Dear Valued Clients,
As we enter the new year, we wanted to take the opportunity to share some of our market intelligence with you and to wish you the very best for a healthy and prosperous year ahead.
As we are sure you are all aware, the hard deadline for filing economic classifications for legacy BVI entities (i.e. those incorporated prior to 1 January 2019) was 29 December 2020. We understand that there will be a 90 day extension, although we have not yet had formal notification of this from the BVI ITA.
We have made great progress to date and can happily report that over 80% of our client entities have used our NEST platform to classify their entities. We wanted to take the opportunity to say a huge “THANK YOU” to all of you, our clients, for the huge efforts you have made, to ensure we all remain compliant with the new legislation. Thank you.
We thought you might like us to share some of the data we now have. Of the classifications made through our portal, we are able to draw the following conclusions:
1.The vast majority of BVI companies (89%) are out of scope (OOS). No further substance related activity is required, save for an annual re-classification and filing in the BOSS portal which you can achieve efficiently and cost-effectively through our NEST platform.
2.The next highest classification (10%) is Pure Economic Holding Entities (PEHCs). These entities benefit from a “lighter touch” compliance requirement, requiring only that the companies maintain a Registered Office/Agent in BVI, are kept in good standing and have adequate premises and employees located in BVI, which can be easily ensured through our cost-effective Investment Administration package (see attached).
Given that 99% of entities will either be classified as OOS or PEHC, we should all take comfort that the BVI will continue to be a market leader for strategic business, and family planning purposes.
With respect to the small number of entities that fall within one of the other relevant activity categories, we would be delighted to assist you with your analysis of, and proposed actions in relation to, those. We offer a range of bespoke substance solutions, as outlined in the attached flyer and are also able to assist with corporate migration out of the BVI, where desired. If you have an entity that falls within one of these categories and you have not already received our further information request, please let the Substance Solutions Team know.
In the meantime, we wish you a hopeful, healthy and prosperous 2021.
Yours,
The NEST Team
