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Further to our previous article on the key highlights of the BVI Business Companies (Amendment) Act, this article will provide you with essential information regarding the filing of Annual Financial Returns, compliance requirements, and the consequences of non-compliance.
Key points to note
Filing Requirement:
Under the amended Business Companies Act, it is mandatory for all Business Companies to file an Annual Financial Return with their registered agent for each financial year. The Annual Financial Return should be submitted within 9 months after the end of the respective year.
Filing Due Dates:
To ensure timely compliance, please take note of the following filing due dates based on different financial year ends:
See below the example of due date for reference:-
Financial year end | Filing due date | Final due date of 1st filing |
31 December 2023 | 1 January 2024 | 30 September 2024 |
28 February 2024 | 1 March 2024 | 30 November 2024 |
30 April 2024 | 1 May 2024 | 31 January 2025 |
Please note that the default financial year end for BVI companies is December 31st. If your company operates on a different financial year-end, kindly consult your usual corporate administrator.
Required Information and Form:
The Annual Financial Return must contain the information prescribed by the Commission as outlined in the BVI Business Companies (Financial Return) Order. We have attached the specific form to be used for filing the Annual Financial Return to this communication.
Filing Process:
The Annual Financial Return should be filed exclusively with your registered agent, who will maintain it at the BVI Registered Office. Upon request, the registered agent must provide a copy of the Annual Financial Return to the Commission or any other competent authority. The registered agent is required to retain the Annual Financial Return for at least 5 years from the date they cease to act as the registered agent.
Consequences of Non-Compliance
Failure to File Annual Financial Return:
In the event of a company's failure to file its Annual Financial Return, the registered agent must notify the Registrar in writing within 30 days of the due date. The notification should include the company's name, the year to which the Annual Financial Return relates, and the last time the company filed its Annual Financial Return.
Penalties for Late Filing:
Late filing of the Annual Financial Return will result in penalties as follows:
For the first month or part thereof after the filing due date: $300
For each subsequent month or part thereof: $200 (up to a maximum penalty of $5,000)
If the maximum penalty is incurred and the Annual Financial Return remains outstanding, the Registrar may strike the company off the register. Restoring a struck-off company can only be done through the courts, incurring significant legal fees.
Compliance Steps
To ensure compliance with the Annual Financial Return filing requirement, please follow these steps:
Determine the financial year end, whether it aligns with the calendar year or a custom financial year.
Calculate the due date based on the financial year end. For instance, if your financial year ends on December 31st, the due date is January 1st, and the final filing date is September 30th.
Gather all relevant accounting and financial records, including invoices, payments, bank statements, and contracts for the reporting period.
Prepare a comprehensive tabulation of your company's income and expenditure.
Please adopt the attached PDF form to complete the annual financial statement and proceed with its submission by utilizing the designated function key button within the form.
Submit the completed form and accounting records via email, ensuring that all necessary contact details are provided.
If you require preparation of the Annual Financial Return service, please contact your usual corporate administrator.
Upon receipt of the submitted form and accounting records, we will process them accordingly. Once the renewal payment is settled, the Annual Financial Return and accounting records will be sent to the BVI Registered Office for maintenance.
Service Charge
Please note that the service charge of USD 150 for filing the Annual Financial Return will be included in your annual renewal invoice. This charge covers the administrative costs associated with processing and submitting the Annual Financial Return on your behalf.
Conclusion
Complying with the Annual Financial Return filing requirement is a straightforward process, and Aegis International Group Limited is here to assist you every step of the way. Please feel free to contact us if you require any further assistance.
Please refer to the link for the Frequently Asked Questions (FAQ) section.