Amendments to the BVI Business Companies Act 2004

06.08.2012 Within corporate legislation reform on the British Virgin Islands a number of amendments to the BVI Business Companies Act 2004 was accepted
The problem concerning the change of the legal (registered) address of the company and the agent’s change are a prime focus of the Law on amendments. Earlier there was a difficult procedure of changing the legal address and the agent of the company. Now due to the amendments there are some stages for the change the agent’s or the legal addresses:
1) The resolution on change of the legal address or the agent can be submitted not only the director of the company (as earlier), but also any participant of the company.
2) By the changing of the agent: the resolution should be submitted to the Registrar only by the agent of the company or the person authorized on submission of documents on behalf of the company, then it is necessary, that the resolution was accepted and signed by the new authorized agent of the company. Also there is one doubtless advantage: it is also introduction so-called «the uniform resolution»: in case the agent has some company, it isn't obliged to submit the resolution on each separate company: one notice of change of the agent is quite enough.
3) The registrar signs the resolution and sends to the company for confirmation.
It is expected that amendments will come into effect already at the end of the year. Let's remind also that the adoption of this BVI Business companies Act in 2004 became huge break for BVO which always followed earlier traditions of Great Britain concerning the corporate legislation.

Expert’s opinion

At the global recession’s height all the states are trying to involve flows from investing Tools are various: decrease in tax rates for nonresidents, fast procedure of registration of the company and execution of necessary documents. BVI chose some other way:  amended the corporate legislation what didn't become a surprise in general: reform was prepared since 2007. First of all, the amendments inserted on July, 2012, are directed on strengthening of business’ transparency on BVI.
Yes, BVI are an offshore jurisdiction, but:
1) The BVI are the British overseas territory that is doubtless plus: all the legislation of islands is made in the best English traditions.
2) The BVI aspire to business’ transparency and, it is not necessary to think that simplification of some procedures is „cheap bait”, no! It is only a desire to comply with the standards of OECD.
The company on the BVI is a guarantee of protection for the beneficiaries from false charges of money’ concealment. The aspiration of the BVI to be strike off from «the gray list» of OECD constantly proves to be true by acceptance of the European standards.
Let's note that these amendments are the advantages for the clients of our company doing business on the BVI, because these amendments will allow initiating fast change of the company’s agent (procedure will take 9 days), if such agent inures not to the benefit of the company

On the basis: http://www.bvifsc.vg/

Julia Nepomnyaschikh ( the paralegal of Moscow office of Honest & Bright)