The end of the calendar year is fast approaching, which means it is time to look ahead at coming deadlines. For any companies incorporated in the British Virgin Islands ("BVI") during the second half of a calendar year, this means the deadline for the annual BVI Registry fees is coming near, having to be paid by 30 November 2022. If your BVI-incorporated entity has reached the end of its life cycle, however, the end of the year is a sound time for a voluntary liquidation to save costs and stress.
When preparing for the BVI voluntary liquidation of any entities that are soon to near or have reached the end of their life cycle, the process need not be complicated. There are several points to consider and simple steps that can be taken to save the cost and administrative burden of extending the life of a BVI company past its natural endpoint.
What are the deadlines for BVI voluntary liquidation for companies incorporated during the second half of the year?
BVI companies incorporated or registered during the second half of any given year need to have an appointed voluntary liquidator file the final notice for a company on or before 30 November to avoid paying unnecessary Registry fees.
To ensure there is enough time to get all related paperwork in order, we recommend that interested parties begin the voluntary liquidation process prior to mid-October.
Who can be appointed as a BVI voluntary liquidator?
Companies that are in the process of deciding who will be named voluntary liquidator of a BVI company should consider the requirements of BVI Business Companies Regulations (Revised 2020). This set of regulations disqualifies certain individuals from serving as voluntary liquidator, including those who have been either the director of the company or an affiliate, or who have served in a senior management position in relation to the company, within the past two years. For the full list of who can and cannot serve as a voluntary liquidator, anyone interested can review the 2020 revised regulations.
What are the benefits of BVI voluntary liquidation?
Leveraging our legal and specialised fiduciary and fund services teams, the Maples Group provides clients with a comprehensive range of restructuring and liquidation services, including a team comprised of dedicated individuals with extensive experience who can act as voluntary liquidators to BVI companies. For a straightforward, no assets voluntary liquidation of a BVI company, we can generally complete the process within six to eight weeks.
All regulatory obligations need to be considered during the liquidation process and complied with until the entity is liquidated. It should be noted that some obligations, such as AEOI reporting and subsequent de-registration, cannot be completed until after the entity has liquidated. A specialist team such as the one at Maples Group can assist with regulatory compliance throughout the liquidations process.
We are aware that significant changes to the laws governing voluntary liquidations will be coming in early 2023 and we will provide a further update to clients prior to these coming into effect.
For further information on the team and our liquidation services, please view our brochure on our Liquidations and Dissolutions Services. Additionally, you may wish to refer to our legal guide with information on the statutory process: Voluntary Liquidations of Solvent British Virgin Islands Company Incorporated or Re-Registered under the BVI Business Companies Act (as amended).
Liquidation is a natural part of the business life cycle. Please do not hesitate to get in touch with our specialist team who can guide you through this process.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
