Amendments have been made to: (1) the Beneficial Ownership Secure Search System Act, 2017 (the BOSS Act); and (2) the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the Substance Act), which are relevant to all companies and limited partnerships that are registered or incorporated in the British Virgin Islands (BVI).
The amendments are in line with evolving international requirements and economic substance standards. Comparable jurisdictions, including the Cayman Islands, Bermuda and the Crown Dependencies, have implemented similar changes to their legislative frameworks. The key change, to both the BOSS Act and the Substance Act, is that limited partnerships (without legal personality) are now in scope. The Substance Act has also expressly carved out investment fund business from being considered a Relevant Activity for the purposes of economic substance. Entities affected by these changes should contact Tricor for more information about their reporting obligations.
The legislation imposes economic substance requirements on any legal entity which carries on one or more of the following relevant activities:
- Banking business
- Insurance business
- Fund management business
- Finance and leasing business
- Headquarters business
- Shipping business
- Holding business
- Intellectual property business
- Distribution and service centre business