Substance Solutions in the BVI
In the eighth instalment of the Harneys Substance on Substance series, Philip Graham and Ross Munro discuss Substance Solutions in the BVI.Episode EightPhil and Ross highlight the options available to BVI entities once they have classified themselves under the Economic Substance legislation and have determined that they need to put substance in place in the BVI.Key takeaways: • After the classification process is completed, BVI entities who have determined that they are conducting “holding business” will ask whether their current set up in the BVI is enough to meet their Economic Substance obligations.• There are a large number of entities in the BVI that would describe themselves as “holding companies” if asked, but will not actually be conducting “holding business” for the purposes of this legislation. We have touched on this in earlier podcasts.• Companies which are classified as conducting “holding business” are required to comply with their statutory obligations and have adequate premises and employees in the BVI. In most cases, adequate premises and employees will be satisfied by the registered office and registered agent function they already have in the BVI. However, this is not an absolute certainty. If a company conducting “holding business” is very active, then it might need to put additional substance in place.• Harneys are offering various degrees of health checks for BVI entities to ensure that all holding businesses are meeting their statutory obligations. This is something they should be doing anyway.• For the other relevant activities, BVI entities will need to establish the nature and scope of that relevant activity before determining what substance is required. Harneys Fiduciary can provide a number of different services including:o directorships to help with the direction and management requirement;o outsourcing services to perform the core income generating activity;o administration to provide accounting services and record keeping;o premises (shared and dedicated premises space); ando immigration, labour and work permit support, as well as the secondment of Harneys’ staff for certain activities.This episode was recorded on 10 September 2019.Stay tuned for more Substance on Substance.