1. BVI Business Companies

Section 98 of the BVI Business Companies Act 2004 (BCA) has always provided that a BVI business company must keep records that:

  • are sufficient to show and explain the company’s transactions; and
  • will, at any time, enable the financial position of the company to be determined with reasonable accuracy.

Additionally to the above, Section 5A (1) of Mutual Legal Assistance (Tax Matters) Act 2003 (MLAT) applies to all companies registered under the BCA and provides that every company shall keep “records and underlying documentation” in order to show and explain the company’s transactions; and will, at any time, enable the financial position of the company to be determined with reasonable accuracy:

  • Such records and underlying documentation may be kept at the office of its registered agent (“the RA”) or at such other place or places, within or outside the Virgin Islands but if not kept at the office of the RA, a record of the location where they are kept must be given to the RA.
  • Every company shall retain the records and underlying documentation for a period of at least five years from the date of completion of the transaction to which the records and underlying documentation relate; or the company terminates the business relationship to which the records and underlying documentation relate.

Any BVI authority including Financial Services Commission, Financial Investigation Agency, International Tax Authority, Registrar of Corporate Affairs is allowed to make a necessary inspection in relation to availability of such records.

Failure to comply with the above requirements can result in fines being charged against the company and its directors, negative liabilities for the directors and/or the company being “struck off” from the register of companies. The exact amount of fine and/or penalties as well as respective administrative consequences is to be determined individually for each particular case.

  1. Seychelles Companies

This jurisdiction places requirements similar to the ones applicable in BVI.

  1. Panama and Belize Companies

Panama and Belize have similar requirements as BVI, and the main difference with BVI is that the RA and any competent Authority of Belize and Panama may ask to be provided and/or presented with such accounting records when and if they deem necessary.

In compliance with the above laws and regulations concerning BVI, Panama, Belize and Seychelles, please note that our associates can provide any customized report such as management accounts or any other one deemed necessary for record keeping purposes. Additionally, many companies choose to do so in the interest of their stakeholder as well for management purpose.

In case you wish to receive more information regarding any of the above jurisdictions as well as preparation of management account, please contact:

Mrs. Cleo Loizou Kyriakidou (info@naklaw.com) at NASOS A. KYRIAKIDES & PARTNERS LLC, by telephone (+357 25 352352) or by fax (+357 25 352353).