registered agent, and states the obligations on CapCos with respect to the appointment of the Agent.

With the purpose to make companies’ directors and shareholders more informed on all the issues of re-registration, on February 9, 2009 the Commission published FAQ on re-registration of former local companies.

Brian Obvi,
Offshore Analyst

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