The Economic Substance requirements were introduced in the British Virgin Islands via the Economic Substance (Companies and Limited Partnerships) Act, 2018 (the “ESA”) and amendments made to the Beneficial Ownership Secure Search System Act, 2017.
On 9th October 2019 The International Tax Authority (“ITA”) issued rules on how the economic substance requirements may be met, and the interpretation of expressions used in the ESA. (Link to ESA Legislation and Rules
In simple terms, a relevant BVI entity that engages in one or more of the Relevant Activities would be required to comply with the ESA by maintaining an appropriate level of substance in the BVI.
At ESA Solutions, we are committed to providing economic substance solutions in the British Virgin Islands that will enable all clients impacted by the regime to satisfy the necessary requirements and are tailored for each company or relevant entity and range from an initial classification check to a full review, legal advice, advisory services and where necessary, full substance solutions, including the provision of directors, office space and employees.