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Economic Substance obligations - best practice is to liquidate not strike off

Updated: Feb 16


The Economic Substance regime in the British Virgin Islands imposes ongoing annual reporting obligations to all companies - including struck off companies which have ceased to carry on all business. A company which has been voluntarily liquidated and dissolved has no such ongoing obligations whereas a struck off company is required to carry on making an annual filing under the economic substance regime for 7 years until the company is dissolved. This is another reason to consider using BVI Liquidator to assist with voluntary liquidation over an automatic strike off.

 

A failure to make the filing without reasonable excuse is an offence which could extend to the directors of the company. Potential penalties are severe. Enforcement action would be taken through the Courts and a criminal burden of proof will apply.


A failure to make the filing without reasonable excuse is an offence which could extend to the directors of the company. Potential penalties are severe. Enforcement action would be taken through the Courts and a criminal burden of proof will apply.


Contact BVI Liquidator no for more information info@bviliquidator.com


January 2022 UPDATE - its important to note that the BVI Tax Authorities are starting to check companies and their disclosure, if you are liquidating your company make sure to classify correctly on the final ES filing.

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